News Releases

CALGARY, ALBERTA - March 3, 2006 /CNW/ - 

NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Newalta Income Fund ("Newalta") (TSX:NAL.UN) announced today the closing of its previously disclosed $196.0 million equity financing of 7,000,000 trust units from treasury for net proceeds to Newalta of $185.7 million. Upon closing, Newalta has 36,126,862 trust units outstanding. The underwriting syndicate was led by CIBC World Markets Inc. and included RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., Sprott Securities Inc., Canaccord Capital Corporation, Scotia Capital Inc. and Orion Securities Inc.

The net proceeds of the offering will be used to repay the funds borrowed to complete the PSC Industrial Services Canada Inc. acquisition and pay down outstanding indebtedness under the credit facility. The unutilized credit facility capacity of approximately $144 million and undistributed cash flow will be used to fund growth capital investments and acquisitions, including the previously announced 2006 capital budget of $118 million.

Newalta Income Fund has delivered dynamic profitable growth and generated average revenue growth of 30 percent per year since 1993. Newalta, one of Canada's largest industrial waste management companies, focuses on maximizing the value inherent in industrial waste through the recovery of saleable products and recycling. Newalta also provides environmentally sound disposal of solid, non-hazardous industrial waste. With 1,500 talented people and a network of 56 facilities, Newalta serves corporations 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. For more information, visitwww.newalta.com.

This news release contains forward-looking statements relating to expected future expansion initiatives. 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.