News Releases

CALGARY, ALBERTA - Aug. 3, 2005 /CNW/ - Newalta Income Fund (TSX:NAL.UN) ("Newalta") is pleased to announce the acquisition of the assets of WasteCo Environmental Services Ltd., a wholly owned subsidiary of Environmental Management Solutions Inc. (EMS.TO).

These operations, with 73 people, provide a broad range of oilfield and industrial waste management services which complement Newalta's existing operations. The acquisition broadens Newalta's service offering to include turnkey outsourcing of all waste and environmental management services including waste tracking and oilfield site reclamation. The business includes three soil treatment operations, two transfer station facilities and two Class II industrial landfill operations located in Alberta,
British Columbia and Saskatchewan.

The total purchase price for the acquisition was $7.1 million cash plus $0.5 million upon final verification of the July 31, 2005, work in progress. The acquired business has historically generated annual revenue of approximately $25 million.

"We welcome the 73 people to Newalta and look forward to their contribution to our continued success as we move forward with a total organization of almost 800 people," said Al Cadotte, the President and CEO of Newalta.

"We have completed three acquisitions in 2005 for a total of $20 million and our growth capital program of $30 million is proceeding as planned. These investments will drive profitable growth in the second half of 2005 as well as in 2006. We are pursuing additional acquisition opportunities to further enhance returns to our investors."

Newalta Income Fund is an open-ended trust that maximizes the inherent value in certain industrial wastes through recovery of saleable products and recycling, rather than disposal. Through an integrated network of 44 state-of-the-art facilities, Newalta delivers world-class solutions to a broad customer base of national and international corporations, in a range of industries, including the automotive, forestry, pulp and paper, manufacturing, mining, oil and gas, petrochemical, and transportation services industries. With a track record of profitable growth and environmental stewardship, Newalta is focused on leveraging its position in new service sectors and geographic markets from coast to coast.