Algonquin Power Income Fund announces amalgamation with Highground Capital Corp.



    TORONTO, July 29 /CNW/ - Algonquin Power Income Fund ("APIF" or
"Algonquin Power") announced today that shareholders of Highground Capital
Corp. ("Highground") have approved the previously disclosed business
combination at a special meeting of shareholders held yesterday, July 28,
2008, with over 99% of the shares voted at the meeting being cast in favour of
the amalgamation transactions (the "Transactions").
    Following completion of the Transactions scheduled to occur on August 1,
2008, shareholders of Highground will receive 0.9749 trust units in the
capital of Algonquin Power for each share currently held in Highground.
Algonquin Power will issue approximately 3.5 million trust units and will
receive between $7.71 and $8.14 per unit, comprised of cash (in an amount
between $22.2 and $23.7 million, dependent on the final proceeds of
realization of certain Highground investments) together with the return of
notes with an aggregate face value of approximately $4.8 million issued by
APIF affiliates related to its St. Leon and Brampton Cogeneration projects as
consideration.

    About Algonquin Power

    Algonquin Power is an open-ended investment trust that owns and has
interests in a diverse portfolio of renewable power generation and sustainable
infrastructure assets across North America, including 42 renewable energy
facilities, 12 thermal energy facilities, and 17 water distribution and
waste-water facilities. Algonquin Power was established in 1997 to provide
stable earnings through a diversified portfolio of renewable energy assets.
Algonquin Power's units and convertible debentures are traded on the Toronto
Stock Exchange under the symbols APF.UN, APF.DB and APF.DB.A and such units
are included in the S&P/TSX Composite Index.

    About Highground

    Highground Capital Corp. actively pursues strategic growth opportunities
that meet critical long term community needs in the infrastructure and
renewable power sectors. Highground Capital Corp.'s activities are typically
supported by assets which generate strong recurring revenue streams. The
common shares of Highground Capital Corp. trade on the TSX Venture Exchange
under the trading symbol HCC.

    Forward-Looking Statements

    Certain statements contained in the information herein are
forward-looking and reflect the views of APIF and Algonquin Power Management
Inc. (the "Manager") with respect to future events. Since forward-looking
statements address future events and conditions, by their very nature, they
involve inherent risks and uncertainties. Forward-looking statements are not
guarantees of APIF's future performance or results and are subject to various
factors, including, but not limited to, assumptions such as those relating to:
the performance of APIF's assets, commodity market prices, interest rates, and
environmental and other regulatory requirements. Although APIF and its Manager
believe that the assumptions inherent in these forward-looking statements are
reasonable, undue reliance should not be placed on these statements, which
apply only as of the dates hereof. The Fund and its Manager are not obligated
nor do either of them intend to update or revise any forward-looking
statements, whether as a result of new information, future developments or
otherwise.

    %SEDAR: 00009265E




For further information:

For further information: Kelly Castledine, Algonquin Power Income Fund,
(905) 465-4500; Jeff Norman, President., Highground Capital Corp., (905)
465-4547


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