Clearwater Seafoods Income Fund Provides Update on Previously Announced Going-Private Transaction



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

    HALIFAX, Oct. 8 /CNW/ - Clearwater Seafoods Income Fund (the "Fund")
(TSX: CLR.UN. CLR.DB, CLR.DB.A) announced today that the closing of the
previously announced transaction pursuant to which CS Acquisition Limited
Partnership (the "Purchaser"), a partnership owned by a consortium led by
Clearwater Fine Foods Inc., would acquire the business of the Fund and
unitholders would receive $4.50 per unit in cash scheduled for October 17,
2008 has been delayed. The delay is a result of the announcement yesterday
night by the Icelandic government that Glitnir Banki hf has been placed into
receivership creating uncertainty as to whether or not they will be able to
meet their committment to provide approximately 10 per cent of the financing
required to complete the transaction. In addition, the Fund will not be able
to satisfy certain conditions precedent contained in the transaction agreement
with the Purchaser which, unless waived, would allow Purchaser as well as its
financing sources to terminate their respective obligations with respect to
the transaction.
    The Fund is working diligently with the Purchaser and its financing
sources, including Glitnir, to address these issues in an effort to close the
transaction on or before October 31, 2008, the outside date for the closing of
the transaction under the transaction agreement. However, the Fund cannot
guarantee that a suitable resolution will be reached or that the transaction
will close.

    Commentary regarding forward-looking statements

    This news release contains forward-looking statements, including in
connection with the transactions contemplated by the transaction agreement.
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,
including, but not limited to, that the parties will not satisfy (or waive)
the closing conditions of the transaction, that the financing for the
transaction will not be obtained and/or that the transactions contemplated by
the transaction agreement will not be successfully completed for any other
reason. These statements are also based on various assumptions, including that
the various closing conditions set forth in the transaction agreement will be
satisfied or waived, that the financing for the transaction will be obtained
and that the transaction will close. 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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