Armtec Announces Acquisition of Assets of Ontario Corrugated Pipe Manufacturer

Toronto Stock Exchange: ARF.UN

GUELPH, ON, Aug. 21 /CNW/ - Armtec Infrastructure Income Fund (the "Fund") (TSX: ARF-UN.TO) today announced it has acquired certain specified assets of Oxford Plastics Inc. ("Oxford") for approximately $5.7 million. Based in Embro, Ontario, Oxford is a leading manufacturer and supplier of high density polyethylene pipe (HDPE) drainage tile focused on Ontario's agricultural market and building trades sector.

Under the terms of the transaction, the Fund has purchased Oxford's equipment used to manufacture and distribute corrugated tubing, as well as its existing inventories in Embro and Chatham in southwestern Ontario. Oxford is a highly regarded supplier of tubing for the Ontario agricultural market, which is expected to be strong for the next several years due to increased demand for food and crop prices that are at near historically high levels. It also is a significant supplier of products to the building trades sector, an important market segment which Armtec already serves with a growing range of products.

"The acquisition of these assets further emphasizes our commitment to the Ontario agricultural and building trades markets. Our network of manufacturing and distribution locations, combined with our expertise in these markets and broader range of products will help Armtec achieve its goal of providing our customers with the best solutions and service currently available," said Charles Phillips, President and Chief Executive Officer.

About Armtec Infrastructure Income Fund

The Fund is a leading manufacturer and marketer of a broad range of infrastructure products and engineered bridging solutions for application in a diverse cross-section of industries. These include the public infrastructure market and private sector markets such as natural resources, commercial building, residential construction and agricultural drainage. The Fund's Armtec division is Canada's only national multi-material manufacturer specializing in corrugated high density polyethylene pipe, and corrugated steel pipe for drainage applications and highly engineered solutions including bridging products and water management systems. The Con-Force division designs and manufactures a wide range of bridging and construction products, including the advanced "NU" bridge girder system that allows for some of the longest spans available in precast concrete technology. The Durisol division designs and manufactures highway noise barriers and related infrastructure products, such as retaining walls and acoustic enclosures, and is recognized as the only fully qualified supplier of absorptive material in Ontario.

Forward-Looking Statements

This news release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). All statements other than statements of historical fact contained herein are forward-looking statements, including, without limitation, statements regarding the Oxford acquisition and statements regarding the business strategy, plans and objectives of or involving the Fund or the businesses in which it has invested. Prospective investors can identify many of these statements by looking for words such as "believe", "expects", "will", "intends", "plans", "projects", "anticipates", "estimates", "continues" and similar words or the negative thereof. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

By their nature, forward-looking statements require assumptions and are subject to inherent risks and uncertainties, including those discussed herein. There is significant risk that forward-looking statements will not prove to be accurate. You are cautioned not to place undue reliance on forward-looking statements made herein because a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.

The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: industry cyclicality; competition; reduction in demand for products; collection from customers; relationships with suppliers; lack of long-term agreements; expiration of rights under licence and distribution arrangements; raw material price volatility; product liability; intellectual property; reliance on key personnel; environmental; collective bargaining; interest rates; uninsured and underinsured losses; operating hazards; risks of future legal proceedings; dependence on other Fund subsidiaries; income tax matters; leverage and restrictive covenants; credit facilities; nature of units; distribution of securities on redemption or termination of Fund; restrictions on potential growth; effect of market interest rates on price of Units; undiversified and illiquid holdings in Armtec Operating Trust; potential dilution; and various risks relating to the Oxford acquisition, including risks relating to completion of the acquisition (such as satisfaction by both Armtec and the vendor of the conditions to closing) and integration and realization of expected synergies, Oxford's reliance on key personnel, potential undisclosed liabilities associated with the Oxford acquisition, and the Fund's limited recourse against the vendor of Oxford. You are cautioned that the foregoing list of factors is not exhaustive and that when relying on forward-looking statements to make decisions with respect to the Fund, investors and others should carefully consider these factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The Fund undertakes no obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities law.

Risks related to the Fund have been summarized in the Fund's latest Annual Information Form, Management's Discussion and Analysis included in the Annual Report and quarterly financial reports available on www.sedar.com or the Fund's web site at www.armtecincomefund.com.

Contacts

Charles M. Phillips
President & Chief Executive Officer
Armtec Limited Partnership
Tel: (519) 822-0210
Fax: (519) 822-8894

James R. Newell
Chief Financial Officer
Armtec Limited Partnership
Tel: (519) 822-0210
Fax: (519) 822-8894

Carrie Boutcher
Vice President
Finance
Armtec Limited Partnership
Tel: (519) 822-0210
Fax: (519) 822-8894