Badger Income Fund releases United States tax information


    CALGARY, March 6 /CNW/ - Badger Income Fund today released information
necessary for 2006 United States ("U.S.") tax reporting. We believe for U.S.
federal income tax purposes, that the units of Badger Income Fund more likely
than not will be properly classified as equity in a corporation, rather than
as debt, and that dividends paid to its individual U.S. unitholders will more
likely than not be qualified dividends. As such, the portion of the
distributions made during 2006 that are considered dividends should qualify
for the reduced rate of tax applicable to certain capital gains.
    The portion of the trust distributions that is considered a dividend for
U.S. income tax purposes is determined based upon the greater of Badger Income
Fund's current or accumulated earnings and profits ("E&P") as determined in
accordance with U.S. income tax principals.
    With respect to cash distributions declared in 2006 to U.S. individual
unitholders, 100 percent should be reported as qualified dividends.
    Badger Income Fund is not required to issue Form 1099 DIV's; however,
U.S. unitholders may have previously received a Form 1099 DIV from a broker or
intermediary that may not be correct. As a result of this, U.S. unitholders
should consult their brokers and tax advisors to ensure that this information
is accurately reflected on their tax returns. Brokers and/or intermediaries
may or may not be required to issue amended Form 1099 DIVs. Readers should
consult their own legal or tax advisors as to their particular tax consequence
of holding Badger Income Fund units.
    Canadian resident taxpayers should note that the above information has no
impact on any disclosed Canadian tax information.

    Badger Income Fund is an open-ended trust that is North America's largest
provider of non-destructive excavating services. Badger traditionally works
for contractors and facility owners in the utility and petroleum industries.
Our key technology is the Badger Hydrovac, which is used primarily for safe
digging in congested grounds and challenging conditions. The Badger Hydrovac
uses a pressurized water stream to liquefy the soil cover, which is then
removed with a powerful vacuum system and deposited into a storage tank.
Badger manufactures its truck-mounted hydrovac units.
    Badger Income Fund's business model involves the provision of excavating
services through two distinct entities: the Operating Partners (franchisees in
the United States and agents in Canada), and Badger Corporate. Badger
Corporate works with its Operating Partners to provide Hydrovac service to the
end user. In this partnership, Badger provides the expertise, the trucks, and
North American marketing and administration support. The Operating Partners
deliver the service by operating the equipment and developing their local
markets. All work is invoiced by Badger and then shared with the Operating
Partner based upon a revenue sharing formula. In limited locations Badger has
established corporate run operations to market and deliver the service in the
local area.

    This press release contains forward-looking statements subject to various
risk factors and uncertainties, which may cause the actual results,
performances or achievements of Badger to be materially different from any
future results, performances or achievements expressed or implied by such
forward-looking statements. Such factors include, but are not limited to,
fluctuations in the market for oil and gas related products and services,
political and economic conditions, the demand for services provided by Badger,
industry competition and Badger's ability to attract and retain key personnel.

    The Toronto Stock Exchange has neither approved nor disapproved the
    information contained herein.

    %SEDAR: 00020566E

For further information:

For further information: Tor Wilson, President and CEO, 2820, 715 - 5th
Avenue SW, Calgary, Alberta, T2P 2X6; Greg Kelly, CA, Vice President Finance
and CFO, Phone (403) 264-8500, Fax (403) 228-9773

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