Swiss Water Decaffeinated Coffee Income Fund Reports 2010 Third Quarter and
Year-to-Date Results

Nine-Month Processing Volumes, Revenues, EBITDA and Adjusted Distributable Cash Up Over 2009

TRADING SYMBOL: The Toronto Stock Exchange - SWS.UN

VANCOUVER, Nov. 4 /CNW/ - Swiss Water Decaffeinated Coffee Income Fund ("the Fund") today reported financial results for the three and nine months ended September 30, 2010. The three-month period represents the third quarter of its 2010 fiscal year. The Fund holds all of the outstanding securities of Swiss Water Decaffeinated Coffee Company, Inc. ("SWDCC" or "the company") and its results are dependent on the operating results of SWDCC.

Operating Results

In $000's except per unit amounts	3 Months Ended				9 Months Ended
	September 30				September 30
	2010		2009		2010		2009
Sales	$     8,487		$  7,529		$   24,267		$   22,525
Gross profit	1,410		1,282		4,117		4,319
EBITDA^(1)	1,016		1,026		3,442		2,598
Net income	251		1,206		199		2,344
Adjusted distributable cash^(1)	981		423		3,901		1,841
Distributions paid	600		601		1,802		3,605
Per unit amounts:
Net income per unit	0.038		0.181		0.030		0.351
Adjusted distributable cash generated per unit^(1)	0.147		0.063		0.584		0.276
Distributions paid per unit	0.090		0.090		0.270		0.540

(1) EBITDA, adjusted distributable cash and adjusted distributable cash per unit are non-GAAP financial measures that are defined in the Management's Discussion and Analysis to be posted on SEDAR on or before November 5, 2010.

SWDCC's business continued to strengthen during the third quarter despite the negative impact of higher coffee commodity prices, which are up by more than 34% since May 2010.  Year-over-year gains were recorded in all areas of its business, and across all geographic markets, with processing volumes for the three and nine months ended September 30, 2010 increasing by 5% and 10% respectively, and sales revenues rising by 13% for the third quarter and 8% for the year-to-date. EBITDA for the first nine months of 2010 was also up on a year-over-year basis, largely due to lower consumer promotion and advertising expenses this year. Adjusted distributable cash generated for the third quarter and year-to-date increased significantly over 2009, rising by 132% and 112%, respectively.

During the third quarter of 2010, SWDCC's sales revenue grew faster than its processing volumes due to the recent increases in coffee commodity prices. As the company sells green decaffeinated coffees at the current market price plus a processing fee, when coffee commodity prices rise, its revenues also grow. Nine-month revenues were not affected to the same degree, as the positive impact of higher coffee prices was partially offset by lower US dollar to Canadian dollar exchange rates.

During the first nine months of 2010, approximately 77% of SWDCC's sales were generated in US dollars, up from 72% in the same period last year. As the US dollar averaged $1.04 Canadian during the first three quarters of this year, compared to $1.17 for the same period in 2009, the company's year-to-date US sales were translated into Canadian dollars at a lower rate.

Third quarter gross profit totaled $1.4 million, compared to $1.3 million in Q3 2009. The year-over-year increase in sales revenue was partially offset by higher cost of goods sold, which rose with this year's larger processing volumes and higher green coffee commodity prices. Gross profit for the year-to-date was $4.1 million, down slightly from $4.3 million for the first three quarters of 2009. As in the third quarter, nine-month gross profit was negatively affected by an increase in cost of goods sold, which rose in tandem with higher year-over-year processing volumes and green coffee commodity prices.

Selling and administration expenses for the third quarter were up over last year, primarily due to an increase in market research costs. During the quarter, SWDCC commissioned new market research studies to help guide development of its corporate and marketing strategies. On a year-to-date basis, selling and administration costs were down compared to last year, due mainly to a significant decrease in consumer promotion and advertising costs. In 2009, SWDCC ran a consumer-oriented, multi-media marketing campaign to build awareness of the Swiss Water^® Process and its benefits. During 2010, the company has focused its marketing resources on building industry awareness of its improved product quality, via less expensive "trade" advertising. As a result, consumer promotion and advertising expenses for the nine months ended September 30, 2010 totaled $0.4 million, compared to $1.8 million for the same period last year.

EBITDA for the third quarter totaled $1.0 million in line with the 2009 level. Nine-month EBITDA was $3.4 million, up by $0.8 million, or 32%, over 2009, due mainly to the lower selling and administration expenses, as discussed above.

Adjusted distributable cash increased substantially in both the three and nine month periods ended September 30, 2010. During the third quarter of 2010, the Fund generated adjusted distributable cash of $1.0 million ($0.4 million in 2009) and paid $0.6 million to unitholders ($0.6 million in 2009), for a payout ratio of 61% (142% in 2009). During the first nine months of 2010, the Fund generated adjusted distributable cash of $3.9 million ($1.8 million in 2009) and paid unitholders $1.8 million ($3.6 million in 2009) for a payout ratio of 46% (196% in 2009).

The significantly lower payout ratios are due to SWDCC's improved cash generation, as well as a decision made by the Fund's Trustees to reduce monthly distributions to $0.03 per unit ($0.36 annually) from the previous level of $0.075 per unit ($0.90 annually) beginning with the June 2009 distribution. This decision was made in response to SWDCC's decreased production volumes and increased investment in consumer advertising in 2009, and in order to maintain a conservative capital structure.

Finally, during the third quarter of 2010, SWDCC recorded net income of $0.3 million, compared to net income of $1.2 million for the same period last year. For the year-to-date, the company realized net income of $0.2 million, compared to net income of $2.3 million in the first three quarters of 2009. In 2010, third quarter and nine-month earnings were negatively affected by unrealized (non-cash) losses on the derivative financial instruments which SWDCC utilizes to manage the effect of changes in commodity coffee prices and US-Canadian exchange rates. This is in contrast to 2009, when SWDCC recorded unrealized gains on derivative instruments for the three and nine months ended September 30. Unrealized gains and losses only impact reported net income in the relevant reporting period, and may change before the underlying financial instruments are actually liquidated.*

"We are pleased with our third quarter results," said Frank Dennis, President and CEO of SWDCC and a Trustee of the Fund. "While high coffee commodity prices prompted many of our smaller customers to reduce their inventories and thus, their orders with us, large processing orders from national accounts more than offset those declines. As a result, virtually all of our key financial performance measures are up compared to this time last year, with volume growth recorded in all of our markets."

*A more detailed discussion of the Fund's financial performance, including its use of derivative financial instruments, and the impact of realized and unrealized gains and losses on its results, can be found in its Management's Discussion and Analysis (MD&A) for the three and nine months ended September 30, 2010. The MD&A will be posted, along with the Fund's unaudited interim consolidated financial statements on SEDAR (www.sedar.com) on or before November 5, 2010.

Conversion From an Income Trust to a Corporation

On September 30, 2010, SWDCC announced its intent to convert from an income trust structure to a corporation. Unitholders will be asked to approve the conversion at a special meeting to be held in December 2010. If approved, the conversion will become effective on or about January 1, 2011, and unitholders will receive one share in a newly created public company for each unit of the Fund they hold. The new company, known as Ten Peaks Coffee Company Inc. ("Ten Peaks"), is expected to be listed on the Toronto Stock Exchange as of the effective date of the conversion. SWDCC will become a wholly owned subsidiary of Ten Peaks, and will continue to operate the green coffee decaffeination business. An information circular describing the proposed conversion, as well as the Canadian tax implications for the Fund and its unitholders, is available on SEDAR at www.sedar.com.

Company Profile

The Fund owns Swiss Water Decaffeinated Coffee Company Inc. (SWDCC), a premium green coffee decaffeinator located in Burnaby, British Columbia, Canada. SWDCC decaffeinates customer-owned coffees, including organically certified coffees, for a fee - its "toll" business; and also purchases high-quality green coffees, decaffeinates them and markets them to the green coffee trade - its "non-toll" business.  The SWISS WATER^® Process is a proprietary 100% chemical free decaffeination process that does not use methylene chloride or ethyl acetate. The SWISS WATER^® Process is the world's only consumer branded decaffeination process and the company supports the brand through ongoing consumer research and focused consumer advertising.

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements may include such words as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance as well as management's current estimates, but which are based on numerous assumptions and may prove to be incorrect. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties, including, but not limited to, risks related to processing volumes and sales growth, operating results, supply of coffee, general industry conditions, commodity price risks, technology, competition, foreign exchange rates and general economic conditions.

The forward-looking statements and financial outlook information contained herein are made as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. Except to the extent required by applicable securities law, the Fund undertakes no obligation to publicly update or revise any such statements to reflect any change in management's expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those described herein.

%SEDAR: 00017658E

For further information:

Sherry Tryssenaar, Chief Financial Officer

Swiss Water Decaffeinated Coffee Company Inc.

Phone: [phone]    Fax: [phone]

Email: [email protected]

Website: www.swisswater.com