News Releases

CALGARY, ALBERTA - May 31, 2004 /CNW/ - Newalta Income
Fund ("Newalta") today announced that it has entered into a new
credit agreement with its existing lending syndicate.

Under the new agreement, Newalta will have a $25 million
operating line to fund working capital requirements and a $65
million extendible term facility to fund growth. The earliest
principal payments will be due under the extendible term facility
is July 1, 2006. As at May 31, 2004, Newalta had $4 million
outstanding under the operating line and $12 million outstanding
under the term extendible facility.

"The 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 and 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 40 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.