News Releases

CALGARY, ALBERTA – January 2, 2009 /CNW/ - Newalta Inc. ("Newalta") (TSX:NAL) announced that on December 31, 2008, it completed the previously announced unitholder and court approved conversion (the "Conversion") whereby all outstanding trust units of Newalta Income Fund were exchanged for common shares in the capital of Newalta on a one-for-one basis. The amalgamation of various subsidiary operating entities of Newalta in connection with the Conversion was completed on January 1, 2009. 

The common shares of Newalta will commence trading on the Toronto Stock Exchange, under the symbol "NAL", on or about January 7, 2009. Concurrently, the trust units of Newalta Income Fund will be delisted from the Toronto Stock Exchange. The 7.0% convertible unsecured subordinated debentures of Newalta will continue to trade under the symbol "NAL.DB". Former holders of trust units who are individuals will generally realize a capital gain or loss as a result of the Conversion. The recent proposed legislation released by the Department of Finance relating to the "stop loss" rules contained in the Income Tax Act affects former holders of trust units that are corporations, trusts or partnerships. As a result of these rules, investors that held trust units in a corporation, trust or partnership will be precluded from realizing a capital loss as a result of the Conversion if such holders (or certain affiliated persons) hold shares of Newalta on January 30, 2009. The "stop loss" rules will not preclude an individual holder from realizing a capital loss. Eligible holders that realize a gain on the conversion may be able to defer such gains by making an election with Newalta under section 85 of the Tax Act prior to March 31, 2009. 

Newalta Income Fund is Canada's largest industrial waste management and environmental services provider and focuses on maximizing the value inherent in industrial waste through the recovery of saleable products and recycling. It also provides environmentally sound disposal of solid, non-hazardous industrial waste. With talented people and a national network of facilities, Newalta serves customers in the automotive, forestry, lead, manufacturing, mining, oil and gas, petrochemical, pulp and paper, refining, steel and transportation service industries. Providing solid investor returns, exceptional customer service, safe operations and environmental stewardship has enabled Newalta to expand into new service sectors and geographic markets. Newalta Income Fund's units trade on the TSX as NAL.UN. For more information, visit www.newalta.com. 

This news release contains statements that may constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. Forward-looking information includes, among others, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Specific forward-looking information contained in this news release include statements regarding listing and trading of the Newalta Inc. common shares and debentures on the Toronto Stock Exchange. Readers are cautioned not to place undue reliance on such forward-looking information. Forward-looking information is based on current expectations and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Newalta and described in the forward-looking information contained in this news release. No assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur or, if any of them do so, what benefits Newalta will derive therefrom.