K-Bro Linen Income Fund announces long term contract signings and contract
extensions in Vancouver


EDMONTON, June 8 /CNW/ - (TSX:KBL.UN) - K-Bro Linen Income Fund (the "Fund") and K-Bro Linen Systems Inc., the Fund's operating subsidiary ("K-Bro"), announced the signings of ten year contracts with Vancouver Coastal Health Authority ("VCHA"), Fraser Health Authority ("FHA"), Provincial Health Services Authority and Providence Health Care Society as a result of K-Bro being a successful proponent under a competitive Request for Proposal process begun last December. Service for the majority of the new volume is expected to commence in November, 2010. The contracts are renewable for a further five years at the customer's option. Certain existing contracts with VCH and FH were extended to November, 2015 as part of this process.

The new contracts are expected to generate annual revenue of approximately $5 million. They encompass a comprehensive linen supply and service program covering general and specialty linens as well as on site services at certain facilities.

"It is extremely gratifying to again be chosen to provide a comprehensive service program to facilities under the auspices of the major Vancouver healthcare institutions", said Linda McCurdy, President and CEO. "We are committed to providing them with a level of service, innovation and cost effectiveness that hopefully will see K-Bro servicing their needs for many years beyond the original contract term."

Corporate Profile

K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently has seven processing plants in six Canadian cities: Toronto, Edmonton, Calgary, Vancouver, Victoria and Quebec City.

Notice to Readers

This news release contains forward-looking information within the meaning of applicable securities laws. The use of any of the words "anticipate", "continue", "expect", "may", "will", "project", "should", "believe", and similar expressions suggesting future outcomes or events are intended to identify forward-looking information. Statements regarding such forward-looking information reflect management's current beliefs and are based on information currently available to management.

These statements are not guarantees of future performance and are based on management's estimates and assumptions that are subject to risks and uncertainties, which could cause K-Bro's actual performance and financial results in future periods to differ materially from the forward-looking information contained in this press release. These risks and uncertainties include, among other things, (i) K-Bro's competitive environment; (ii) utility costs; (iii) K-Bro's dependence on long-term contracts with the attendant renewal risk, (iv) increased capital expenditure requirements; (v) reliance on key personnel; and (vi) the availability of future financing. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include: (i) volumes and pricing assumptions; (ii) utility costs; (iii) expected impact of labour cost initiatives; and, (iv) the level of capital expenditures. Although the forward-looking information contained in this news release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Certain statements regarding forward-looking information included in this news release may be considered "financial outlook" for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this news release.

All forward-looking information in this news release is qualified by these cautionary statements. Forward-looking information in this news release is presented only as of the date made. Except as required by law, K-Bro does not undertake any obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

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SOURCE K-Bro Linen Inc.

For further information: For further information: Linda McCurdy, President & CEO, K-Bro Linen Income Fund, Phone: (780) 453-5218; Doug Thomson, FCA, Vice-President & CFO, K-Bro Linen Income Fund, Phone: (780) 453-5218

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