News Releases

CALGARY, ALBERTA - July 28, 2005 /CNW - Newalta Income Fund (TSX:NAL.UN) ("Newalta") today announced that it has entered into a new credit agreement with a lending syndicate of four Canadian chartered banks.

Under the new $130 million credit agreement, Newalta's extendible operating line to fund working capital remains at $25 million and the extendible term facility to fund growth increases from $65 to $105 million. As at June 30, 2005, Newalta had utilized $14 million of the extendible operating line and $46 million of the extendible term facility.

"This new credit facility provides the financial capacity to fund our growth capital investments which will drive future cash flows and increase returns for our investors," said Ronald Sifton, Senior Vice President, Finance & CFO.

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 42 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.