Conversion to Corporate Structure

On September 11, 2008, Eveready Income Fund announced its intention to convert to a growth oriented, dividend paying corporation, effective December 31, 2008. Unitholders of Eveready Income Fund received one share of the new Corporation for each five units of Eveready Income Fund previously held. Unitholders of Eveready Income Fund will generally realize a capital gain or loss on this conversion, unless they make a joint election under Section 85 of the Tax Act.