News Releases

CALGARY, ALBERTA--The following information is intended to assist
individual Canadian Unitholders of Newalta Income Fund
("Newalta") in the preparation of their 2003 T1 Income Tax
Return.

The information contained herein is based on Newalta's
understanding of the Income Tax Act (Canada) 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 2003 T1 Income Tax
Return where the 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 and
received cash distributions during the period, will receive "T3
Supplementary" slips directly from their broker or intermediary,
not from the transfer agent or Newalta.

Registered Unitholders of Newalta who received cash distributions
during the period from the transfer agent, Valiant Trust Company,
(and not from a broker or intermediary), will receive "T3
Supplementary" slips directly from Valiant Trust Company.

The attached "Schedule 1" includes supplementary information on
the taxable portion of the 2003 cash distributions and is shown
on a per unit basis. Under Paragraph 12 (1)(m) of the Income Tax
Act, the taxable amount allocated by Newalta in 2003 to the
Unitholders must be reported by the Unitholders in their 2003
Income Tax Return.

Accordingly, the taxable amount of cash distributions (i.e.,
"Other Income" Box (26) on the T3 slips) with respect to record
dates March 31, 2003 up to and including December 31, 2003 are
included in your "T3 Supplementary". The deadline for mailing all
T3 Supplementary Information slips as required by Canada Revenue
Agency is March 30, 2004.

Adjusted Cost Base

Holders of Newalta Units are required to reduce the Adjusted Cost
Base of the Units. The reduction is equal to the cumulative cash
received from cash distributions minus cumulative taxable amounts
reported as "Other Income" Box (26) on their T3 slips (if any).

The Adjusted Cost Base is used in calculating capital gains or
losses on the disposition of the trust Units if the owner holds
the trust Units as a capital property.


/T/

Schedule 1

Newalta Income Fund
2003 - T3 Information For Canadian Residents

The following table outlines the breakdown of cash distributions per
unit paid or payable by Newalta with respect to record dates for the
period March 31, 2003 - December 31, 2003 for Canadian Income Tax
purposes.

                                                                    Tax-
                                                   Taxable     Deferred
                                                    Amount       Amount
                                                   (Box 26)  (Return of
                                           Total     Other      Capital)
                                    Distribution    Income       Amount
Record Date         Payment Date      Paid Cents     Cents        Cents
-----------------------------------------------------------------------
March 31, 2003      April 15, 2003           9.0       8.9          0.1
April 30, 2003      May 15, 2003             9.0       8.9          0.1
May 30, 2003        June 16, 2003            9.0       8.9          0.1
June 30, 2003       July 15, 2003            9.0       8.9          0.1
July 31, 2003       August 15, 2003          9.0       8.9          0.1
August 29, 2003     September 15, 2003       9.0       8.9          0.1
September 30, 2003  October 15, 2003        10.5      10.3          0.2
October 31, 2003    November 17, 2003       10.5      10.3          0.2
November 28, 2003   December 15, 2003       10.5      10.3          0.2
December 31, 2003   January 15, 2004        10.5      10.4          0.1
-----------------------------------------------------------------------
TOTAL CENTS PER UNIT                        96.0      94.7          1.3
-----------------------------------------------------------------------

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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 37 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 strong track record of
profitable growth and environmental stewardship, Newalta is
focused on leveraging its proven competencies in new service
sectors and geographic markets from coast to coast.