K-Bro Linen Income Fund announces signing of operating room linen contract extension with Capital Health in Edmonton



    
    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
    SERVICES/
    

    EDMONTON, April 24 /CNW/ - (TSX:KBL.UN) - K-Bro Linen Income Fund (the
"Fund") and K-Bro Linen Systems Inc., the Fund's operating subsidiary
("K-Bro"), announced the signing of a contract extension to December 31, 2010
on its operating room linen contract with Capital Health. Capital Health is
part of Alberta Health Services and is one of the largest integrated health
regions in Canada providing complete health services to residents in the
greater Edmonton region and specialized services to people across central and
northern Alberta. The operating room linen contract encompasses a
comprehensive reusable linen program that initially commenced in 1996. K-Bro's
primary contract with Capital Health for the provision of general linen
services currently runs to December 31, 2010.
    "Our reusable operating linen programs are a significant part of our
business and we're very pleased to receive an extension of this important
contract", said Linda McCurdy, President and CEO. "This contract extension
allows us to continue providing Capital Health with what we believe is an
environmentally friendly program that is cost effective and provides enhanced
personnel comfort."

    Corporate Profile

    K-Bro is the largest owner and operator of laundry and linen processing
facilities in Canada. K-Bro provides a comprehensive range of general linen
and operating room linen processing, management and distribution services to
healthcare institutions, hotels and other commercial accounts. Of its total
revenue, approximately 76% is from long-term healthcare contracts with the
remaining 24% from hospitality and commercial contracts. K-Bro currently has
processing plants in six Canadian cities: Toronto, Edmonton, Calgary,
Vancouver, Victoria and Quebec City.

    Notice to Readers

    This news release contains forward-looking information that represents
internal expectations, estimates or beliefs. Certain statements contained
within this news release constitute forward-looking statements. The use of any
of the words "anticipate", "continue", "expect", "may", "will", "project",
"should", "believe", and similar expressions are intended to identify forward
looking statements. The expectations, estimates and beliefs contained in such
forward-looking statements necessarily involve known and unknown risks and
uncertainties which may cause the Fund's actual performance and financial
results in future periods to differ materially from any expectations,
estimates and beliefs of future performance or results expressed or implied by
such forward-looking statements. These risks and uncertainties include, among
other things, K-Bro's competitive environment, labour costs and stability,
utility costs, integration of acquisitions, K-Bro's dependence on long-term
contracts, the availability of future financing, the impact of the federal
government's tax changes for income trusts and such other risks and
uncertainties as described in the Fund's periodic reports filed with Canadian
securities regulatory authorities. Accordingly, unitholders and potential
investors are cautioned that events or circumstances could cause actual
results to differ materially from those discussed. The Fund does not undertake
any obligation to publicly revise these forward-looking statements to reflect
subsequent events or circumstances, except as required by applicable law.

    %SEDAR: 00021539E




For further information:

For further information: Linda McCurdy, President & CEO, K-Bro Linen
Income Fund, Phone: (780) 453-5218; Doug Thomson, FCA, Vice-President & CFO,
K-Bro Linen Income Fund, Phone: (780) 453-5218


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890