Clearwater Seafoods Income Fund Provides Update on Strategic Review and Distributions


    HALIFAX, Jan. 21 /CNW/ - (TSX:CLR.UN): Clearwater Seafoods Income Fund
(the "Fund") announced today that it has appointed BMO Nesbitt Burns as its
financial advisor for the strategic review it announced on November 14, 2007.
The objective of the strategic review, which commenced during the fourth
quarter of 2007, is to identify and consider strategic alternatives available
to maximize unitholder value. There can be no assurance that the review
process will result in a decision regarding any transaction, or that it will
be completed in any specific time frame.
    "The seafood industry is constantly changing whether it be due to the
kinds of innovations in technology that Clearwater has pioneered throughout
its history, or environmental changes, or economic realities, or a host of
other variables. Over the course of its 31-year history, Clearwater has
remained a leader because of its ability to be flexible. We recognize,
however, that the current structure of the Fund poses challenges as a result
of recent weak financial performance, the need to maintain distributions and
the Canadian government income trust legislation which inhibits the Fund's
ability to raise capital and grow and which will impose a tax on all income
trusts commencing in 2011. We are therefore working with our financial
advisors to consider strategies to maximize value for our unitholders and
foster the long term growth of our business", stated Tom Traves, Chairman of
the Fund. The trustees also indicated that Clearwater Fine Foods Incorporated
("CFFI"), which owns 48% of Clearwater Seafoods Limited Partnership ("CSLP")
has advised that it continues to review its options.
    Stan Spavold, Executive Vice-President of CFFI stated, "Clearwater
remains an important strategic investment for CFFI and we continue to believe
in the long term prospects of the business. We have come to the belief that
the current structure of CSLP is inhibiting the ability of CSLP to grow and
respond to its current challenges."
    The Fund also announced that, having distributed $0.60 per unit in 2007,
and distributing cash in excess of the amounts generated in 2007, it will
suspend monthly cash distributions. The Fund's performance in 2007 was
affected by the strengthening of the Canadian dollar, vessel disruptions in
the clam fleet, and lower-than-expected sales. The trustees and directors have
also agreed that upon completion of the strategic review, if the company
remains in its current structure, distributions will be determined quarterly
and paid in arrears after considering the traditional criteria in determining
the distribution policy. This distribution policy change will not impact
Clearwater's outstanding convertible debentures. Clearwater will continue to
pay interest semi-annually on the convertible debentures at their regularly
scheduled dates.

    About Clearwater

    Clearwater is recognized for its consistent quality, wide diversity and
reliable delivery of premium seafood, including scallops, lobster, clams, cold
water shrimp, crab and groundfish.
    Since its founding in 1976, Clearwater has invested in science, people,
technology, resource ownership and resource management to preserve and grow
its seafood resource. This commitment has allowed it to remain a leader in the
global seafood industry.
    %SEDAR: 00018023E

For further information:

For further information: Robert Wight, Chief Financial Officer,
Clearwater, (902) 457-2369; Tyrone Cotie, Director of Corporate Finance and
Investor Relations, Clearwater, (902) 457-8181

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