CCS Income Trust Elaborates on Valuation Disclosure Related to the Proposed Going Private Transaction



    CALGARY, Aug. 23 /CNW/ - CCS Income Trust (TSX: CCR.UN) is providing
additional information relating to the FirstEnergy Capital Corp. valuation of
the units of the Trust and, in particular, is providing additional disclosure
regarding the terminal value calculation in the valuation contained in the CCS
Management Information Circular dated August 3, 2007. The following is being
provided for clarification and does not change the valuation or its
conclusions.
    FirstEnergy has advised CCS Income Trust that the terminal value used in
the discounted cash flow approach in the FirstEnergy valuation was calculated
by applying a multiple to a "normalized" terminal year earnings before
interest, income taxes, depreciation and amortization ("EBITDA") of
approximately $775 million for the base case. As described in the Management
Information Circular, FirstEnergy applied an 8 times multiple to EBITDA, and
the terminal value was then discounted at the weighted average cost of capital
from the terminal year. FirstEnergy ran and considered sensitivities with both
higher and lower EBITDA and in FirstEnergy's professional judgment deemed its
estimated normalized EBITDA to be the most appropriate.
    FirstEnergy's professional judgment included consideration of the
potential future and historical growth, analysis of periods prior to June 30,
2017, the assumed growth up to June 30, 2017, the potential future growth
beyond June 30, 2017, potential business cyclicality and risk, the increasing
taxability of CCS through the forecast period (and the impact this would have
on valuation), appropriate discount rates and other value considerations.
    Based upon and subject to the analyses, assumptions, qualifications and
limitations set out in the valuation (the full text of which is attached as
Appendix D to the Management Information Circular), FirstEnergy was of the
opinion that, as of August 2, 2007, the fair market value of the units was in
the range of Cdn. $45.00 to Cdn. $52.00 per unit.
    FirstEnergy believes that its analyses must be considered as a whole and
that selecting portions of its analyses and/or factors considered by it
without considering all factors and analyses together could create a
misleading view of the process employed, and that its analyses are not
necessarily amenable to partial analysis or summary description. Any attempt
to do so could lead to undue emphasis on a particular factor or analysis.
    The valuation is not a recommendation as to how the securityholders
should vote at the Meeting. The valuation is qualified in its entirety by the
full text of the valuation. Securityholders are urged to read the valuation in
its entirety. The information concerning the valuation should be read in
conjunction with the CCS Income Trust Management Information Circular.
    The special meeting of unitholders of the Trust and exchangeable
shareholders of CCS Inc. is scheduled to be held at 9:00 a.m. (Calgary time)
on Wednesday, September 5, 2007 in Rooms 104-106 of the Telus Convention
Centre, North Building, 136 - 8th Avenue SE, Calgary, Alberta. Securityholders
are encouraged to attend the special meeting in person or by proxy. The
deadline for receipt of proxies from registered securityholders is 5:00 p.m.
(Toronto time) on August 31, 2007. Non-registered securityholders are subject
to earlier deadlines imposed by their intermediaries.

    About CCS Income Trust

    CCS Income Trust (TSX: CCR.UN) is a recognized industry leader providing
integrated and environmentally responsible solutions along with other
complementary energy services. Headquartered in Calgary, Alberta, CCS provides
a diverse number of services across four divisions. CCS Energy Services
provides oilfield waste treatment, recovery and disposal. The second division,
HAZCO Environmental Services, provides integrated remediation, waste
management and decommissioning solutions. The third division, Concord Well
Servicing, manages well completions, workovers and abandonments utilizing a
fleet of 140 service rigs. The CCS Energy Marketing division provides crude
oil and condensate marketing services to CCS Energy Services and third
parties.

    Forward-looking statements

    This news release contains "forward-looking statements" within the
meaning of applicable securities laws relating to the proposal to take the
Trust private, including statements regarding the terms and conditions of the
proposed transaction, and receipt of distributions of the Trust. Readers are
cautioned not to place undue reliance on forward-looking statements. Actual
results and developments may differ materially from those contemplated by
these statements depending on, among other things, the risks that the parties
will not proceed with a transaction, that the ultimate terms of the
transaction will differ from those that currently are contemplated, and that
the transaction will not be successfully completed for any reason (including
the failure to obtain the required approvals or clearances from regulatory
authorities). The statements in this news release are made as of the date of
this release. We undertake no obligation to comment on analyses, expectations
or statements made by third parties in respect of the Trust, its financial or
operating results or its securities.

    %SEDAR: 00017961E




For further information:

For further information: Investors, David Werklund, President and Chief
Executive Officer, CCS Income Trust, Phone: (403) 233-7565; Marshall McRae,
Chief Financial Officer, CCS Income Trust, Phone: (403) 231-1103; Media, David
Ryan, Longview Communications, Phone: (604) 694-6031

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