News Releases

CALGARY, ALBERTA - Feb. 15, 2006 /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 7,000,000 Trust Units at $28.00 each to raise gross proceeds of $196 million on a bought deal basis. The underwriting syndicate is led by CIBC World Markets 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 March 3, 2006, subject to regulatory approvals. Purchasers of Trust Units under this offering will be entitled to receive the distribution to be paid on April 17, 2006 to unitholders of record on March 31, 2006.

After applying the net proceeds from the offering to repay a portion of outstanding indebtedness, approximately $56 million of debt will be outstanding under the revolving extendible term facilities. The unutilized capacity under the revolving extendible term facilities of $144 million plus the undistributed cash available for growth and distributions will fund 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.