Newalta to Acquire Canada's Largest Lead Recycling Facility

    TSX Trading Symbol: NAL.UN

    CALGARY, Sept. 14 /CNW/ - Newalta Income Fund ("Newalta") today announced
that it has signed a purchase agreement to acquire the operating assets of
Montreal, Québec-based Nova Pb Inc. ("Nova") for $55 million, consisting of
$45 million in cash with the balance payable by the issuance of trust units of
Newalta. Closing is expected to occur on November 1, 2007 and is subject to
certain conditions and the receipt of all regulatory approvals, including the
Toronto Stock Exchange. This transaction is immediately accretive to Newalta's
cash available for growth and distributions on a per trust unit basis. For the
trailing twelve month period ended March 31, 2007, Nova generated
approximately $58 million in revenue.
    Nova operates Canada's largest integrated lead battery recycling facility
located on a 20 hectare (50 acre) site in Ville Ste-Catherine, Québec, on the
south shore of Montreal, 12 kilometres from Newalta's new transfer station in
Chateauguay. This facility has the capacity, with two long-body rotary kilns,
to process up to 200,000 tonnes of used batteries and can produce up to
100,000 tonnes of recycled lead per year. Nova employs 115 people and is a
leading supplier of custom lead alloys to the automotive and industrial
battery manufacturing industries. "Nova Pb" brand lead is an LME (London Metal
Exchange) approved and traded brand.
    This acquisition expands Newalta's services and adds processing
capability to Newalta's eastern Canada facility network. While Nova is
currently operating at 50% capacity, with only one of its kilns in operation,
there are numerous opportunities to add value using Newalta's national
facility network to drive additional batteries to the facility. Nova's
shareholders are confident that Newalta is best positioned to take the
business to a new stage of growth creating enhanced opportunities for Nova
    "The addition of Nova's industry-leading operations and experienced
people doubles Newalta's presence in Québec, provides tremendous opportunity
to expand our market coverage in the province, and diversifies our services
for our customers in eastern Canada," said Al Cadotte, President and Chief
Executive Officer of Newalta. "This transaction provides further stability to
our cash flows and immediate value to our investors, and adds another new
recovery process technology for us."

    About the North American Lead Recycling Market
    With a recycling rate of over 97%, lead has the highest secondary
production rate of all recycled materials, producing a stable and predictable
supply of scrap lead-acid batteries for North American lead recyclers.
    As a result of environmental concerns associated with lead mining and
disposal, lead production from secondary sources such as scrap lead-acid
batteries, is becoming increasingly popular. Recycled, or secondary lead, is
identical in every respect to lead that is mined from its original source.
    Increasing automobile production is expected to continue to drive demand
for lead. There are now over 100 million automotive batteries sold in the US
and Canada and the shipment of lead-acid batteries for industrial
applications, such as stationary or stand-by power, also continues to grow
every year. Over 1.5 million tonnes of lead is consumed in North America for
use in the battery industry alone.
    For further information on Nova, please visit

    Newalta Income Fund is one of Canada's leading industrial waste
management and environmental services companies and focuses on maximizing the
value inherent in industrial waste through the recovery of saleable products
and recycling. It also provides environmentally sound disposal of solid,
non-hazardous industrial waste. With talented people and a national network of
facilities, Newalta serves customers in the automotive, forestry,
manufacturing, mining, oil and gas, petrochemical, pulp and paper, steel and
transportation service industries. Providing solid investor returns,
exceptional customer service, safe operations and environmental stewardship
has enabled Newalta to expand into new service sectors and geographic markets.
Newalta Income Fund's units trade on the TSX as NAL.UN. For more information,

    This news release may contain forward-looking statements relating to
future operating results of the proposed acquired business, the benefits to
Newalta of the proposed acquisition, the success of integrating such business
into Newalta's national facility network and the timing of closing of the
proposed transaction. These statements are based on current views and
expectations of management that are subject to risks, uncertainties and
assumptions that are difficult to predict, including risks, uncertainties and
assumptions relating to general market conditions of the industries in which
the proposed acquired business relies on for raw materials and into which
finished products are sold, future operating results, the ability to integrate
the acquisition into Newalta's facility network, the completion of the
proposed acquisition and future capital needs. Actual results might differ
materially from results suggested in any forward-looking statements whether as
a result of new information, future developments or otherwise.

For further information:

For further information: Anne M. MacMicken, Director, Investor
Relations, (403) 806-7019; Ronald Sifton, Executive Vice President and Chief
Financial Officer, (403) 806-7020

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