Richards Packaging Income Fund Announces 2009 Third Quarter Results And The
Resumption of Distributions

TORONTO, Oct. 30 /CNW/ - Richards Packaging Income Fund (TSX: RPI.UN) (the "Fund") announced today results for the quarter ended September 30, 2009 and the resumption of Unit distributions.

"Third quarter results were a mirror image of last year with EBITDA(1) increasing $0.2 million, ignoring the 2008 reorganization costs, primarily through stronger gross profit margins. Net income was $5.4 million or 53.4cents per Unit, up $4.9 million over the same period in 2008, due primarily to gains on financial instruments ($5.7 million)" commented Gerry Glynn, Chief Executive Officer.

Richards Packaging made six U.S. $1.0 million payments during the second and third quarters on the term debt with the funds diverted from distributions. We also repaid the $2.0 million borrowed on the revolving credit facility during the first quarter to invest in working capital. As at July 31, 2009 the U.S. denominated term loan was converted to a Canadian dollar debt at U.S./Cdn.$0.92 resulting in a realized gain of $0.1 million. Our leverage ratio improved during the last two quarters from 3.0:1 to 2.2:1, reflecting the repayments and the revaluation of the term debt upon conversion ($8.9 million) as a result of a 13 cents increase in the Canadian dollar from U.S./Cdn.$0.79. The Fund's distributable cash flow(2) sensitivity to foreign currency fluctuations is now $0.1 million for every U.S./Cdn 1 cents.

As a result, the Trustees of the Fund are pleased to announce today a return to the Fund's monthly cash distributions beginning for the month ended October 31, 2009 of Cdn$0.0655 per Unit to unitholders of record at the close of November 10, 2009, and will be payable on November 17, 2009. Unitholders who are non-residents of Canada may be required to pay all withholding taxes payable in respect of any distributions of income by the Fund, whether such distributions are in the form of cash or additional Units. Factors considered when setting this level included the Income Trust tax beginning in 2011, the current low interest rates and the cash needs of operations. Surplus distributable cash will be deployed to continue reducing the debt levels and to buyback Units.

Details of the Fund's results are currently available on Richards Packaging's website at www.richardspackaging.com and on SEDAR at www.sedar.com on October 31, 2009.

About Richards Packaging Income Fund

The Fund owns 85% of Richards Packaging Inc. the leading packaging distributor in Canada, and third largest in North America. Richards Packaging is a full-service packaging distributor targeting small- and medium-sized North American businesses. Richards Packaging has operated for over 95 years and currently serves over 9,000 regional food, wine and spirits, cosmetic, specialty chemical, pharmaceutical and other companies from 19 locations throughout North America.

    
    (1) Management defines EBITDA as earnings before amortization, interest,
        unrealized gain/loss on financial instruments and taxes. EBITDA is
        the same as income before under noted items, income taxes and non-
        controlling interests as outlined in the interim consolidated
        financial statements. Management believes that in addition to net
        income, EBITDA is a useful supplemental measure for investors of
        earnings available for distribution prior to debt service, capital
        expenditures and taxes. Management uses this measure as a starting
        point in the determination of earnings available for distribution to
        unitholders and exchangeable shareholders. In addition, EBITDA is
        intended to provide additional information on the Fund's operating
        performance. This earnings measure should not be construed as an
        alternative to net income or as an alternative to cash flow from
        operating, investing and financing activities as a measure of the
        Fund's liquidity and cash flows. EBITDA does not have a standardized
        meaning prescribed by GAAP and therefore the Fund's method of
        calculating EBITDA may not be comparable to similar measures
        presented by other companies or income trusts.

    (2) Management defines distributable cash flow, in accordance with the
        Richards Packaging's credit agreement, as EBITDA less interest, cash
        income tax expense, maintenance capital expenditures and loan
        payments. The objective of presenting this measure is to calculate
        the amount which is available for distribution to unitholders and
        exchangeable shareholders. Investors are cautioned that distributable
        cash flow should not be construed as an alternative to cash flow from
        operating, investing and financing activities as a measure of the
        Fund's liquidity and cash flows. Distributable cash flow does not
        have a standardized meaning prescribed by GAAP and therefore the
        Fund's method of calculating distributable cash flow may not be
        comparable to similar measures presented by other income trusts.

    (3) Management defines payout ratio as distributions and dividends
        declared over distributable cash flow(2). The objective of presenting
        this measure is to calculate the percentage of actual distributions
        in comparison to the amount available for distribution. Payout ratio
        does not have a standardized meaning prescribed by GAAP. The Fund's
        method of calculating the payout ratio may not be comparable to
        similar measures presented by other income trusts.

    (4) This release contains certain forward looking information and
        statements within the meaning of applicable securities laws
        (collectively "Statements") regarding future growth potential,
        results of operations, performance and business prospects and
        opportunities of the Fund. The Statements are frequently identified
        by the use of such words as "will", "may", "could", "expect", "plan",
        "anticipate", "believe" and other similar terminology. These
        Statements reflect management's current beliefs and are based on
        information currently available to the management of Richards
        Packaging. A number of factors could cause actual events or results
        to differ materially from those predicted, expressed or implied in
        the Statements. Factors that could cause such differences include,
        among other things, changes in customer and supplier relationships,
        the extent and duration of the worldwide recession and the impact on
        order volumes and pricing, competition in the industry, inventory
        obsolescence, trade risks in respect to foreign suppliers and
        fluctuations in foreign exchange and interest rates. Although the
        Statements contained in this release are based upon what management
        believes to be reasonable assumptions, there can be no assurance that
        actual results will be consistent with these Statements. These
        Statements are made as of the date of this release and the Fund
        assumes no obligation to update or revise them to reflect new events
        or circumstances.
    

SOURCE Richards Packaging Income Fund

For further information: For further information: Gerry Glynn, Chief Executive Officer, Richards Packaging Inc., (905) 670-7760, gglynn@richardspackaging.com; Enzio Di Gennaro, Chief Financial Officer, Richards Packaging Inc., (905) 670-7760, edigennaro@richardspackaging.com


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