The Consumers’ Waterheater Income Fund Provides an Update Regarding Billing and Trust Arrangements

TORONTO, ONTARIO–(Marketwire – Feb. 29, 2008) – NOT FOR RELEASE IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES. The Consumers' Waterheater Income Fund (TSX:CWI.UN) ("Fund") and its wholly-owned trust, The Consumers' Waterheater Operating Trust ("Trust"), today announced that the Fund, Enbridge Gas Distribution Inc. ("EGD") and Direct Energy Marketing Limited ("DE"), the Fund's servicer, among other parties, entered into an agreement to extend the date of termination of the existing trust arrangements relating to the Fund's billing and collecting activities that are undertaken on the EGD bill from March 1, 2008 to just before midnight on March 9, 2008. This new date will allow for the new billing and related trust agreements to be effective on EGD's first billing day in March, being March 10, 2008. Subject to a final review of the new billing and trust agreements and related trust transition agreement by the trustee and servicer under those agreements, all of the terms of the definitive agreements required to implement the new billing and trust arrangements with EGD, with effect on March 10, 2008, have been settled between the Fund, DE and EGD. The Trust expects both DBRS and S&P to confirm their 'AAA' ratings of the Trust's secured notes following execution of these agreements. Although the Fund expects these definitive agreements to be entered into and the ratings to be confirmed, there can be no assurance that they will be entered into and t hat replacement trust arrangements will be retained, nor can there be any assurance as to confirmation of the ratings. Any failure to maintain such trust arrangements may have an adverse impact on the credit rating of the Trust's outstanding senior secured notes and its ability to refinance its debt obligations. About The Consumers' Waterheater Income Fund The Consumers' Waterheater Income Fund owns a portfolio of approximately 1.4 million installed water heaters and other assets, rented primarily to residential customers in Ontario. Additional information regarding the Fund and Trust, including the Fund's current Annual Information Form dated March 19, 2007, is available on SEDAR at

For further information: The Consumers’ Waterheater Income Fund
Steve Bower
(905) 943-6292 or 1-877-877-0142
Email: [email protected]