Coast Wholesale Appliances Enters Ontario Market

    Fund Executes Growth Strategy With Acquisition of Independent GTA
    Appliance Dealer

    TRADING SYMBOL: Toronto Stock Exchange - CWA.UN

    VANCOUVER, Oct. 31 /CNW/ - Coast Wholesale Appliances Income Fund (the
Fund) today announced that its indirect subsidiary, Coast Wholesale Appliances
LP (Coast), has reached a tentative agreement to purchase the assets and
business of independent Ontario appliance dealer Morley's Appliance Centre.
This transaction is expected to be completed, subject to due diligence and
other customary conditions, by the end of the year. It will be financed by
Coast's existing acquisition term facility and is expected to be immediately
accretive to the Fund's EBITDA and distributable cash.
    Morley's operates one location situated in the Greater Toronto Area in
the Township of Vaughan. Founded in 1954, the business has a well-established
customer base across the developer, builder, designer and retail markets, and
currently generates annual sales revenues of approximately $11 million.
    This transaction is in keeping with one of the Fund's key strategic
objectives - expanding the business of Coast into Eastern Canada. Coast has
operated in Western Canada since 1978 and is a leading independent supplier of
major household appliances to developers and builders of multi-family and
single-family housing, and to retail customers. Coast currently has 15 stores
and four warehouse distribution centres located across the four western
    "We have been actively seeking and assessing acquisition opportunities in
Eastern Canada for some time and Morley's provides the right fit with our
business model and corporate culture," stated Blain Lawson, Chief Executive
Officer of Coast. "In addition to providing us with a well-established
foothold in the largest market in Canada, this well-located dealership will
allow us to generate incremental sales revenue growth by capitalizing on
Coast's buying power and the strong operating synergies that exist between the
two businesses. We look forward to building on Morley's excellent reputation
and customer base in Ontario." Lawson added that Coast intends to retain all
staff and management of Morley's.

    Fund profile

    Coast Wholesale Appliances Income Fund was created to acquire and hold a
65% indirect interest in Coast Wholesale Appliances LP and its results are
entirely dependent upon Coast's operating results. The remaining 35% interest
has been retained by the previous ownership. Since its inception, the Fund has
paid 40 consecutive monthly distributions to unitholders.

    Forward-looking statements

    This news release may contain forward-looking statements relating to
expected future events and financial and operating results of Coast that
involve risks and uncertainties. The actual results may differ materially from
management expectations as projected in such forward-looking statements for a
variety of reasons. These include market and general economic conditions, the
result of due diligence inquiries and negotiation of binding acquisition
documents, and the risks and uncertainties detailed from time to time in
Coast's continuous disclosure materials filed with Canadian securities
regulatory authorities, including the second quarter 2008 and year-end
Management's Discussion and Analyses filed at SEDAR ( These
forward-looking statements are based on assumptions that management considered
reasonable at the time they were prepared. Due to the potential impact of
these factors, Coast disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise, unless required by applicable law.

For further information:

For further information: Jack Peck, Chief Financial Officer, Telephone:
(604) 301-3400, Email:; Website:

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