Newalta Completes Conversion to Corporation



    TSX Trading Symbol: NAL

    CALGARY, Jan. 2 /CNW/ - Newalta Inc. ("Newalta") (TSX:NAL) announced that
on December 31, 2008, it completed the previously announced unitholder and
court approved conversion (the "Conversion") whereby all outstanding trust
units of Newalta Income Fund were exchanged for common shares in the capital
of Newalta on a one-for-one basis. The amalgamation of various subsidiary
operating entities of Newalta in connection with the Conversion was completed
on January 1, 2009.
    The common shares of Newalta will commence trading on the Toronto Stock
Exchange, under the symbol "NAL", on or about January 7, 2009. Concurrently,
the trust units of Newalta Income Fund will be delisted from the Toronto Stock
Exchange. The 7.0% convertible unsecured subordinated debentures of Newalta
will continue to trade under the symbol "NAL.DB".
    Former holders of trust units who are individuals will generally realize
a capital gain or loss as a result of the Conversion. The recent proposed
legislation released by the Department of Finance relating to the "stop loss"
rules contained in the Income Tax Act affects former holders of trust units
that are corporations, trusts or partnerships. As a result of these rules,
investors that held trust units in a corporation, trust or partnership will be
precluded from realizing a capital loss as a result of the Conversion if such
holders (or certain affiliated persons) hold shares of Newalta on January 30,
2009. The "stop loss" rules will not preclude an individual holder from
realizing a capital loss. Eligible holders that realize a gain on the
conversion may be able to defer such gains by making an election with Newalta
under section 85 of the Tax Act prior to March 31, 2009.

    Newalta Income Fund is Canada's largest industrial waste management and
environmental services provider and focuses on maximizing the value inherent
in industrial waste through the recovery of saleable products and recycling.
It also provides environmentally sound disposal of solid, non-hazardous
industrial waste. With talented people and a national network of facilities,
Newalta serves customers in the automotive, forestry, lead, manufacturing,
mining, oil and gas, petrochemical, pulp and paper, refining, steel and
transportation service industries. Providing solid investor returns,
exceptional customer service, safe operations and environmental stewardship
has enabled Newalta to expand into new service sectors and geographic markets.
Newalta Income Fund's units trade on the TSX as NAL.UN. For more information,
visit www.newalta.com.

    This news release contains statements that may constitute
"forward-looking information" or "forward-looking statements" (collectively,
"forward-looking information") within the meaning of applicable Canadian
securities legislation. Forward-looking information includes, among others,
statements regarding business strategy, plans and other expectations, beliefs,
goals, objectives, information and statements about possible future events.
Specific forward-looking information contained in this news release include
statements regarding listing and trading of the Newalta Inc. common shares and
debentures on the Toronto Stock Exchange. Readers are cautioned not to place
undue reliance on such forward-looking information. Forward-looking
information is based on current expectations and assumptions that involve a
number of risks, which could cause actual results to vary and in some
instances to differ materially from those anticipated by Newalta and described
in the forward-looking information contained in this news release. No
assurance can be given that any of the events anticipated by the
forward-looking information will transpire or occur or, if any of them do so,
what benefits Newalta will derive therefrom.





For further information:

For further information: Anne M. MacMicken, Executive Director, Investor
Relations, Phone: (403) 806-7019


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