Clearwater Seafoods Income Fund Provides Update on Ongoing Strategic Review Process



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    HALIFAX, Oct. 28 /CNW/ - Clearwater Seafoods Income Fund (the "Fund")
(TSX: CLR.UN. CLR.DB, CLR.DB.A) and CS Acquisition Limited Partnership (the
"Purchaser") announced today that they will not be in a position to close the
previously announced transaction pursuant to which a partnership owned by a
consortium led by Clearwater Fine Foods Inc. ("CFFI"), would acquire the
business of the Fund.
    This announcement comes as a result of the unprecedented uncertainty and
volatility in global financial markets and, in particular, Glitnir Banki hf
being placed into receivership shortly before the anticipated closing in
October. Glitnir was to provide approximately 10 per cent of the financing
required to complete the transaction. Despite the parties' diligent efforts to
address the financing issues, the parties have been unsuccessful in arranging
alternative sources of financing, which was needed for the completion of the
transaction. The parties have terminated the transaction agreement and
confirmed that the going-private transaction will not be proceeding at this
time.
    Tom Traves, Chairman of the Trustees, speaking on behalf of the Fund,
stated, "The Trustees are disappointed that this disruption of the financial
markets did not allow the Fund and the consortium partners to complete the
transaction. However, we remain confident in the business and its prospects
for the long term. The Trustees will continue to work with CFFI to review
alternatives to maximize value for the unit holders."
    CFFI continues to be supportive of the Trustees' efforts. John Risley,
President of CFFI, stated "Clearwater has and will continue to be a long term
strategic investment for CFFI and we continue to believe in the long term
prospects of the business. We will continue to work with the Fund and its
advisors in reviewing its options as markets return to more normal
conditions."

    Commentary regarding forward-looking statements

    This news release contains forward-looking statements. Such statements
are subject to known and unknown risks, uncertainties, and other factors
outside management's control that could cause actual results to differ
materially from those expressed in the forward looking statements. These
statements are also based on various assumptions. The Fund does not assume
responsibility for the accuracy and completeness of the forward-looking
statements and does not undertake any obligation to publicly revise these
forward-looking statements to reflect subsequent events or circumstances,
other than as required by applicable laws.

    About Clearwater

    Clearwater is recognized for its consistent quality, wide diversity and
reliable delivery of premium seafood, including scallops, lobster, clams,
coldwater shrimp, crab and ground fish. Since its founding in 1976, Clearwater
has invested in science, people, technology, resource ownership and resource
management to preserve and grow its seafood resource. This commitment has
allowed it to remain a leader in the global seafood market.
    %SEDAR: 00018023E




For further information:

For further information: Robert Wight, Chief Financial Officer,
Clearwater, (902) 457-2369; Tyrone Cotie, Director of Corporate Finance and
Investor Relations, Clearwater, (902) 457-8181


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