News Releases

CALGARY, ALBERTA - Jan. 12, 2006 /CNW/ - Newalta Income Fund (TSX:NAL.UN) ("Newalta") today announced a capital budget of $118 million for 2006, consisting of $18 million in maintenance capital expenditures and $100 million in growth capital investments. The growth capital program includes $15 million in tuck-in acquisitions in western Canada as well as $12.5 million in corporate investments that primarily relate to a new information system being implemented to support the continued growth of the Fund. The remaining $72.5 million will be invested in facilities and equipment to expand services, improve productivity and enhance market coverage in Newalta's Oilfield, Industrial and Central operating divisions. Newalta is reviewing alternatives to fund the 2006 capital budget.

"In 2006, we will invest in a broad range of relatively low-risk and high-return opportunities to grow and strengthen our existing operations as we also pursue acquisitions to generate additional growth and continue to provide superior returns to our investors," said Al Cadotte, Newalta's President and Chief Executive Officer.

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 non-hazardous industrial solid 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, 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.