Where mr Bower wentThe Consumers' Waterheater Income Fund Announces Internalization Agreement
Steve Bower Appointed Chief Financial Officer TORONTO, ONTARIO--(Marketwire - Nov. 12, 2007) - NOT FOR RELEASE IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES The Consumers' Waterheater Income Fund (TSX:CWI.UN) (the 'Fund') today announced it has entered into a definitive agreement with Direct Energy Marketing Limited ('Direct Energy'), providing for internalization of the Fund's management. The Fund also announced the appointment of Steve Bower, FCA as Chief Financial Officer (CFO). Mr. Bower will succeed Steve Entwistle as CFO effective December 3, 2007. Mr. Bower has been hired by the Fund directly as part of the internalization of the Fund's management team. 'This is an exciting day for the Fund,' said John Macdonald, the Fund's President and CEO. 'We see the internationalization of management as an opportunity to simplify the Fund's relationship with Direct Energy. Steve Bower brings significant experience in senior financial roles with public companies, which will be invaluable as Steve and I work together to seek to grow the business.' 'On behalf of our board members and employees, I would like to thank Steve Entwistle for his commitment and leadership to the Fund over the past five years,' said Mr. Macdonald. 'Steve was instrumental in creating a firm foundation for the Fund's success since our inception.' Pursuant to the internalization agreement, the Fund will terminate its administrative services agreement with Direct Energy without payment of any termination fees and will hire its own personnel to administer the day-to-day affairs of the Fund, along with Mr. Macdonald and Mr. Bower. The Fund will make offers of employment to other personnel of Direct Energy whose primary role currently is acting for the Fund's administrative agent. The Fund and Direct Energy anticipate internalization to be completed on December 1, 2007. Such completion is subject to satisfaction of customary conditions, including the obtaining of third party consents. Following internalization, Direct Energy will continue to provide certain administrative services to the Fund on a transitional basis, including certain information systems services and office space. The internalization agreement also provides the Fund with necessary access to Direct Energy's information systems following this transitional period, throughout the term of the co-ownership agreement. Internalization will have no impact on the co-ownership agreement with Direct Energy or the other services agreements with Direct Energy, as Direct Energy will continue to service the Fund's portfolio of rental water heaters and other assets on current terms. Mr. Bower comes to the Fund from Wi-LAN Inc., where he was CFO for the past two years. Previously he held senior financial and operating roles with Petro-Canada, BCE Inc. and Nortel Networks Corp. from 1981 to 1998. He was also CFO of SiGe Semiconductor, Inc., a fast growing private company, from 1999 to 2005. Mr. Bower has been a member of the Board of Financial Executives International - Canada (FEI) since 2005, and was elected a fellow (FCA) of the Institute of Chartered Accountants of Ontario in 2006, in recognition of his outstanding contribution to the profession. Mr. Bower will also be appointed CFO of each of the Fund's operating subsidiaries, including The Consumers' Waterheater Operating Trust. About The Consumers' Waterheater Income Fund The Consumers' Waterheater Income Fund owns a portfolio of 1.4 million installed water heaters and other assets, leased primarily to residential customers in Ontario. The asset base has been generating stable and growing cash flows since its inception in the late 1950s. Additional information regarding The Consumers' Waterheater Income Fund, including its current Annual Information Form is available on SEDAR at www.sedar.com.