News Releases

CALGARY, ALBERTA – January 7, 2008 /CNW/ - Newalta Income Fund ("Newalta") today announced its planned capital budget of $135 million for 2008. Maintenance capital expenditures are budgeted to be approximately $25 million. Growth capital expenditures in 2008 of approximately $110 million are planned for numerous internal growth projects across the country (currently budgeted at $90 million for operational investments and $20 million in corporate investments) that will drive growth in 2009. These investments include developing Newalta's SAGD business, expanding customized onsite solutions as well as adding satellite facilities, landfills and centrifuges.

"In 2008, we will continue to capitalize on opportunities to expand services, add processes and to improve the productivity and efficiency of our operations across Canada. In addition, we will continue to pursue acquisitions to enter new markets and to add new processes to our service platform," said Al Cadotte, Newalta's President and Chief Executive Officer.

Newalta Income Fund is the largest Canadian 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, manufacturing, mining, oil and gas, lead, petrochemical, pulp and paper, 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 forward-looking statements relating to expected future expansion initiatives and the related return on investment. These statements are based on current views, expectations and assumptions that are subject to risks and uncertainties which are difficult to predict, including risks and uncertainties relating to the uncertainty of expected operating results, industry conditions, availability of financing alternatives, and debt service and future capital needs. Actual expansion initiatives might differ materially from those suggested in any forward-looking statements whether as a result of new information, future developments or otherwise.