Armtec Announces Acquisition of BURNCO's Concrete Products Subsidiary



    Toronto Stock Exchange: ARF.UN

    GUELPH, ON, July 21 /CNW/ - Armtec Infrastructure Income Fund (the
"Fund") (TSX: ARF.UN) today announced that the Fund has entered into an
agreement to acquire the shares of BURNCO Concrete Products Ltd. ("BURNCO
Concrete") from the BURNCO Group of Companies. The purchase price payable for
BURNCO Concrete is approximately $50 million, excluding transaction costs and
working capital adjustments. The closing of the transaction is expected to
occur on or about July 31, 2008. Closing of the transaction is conditional on
a number of matters typical of a transaction of this type, including certain
regulatory approvals.
    BURNCO Concrete produces a wide variety of precast concrete products and
pre-mixed package products, including office and warehouse insulated wall
panels, high-rise office panels, architectural wall panels, steps, stairwells
and pre-mixed concrete, mortars, stuccos, cements and hollowcore. BURNCO
Concrete has four facilities located in Calgary and Edmonton and employs
approximately 260 employees. The Company supplies precast concrete and
packaged products to the Alberta infrastructure, residential and warehouse
markets.
    "The acquisition of BURNCO Concrete is another important step in our
strategic growth plan for the Fund," said Charles Phillips, President and
Chief Executive Officer. "With facilities in Calgary and Edmonton, BURNCO
Concrete significantly expands the Con-Force division's standard product
offering in Alberta and further extends our product diversity. It adds
industrial wall panels and hollowcore products to Con-Force's Alberta
operations and brings a strong residential and standard products business.
This acquisition in conjunction with the addition of AE Concrete and Brooklin
Concrete Products, is a key part of our strategy to develop a stronger precast
standard products base and expand our product offerings across the markets we
serve."

    About Armtec Infrastructure Income Fund

    The Fund is a leading manufacturer and marketer of a broad range of
infrastructure products and engineered bridging solutions for application in a
diverse cross-section of industries. These include the public infrastructure
market and private sector markets such as natural resources, commercial
building, residential construction and agricultural drainage. The Fund's
Armtec division is Canada's only national multi-material manufacturer
specializing in corrugated high density polyethylene pipe, and corrugated
steel pipe for drainage applications and highly engineered solutions including
bridging products and water management systems. The Con-Force division designs
and manufactures a wide range of bridging and construction products, including
the advanced "NU" bridge girder system that allows for some of the longest
spans available in precast concrete technology. The Durisol division designs
and manufactures highway noise barriers and related infrastructure products,
such as retaining walls and acoustic enclosures, and is recognized as the only
fully qualified supplier of absorptive material in Ontario.

    Forward-Looking Statements

    This news release contains certain statements that constitute
forward-looking information within the meaning of applicable securities laws
("forward-looking statements"). All statements other than statements of
historical fact contained herein are forward-looking statements, including,
without limitation, statements regarding the BURNCO Concrete acquisition and
statements regarding the business strategy, plans and objectives of or
involving the Fund or the businesses in which it has invested. Prospective
investors can identify many of these statements by looking for words such as
"believe", "expects", "will", "intends", "plans", "projects", "anticipates",
"estimates", "continues" and similar words or the negative thereof. There can
be no assurance that the plans, intentions or expectations upon which these
forward-looking statements are based will occur. Although management believes
that the expectations represented in such forward-looking statements are
reasonable, there can be no assurance that such expectations will prove to be
correct.
    By their nature, forward-looking statements require assumptions and are
subject to inherent risks and uncertainties, including those discussed herein.
There is significant risk that forward-looking statements will not prove to be
accurate. You are cautioned not to place undue reliance on forward-looking
statements made herein because a number of factors could cause actual future
results, conditions, actions or events to differ materially from the targets,
expectations, estimates or intentions expressed in the forward-looking
statements.
    The future outcomes that relate to forward-looking statements may be
influenced by many factors, including but not limited to: industry
cyclicality; competition; reduction in demand for products; collection from
customers; relationships with suppliers; lack of long-term agreements;
expiration of rights under licence and distribution arrangements; raw material
price volatility; product liability; intellectual property; reliance on key
personnel; environmental; collective bargaining; interest rates; uninsured and
underinsured losses; operating hazards; risks of future legal proceedings;
dependence on other Fund subsidiaries; income tax matters; leverage and
restrictive covenants; credit facilities; nature of units; distribution of
securities on redemption or termination of Fund; restrictions on potential
growth; effect of market interest rates on price of Units; undiversified and
illiquid holdings in Armtec Operating Trust; potential dilution; and various
risks relating to the BURNCO Concrete acquisition, including risks relating to
completion of the acquisition (such as satisfaction by both Armtec and the
vendor of the conditions to closing) and integration and realization of
expected synergies, BURNCO Concrete's reliance on key personnel, potential
undisclosed liabilities associated with the BURNCO Concrete acquisition, and
the Fund's limited recourse against the vendor of BURNCO Concrete. You are
cautioned that the foregoing list of factors is not exhaustive and that when
relying on forward-looking statements to make decisions with respect to the
Fund, investors and others should carefully consider these factors, as well as
other uncertainties and potential events, and the inherent uncertainty of
forward-looking statements.
    The forward-looking statements contained herein are expressly qualified
in their entirety by this cautionary statement. The Fund undertakes no
obligation to publicly update or revise any forward-looking statements except
as expressly required by applicable securities law.
    Risks related to the Fund have been summarized in the Fund's latest
Annual Information Form, Management's Discussion and Analysis included in the
Annual Report and quarterly financial reports available on www.sedar.com or
the Fund's web site at www.armtecincomefund.com.





For further information:

For further information: Charles M. Phillips, President & Chief
Executive Officer, Armtec Limited Partnership, Tel: (519) 822-0210, Fax: (519)
822-8894; James R. Newell, Chief Financial Officer, Armtec Limited
Partnership, Tel: (519) 822-0210, Fax: (519) 822-8894; Carrie Boutcher, Vice
President, Finance, Armtec Limited Partnership, Tel: (519) 822-0210, Fax:
(519) 822-8894

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ARMTEC INFRASTRUCTURE INCOME FUND

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