News Releases

CALGARY, ALBERTA - Jan. 9, 2007 /CNW/ - 

Not for distribution to U.S. newswire services or for dissemination in the United States

Newalta Income Fund ("Newalta") (TSX:NAL.UN) today announced it has entered into an agreement to sell 3,000,000 Trust Units at a price of $26.10 per Trust Unit to raise gross proceeds of $78.3 million on a bought deal basis. The underwriting syndicate is led by CIBC World Markets Inc. and includes BMO Capital Markets, RBC Capital Markets, CanaccordAdams, Orion Securities Inc., Scotia Capital Inc. and Sprott Securities Inc. The offering will be made in each of the provinces of Alberta, British Columbia, Manitoba, Ontario and Quebec and is expected to close on January 26, 2007, subject to regulatory approvals. Purchasers of Trust Units under this offering will be entitled to receive the distribution to be paid on February 15, 2007 to unitholders of record on January 31, 2007.

After applying the net proceeds from the offering to repay a portion of outstanding indebtedness, approximately $96 million of debt will be outstanding under Newalta's revolving extendible term facilities. The unutilized capacity under the revolving extendible term facilities of $146 million along with undistributed cash available for growth and distributions will fund the previously announced 2007 capital budget of $148 million and future growth.

Newalta Income Fund is one of Canada's leading industrial waste management and environmental services companies 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, 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 plans, financing initiatives and operations. 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 future capital needs. Actual results might differ materially from those suggested in any forward-looking statements whether as a result of new information, future developments or otherwise.