News Releases

CALGARY, ALBERTA – December 8, 2008 /CNW/ - Newalta Income Fund ("Newalta") (TSX: NAL.UN) provided clarification regarding the transferability and assignability of options to acquire common shares of Newalta Inc. that may be issued pursuant to the Option Plan of Newalta Inc. that has been submitted for approval by unitholders of Newalta ("Unitholders") at the special meeting of Unitholders scheduled to be held on December 17, 2008 (the "Meeting").

The form of Option Plan set forth in the meeting materials distributed to Unitholders in connection with the Meeting (collectively, the "Meeting Materials") states that options granted under the Option Plan may not be transferred or assigned without the prior written consent of Newalta Inc.

Newalta has revised the Option Plan to further clarify and specifically state that approval of shareholders of Newalta Inc. will be required in order for Newalta Inc. to modify or amend the provisions of the Option Plan in any manner which would permit options to be transferrable or assignable, other than for normal estate settlement purposes. All other terms of the proposed Option Plan remain unchanged from those set forth in the Meeting Materials.

Newalta Inc. will be the corporation resulting from the proposed reorganization of Newalta from an income trust into a dividend-paying corporation (the "Conversion") to be considered at the Meeting. The Conversion is subject to Unitholder and other approvals and will be undertaken pursuant to a statutory plan of arrangement under the Business Corporations Act (Alberta). Newalta expects, subject to receipt of required approvals, that the Conversion will be effective on December 31, 2008.

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.