ACTIVEnergy Income Fund - Rights Offering



    TORONTO, Sept. 18 /CNW/ - ACTIVEnergy Income Fund (the "Fund") is pleased
to announce that it has filed a final prospectus in connection with an
offering of Rights to its unitholders to subscribe for Units (the "Rights
Offering"). Unitholders of record at the close of business (Toronto time) on
September 29, 2008 will receive one Right for each ACTIVEnergy Unit held on
the record date. The Rights will commence trading on the Toronto Stock
Exchange under the symbol AEU.RT on September 25, 2008. Three Rights will
entitle the holder to purchase one ACTIVEnergy Unit at a price of $7.50 until
4:00 p.m. (Toronto time) on October 27, 2008, at which time all unexercised
Rights will expire with closing of exercised Rights to occur shortly
thereafter. If all the Rights are exercised, the Fund will issue approximately
8 million Units and receive net proceeds of approximately $59 million. The
subscription price of $7.50 is approximately 84% of the net asset value per
Unit on September 16, 2008.
    Each holder of Rights who subscribes for all of the Units to which that
holder is entitled under the Basic Subscription Privilege may subscribe for
any number of additional Units, if available, at a price equal to the
subscription price for each additional Unit, subject to availability. Units
issued pursuant to this Rights Offering will participate in the Fund's
November 2008 distribution. The directors and officers of the Manager who own
Units intend to exercise all their Rights to acquire Units under the Basic
Subscription Privilege.
    The net proceeds of the Rights Offering will be invested by the Fund in
accordance with its investment objectives. The Fund's investment objectives
are to (i) pay monthly distributions to Unitholders, (ii) return to
Unitholders upon the termination of the Fund at least the original
subscription price of the Units, and (iii) enhance long-term total return
through capital appreciation of the Portfolio. It is the Co-Advisors' view
that the recent correction in oil and gas prices and the corresponding decline
in the equity prices of both oil and gas royalty trusts and corporations has
provided the Fund with an attractive opportunity to increase its exposure to
high quality issuers operating in this industry.
    On an annualized basis, the current distribution rate of $1.32 per Unit
represents a cash-on-cash yield of approximately 14% based on a Unit market
price of $9.22 as at September 16, 2008. As at August 31, 2008, the Fund
generated annualized returns of 29.9% for the past year, 7.9% for three years
and 17.1% since inception (assuming the reinvestment of distributions).

    
    ACTIVEnergy Income Fund trades on the Toronto Stock Exchange under the
    symbol AEU.UN.
    

    Certain statements in this press release may constitute forward-looking
information, including statements regarding cash-on-cash yield.
Forward-looking statements are subject to various risks and uncertainties that
could cause estimates to differ materially from the expectations expressed,
including the risk that the per Unit distributions may decrease below the
amount used in calculating the cash-on-cash yield, which could occur for
various reasons beyond the control of the Fund such as a decrease in the
distributions paid by the issuers of securities included in the Fund's
portfolio or a change in general economic conditions. The forward-looking
information contained in this press release constitutes the Fund's current
estimate, as of the date of this press release, with respect to the matters
covered hereby. Investors and others should not assume that any
forward-looking statement contained in this press release represents the
Fund's estimate as of any date other than the date of this press release.





For further information:

For further information: or to obtain a copy of the prospectus, please
visit our website at www.middlefield.com or contact Nancy Tham, Senior
Vice-President, at (416) 847-5349 or toll-free at 1-888-890-1868


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