News Releases

CALGARY, ALBERTA - March 4, 2005 /CNW/ - The following
information is intended to assist holders of trust units (the "Newalta
Units") of Newalta Income Fund (TSX:NAL.UN) ("Newalta") in the
preparation of their 2004 T1 Income Tax Return.

The information contained herein is based on Newalta's understanding of
the Income Tax Act (Canada) (the "Tax Act") and the regulations
thereunder and is provided for general information only. Unitholders are
advised to consult their personal tax advisors with respect to their
particular circumstances.

Trust Units held within an RRSP, RRIF, RESP or DPSP

No amounts are required to be reported on the 2004 T1 Income Tax Return
where Newalta Units are held within an RRSP, RRIF, RESP or DPSP.

Trust Units held outside of an RRSP, RRIF, RESP or DPSP

Unitholders who held their Newalta Units outside of an RRSP, RRIF, RESP
or DPSP, through a broker or other intermediary will receive a T3
Supplementary Information slip directly from their broker or
intermediary, not from the transfer agent or Newalta.

Registered holders of Newalta Units who did not hold their Newalta Units
through a broker or intermediary will receive a T3 Supplementary
Information slip directly from Valiant Trust Company.

The attached "Schedule 1" includes supplementary information on the
Canadian tax characterization of the 2004 distributions declared and is
shown on a per unit basis. Under Paragraph 12(1)(m) of the Tax Act, the
taxable amount allocated by Newalta in 2004 to the holders of Newalta
Units must be reported by the unitholders in their 2004 Income Tax
Return.

Accordingly, the taxable amount of distributions (i.e., "Other Income"
Box (26) and "Dividend Income" Box (23) on the T3 Supplementary
Information slip) with respect to record dates from January 1, 2004 up
to and including December 31, 2004, are included in your T3
Supplementary Information. The deadline for mailing all T3 Supplementary
Information slips as required by the Canada Revenue Agency is March 31,
2005.

Reduction to Adjusted Cost Base

Holders of Newalta Units are required to reduce the Adjusted Cost Base
of their Newalta Units by the return of capital amount. The Adjusted
Cost Base is used in calculating capital gains or losses on the
disposition of Newalta Units if the owner holds the Newalta Units as
capital property.

Schedule 1

Newalta Income Fund

2004 - T3 Information for Canadian Residents

The following table outlines the breakdown of distributions declared per
Newalta Unit with respect to record dates for the period January 1, 2004
up to and including December 31, 2004 for Canadian income tax purposes.

/T/

------------------------------------------------------------------------
                                                Other Dividend   Return
                                 Distribution  Income   Income       of
                                     Declared (Box 26) (Box 23) Capital
                                       cents/  cents/   cents/   cents/
Record Date        Payment Date          unit    unit     unit     unit
------------------------------------------------------------------------
January 30, 2004   February 16,          10.5     8.6      1.8      0.1
                   2004
------------------------------------------------------------------------
February 27, 2004  March 15,             10.5     8.6      1.8      0.1
                   2004
------------------------------------------------------------------------
March 31, 2004     April 15,             12.5    10.2      2.2      0.1
                   2004
------------------------------------------------------------------------
April 30, 2004     May 17,               12.5    10.2      2.2      0.1
                   2004
------------------------------------------------------------------------
May 31, 2004       June 15,              12.5    10.2      2.2      0.1
                   2004
------------------------------------------------------------------------
June 30, 2004      July 15,              12.5    10.2      2.2      0.1
                   2004
------------------------------------------------------------------------
July 30, 2004      August 16,            12.5    10.2      2.2      0.1
                   2004
------------------------------------------------------------------------
August 31, 2004    September 15,         12.5    10.2      2.2      0.1
                   2004
------------------------------------------------------------------------
September 30, 2004 October 15,           12.5    10.2      2.2      0.1
                   2004
------------------------------------------------------------------------
October 29, 2004   November 15,          12.5    10.2      2.2      0.1
                   2004
------------------------------------------------------------------------
November 30, 2004  December 15,          12.5    10.2      2.2      0.1
                   2004
------------------------------------------------------------------------
December 31, 2004  January 17,           12.5    10.2      2.2      0.1
                   2005
------------------------------------------------------------------------
TOTAL CENTS PER UNIT                    146.0   119.2     25.6      1.2
------------------------------------------------------------------------

/T/

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 41
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.