News Releases

CALGARY, ALBERTA - Dec. 13, 2006 /CNW/ - Newalta Income Fund ("Newalta") (TSX:NAL.UN) - today announced its planned capital budget of $148 million for 2007 - a 25% increase over its 2006 budget and an indication of the Fund's strong outlook for growth opportunities. Maintenance capital expenditures in 2007 are budgeted to be $28 million, representing a $7 million increase over the 2006 estimate as a result of the growth in the business and new assets that Newalta has acquired over the year. Growth capital expenditures in 2007 of $120 million are planned for investments throughout the year in internal growth opportunities. These are relatively low-risk high-return investments that will improve productivity and expand services as well as market coverage at Newalta's operations across Canada.

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 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.