UE Waterheater Income Fund and UE Waterheater Operating Trust announce completion of the sale of assets to 3216444 Nova Scotia Company


    TORONTO, June 28 /CNW/ - UE Waterheater Income Fund (the "Fund" or "UE")
(TSX: UWH.UN) announced today the sale of substantially all of the assets of
UE Waterheater Operating Trust (the "Trust") and certain assets of the Fund to
3216444 Nova Scotia Company (the "Transaction") has closed. With the
completion of the Transaction, Fund unitholders will receive $23.00 per Fund
unit, payable in cash upon the redemption of their Fund units, for a total
consideration of approximately $1.134 billion. A regular monthly distribution
in the amount of $0.08825 per Fund unit will also be paid to Fund unitholders
of record at the close of business on May 31, 2007.
    In connection with the closing of the Transaction, the Trust received
sufficient funds to defease, redeem and/or cause to be repaid certain
obligations and liabilities of the Trust including the 4.145% Series 1 Senior
Secured Notes and the 4.722% Series 2 Senior Secured Notes of the Trust (the
"Senior Notes"). The holders of the Senior Notes will receive payment in
respect of their Senior Notes on or about July 30, 2007.
    In accordance with the Fund's Amended and Restated Declaration of Trust
of the Fund, as amended, Fund units will be redeemed on June 29, 2007,
following which the Fund and the Trust are expected to be terminated and
wound-up as promptly as possible. The Fund units will be de-listed from the
Toronto Stock Exchange at the close of trading on June 28, 2007.

    Forward Looking Statements

    This release includes certain forward-looking statements including,
    without limitation, statements concerning the value of any redemption of
    Fund units, the projected costs and plans and objectives of management
    for future operations. Forward-looking statements generally can be
    identified by the use of forward-looking terminology such as "may",
    "will", "expect", "intend", "estimate", "anticipate", "believe",
    "should", "plans" or "continue" or the negative thereof or variations
    thereon or similar terminology. Although the Fund believes that the
    expectations reflected in such forward-looking statements are reasonable,
    it can give no assurance that such expectations will provide to be
    correct. These forward-looking statements are subject to a number of
    risks and uncertainties. Actual results could differ materially from
    those anticipated in these forward-looking statements.

    About UE Waterheater Income Fund

    UE Waterheater Income Fund is an unincorporated, open-ended, limited
purpose trust established under the laws of Ontario that indirectly holds,
through UE Waterheater Operating Trust, the water heater rental business of
Union Energy Limited Partnership (Union Energy LP) and its related commercial
activities as well as the security monitoring business of Protectron Limited
Partnership (Protectron LP). Each Unit of the Fund represents an indirect
ownership interest in Union Energy LP and Protectron LP, which own and operate
the businesses.

    Union Energy LP's main business is the rental and service of a portfolio
of more than one million residential water heaters in Ontario which is
Canada's second largest portfolio of rental water heaters in a program that
was initiated in the 1960s. In addition, Union Energy LP has related
commercial activities that complement the water heater rental business, being
the retail sale, rental, service and maintenance, and financing of heating,
ventilation and air conditioning equipment as well as electronic security
system sales, installation, rental, service, monitoring, and related
commercial activities. The businesses operate under the Reliance Home Comfort,
Reliance Protectron Security Services, UEI Financial and Reliance Commercial
Solutions brand names.
    For more information on the UE Waterheater Income Fund, visit the web
site at www.ueincomefund.com

For further information:

For further information: Media, Jennifer Garland, (416) 490-4968,
jgarland@reliancecomfort.com; Investment Community, Catherine David Nolan,
Chief Financial Officer, (416) 499-7098, cdavidnolan@reliancecomfort.com

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