Unitholders of UE Waterheater Income Fund Overwhelmingly Approve Sale and Redemption of Units at $23.00 Per Unit


    TORONTO, June 14 /CNW/ - UE Waterheater Income Fund (the "Fund" or "UE")
(TSX: UWH.UN) announced today that over 99% of the votes cast by Fund
unitholders at its Annual and Special Meeting (the "Meeting") were in favour
of the special resolution (the "Special Resolution") approving 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, an
affiliate of Alinda Capital Partners LLC (the "Proposed Transaction") and
authorizing amendments to the declarations of trust in respect of the Fund and
the Trust including provisions for the redemption of all outstanding units of
the Fund at $23.00 in cash per Fund unit. The Fund expects that the Proposed
Transaction will close on or about June 28, 2007 following which the units of
the Fund will be redeemed for $23.00 cash per Fund unit.
    In connection with the closing of the Proposed Transaction, the Purchaser
will provide the Trust with 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.

    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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