WesternOne Equity Income Fund Announces the Completion of a Strategic Acquisition and 11.1% Distribution Increase



    /NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISSEMINATION IN THE US/

    VANCOUVER, June 1 /CNW/ - WesternOne Equity Income Fund ("WesternOne
Equity") (TSXV: WEQ.UN and WEQ.DB) today announced the completion of the
purchase of the assets and the business of Old Country Rentals Ltd. for
$8.0 million after closing adjustments, and subject to a post closing working
capital adjustment (the "Acquisition").
    Old Country Rentals is an equipment rentals business with two locations,
and is a leading player in the lower Vancouver Island equipment rental
industry.
    WesternOne Equity paid for the Acquisition using a combination of
existing cash and the issuance to Old Country Rentals Ltd. of 150,000 trust
units. This investment is expected to be immediately accretive to WesternOne
Equity's unitholders, by an initial projected increase of approximately
$2.3 million in annual EBITDA.
    Based on the expected accretiveness of the Acquisition, the Board of
Trustees has approved an 11.1% increase in the cash distribution, from $0.045
to $0.05 per trust unit effective July 1, 2007 (equivalent to $0.60 per trust
unit on an annualized basis).
    "This Acquisition allows us to make significant progress towards our 2007
objective of $50 million to $100 million of acquisitions at terms that are
accretive to our unitholders," said Mr. Darren Latoski, CEO of WesternOne
Equity, he adds that, "the Acquisition provides an excellent fit to our
existing rental business, WEQ Production Equipment LP, and we will continue to
look to consolidate in this industry under the Production Equipment and Old
Country Rentals brands in the future."
    In conjunction with our recently announced closing of $18.0 million
public offering of trust units, Management continues to work to generate
stable and growing distributions to its unitholders through building our
business conservatively with prudent financings, low debt leverage and
sensible distributions.

    About WesternOne Equity
    -----------------------
    WesternOne Equity has been established to seek out and acquire
predominantly privately owned businesses located primarily in the Western
Canadian provinces of British Columbia, Alberta and Saskatchewan, in order to
generate stable and growing distributions to its unitholders as well as to
achieve overall capital appreciation.
    Additional information about WesternOne Equity is available at www.weq.ca
or www.sedar.com.

    Forward-Looking Statements
    --------------------------
    Certain statements in this press release may constitute "forward-looking"
statements that involve known and unknown risks, uncertainties and other
factors that may cause our actual results, performance or achievements or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. When used in this press release, such statements often use, but
are not limited to, such words as "may", "will", "expect", "should",
"believe", "intend", "plan", "anticipate", "potential", and other similar
terminology. These statements reflect current expectations of WesternOne
Equity's management regarding future events and operating performance and
speak only as of the date of this press release. Forward-looking statements
involve significant risks and uncertainties, should not be read as guarantees
of future performance or results, and will not necessarily be accurate
indications of whether or not such results will be achieved. A number of
factors could cause actual results to differ materially from the results
discussed in the forward-looking statements, including, but not limited to,
the following factors: competitive and economic environment, impact of changes
to tax treatment of income trusts or dividend tax credits, foreign exchange,
seasonality, inability to close or realize accretive benefits from
acquisitions, fluctuation of cash distributions, nature of trust units and
unfavourable changes in capital markets. Although the forward-looking
statements contained in this press release are based upon what WesternOne
Equity's management believes to be reasonable assumptions, WesternOne Equity
cannot assure investors that actual results will be consistent with these
forward-looking statements. These forward-looking statements are made as of
the date of this press release and WesternOne Equity assumes no obligation to
update or revise them to reflect new events or circumstances.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.





For further information:

For further information: Robert Hibberd, Chief Financial Officer,
WesternOne Equity Income Fund, Suite 910, 925 West Georgia Street, Vancouver,
BC, V6C 3L2, Phone: (604) 678-4042, E-mail: rhibberd@weq.ca


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