Energy Savings Income Fund: Second Quarter Results for 3 and 6 Months Ending September 30, 2006

Market Wire, November, 2006

Energy Savings Income Fund (TSX: SIF.UN) -

Highlights for the three months ended September 30, 2006 included:

- Gross customer additions of 93,000 with net additions of 59,000. Energy Savings' customer base reached 1,647,000, up 24% year over year.

- Gross margin (seasonally adjusted) of $44.2 million, up 12% quarter over quarter.

- Net loss of $1.3 million, down from net income of $9.8 million, primarily due to non-cash mark to market valuation of hedge positions.

- Distributable cash after customer replacement of $24.8 million ($0.23 per unit), down 6% quarter over quarter.

- Distributions of $0.25 per unit, up 12% quarter over quarter.

- Completion of successful test marketing allowing entry into the Indiana natural gas market.

- Reaffirmation of management guidance for the fiscal 2007 annual results versus fiscal 2006:

Gross Margin growth            15% - 20%

Distributable Cash growth      15% - 20%

Energy Savings' Second Quarter Results

Energy Savings is an Income Fund and it reports in the attached Management's Discussion and Analysis a detailed calculation of distributable cash both before and after marketing expenditures to expand the Fund's customer base.

Energy Savings Income Fund announced its results for the three and six months ended September 30, 2006.

-------------------------------------------------------------------------
Three months ended September 30,        F2007      Per     F2006      Per
($ millions except per Unit)                      Unit               Unit
-------------------------------------------------------------------------
Sales(1)                               $330.1             $270.9
-------------------------------------------------------------------------
Gross Margin(1)                        $ 44.2    $0.41    $ 39.3    $0.37
-------------------------------------------------------------------------
Distributable Cash(1)
-------------------------------------------------------------------------
- After Customer Replacement           $ 24.8    $0.23    $ 26.5    $0.25
-------------------------------------------------------------------------
- After Marketing for New Customers    $ 19.1    $0.18    $ 20.8    $0.19
-------------------------------------------------------------------------
Distributions                          $ 26.9    $0.25    $ 24.0    $0.22
-------------------------------------------------------------------------
Long Term Customers                 1,647,000          1,327,000
-------------------------------------------------------------------------
Six months ended September 30,          F2007      Per     F2006      Per
($ millions except per Unit)                      Unit               Unit
-------------------------------------------------------------------------
Sales(1)                               $651.2             $533.9
-------------------------------------------------------------------------
Gross Margin(1)                        $ 92.4    $0.86    $ 82.0    $0.77
-------------------------------------------------------------------------
Distributable Cash(1)
-------------------------------------------------------------------------
- After Customer Replacement           $ 55.2    $0.51    $ 53.6    $0.50
-------------------------------------------------------------------------
- After Marketing for New Customers    $ 40.6    $0.38    $ 42.3    $0.40
-------------------------------------------------------------------------
Distributions                          $ 52.5    $0.49    $ 47.5    $0.44
-------------------------------------------------------------------------

(1) Seasonally adjusted

Operationally, we faced a number of challenges during the quarter. In particular, excess gas from last year's warm winter in Ontario was released from local utility storage and was sold during a period of low spot prices. In the US, the growth of our business has been slowed because of credit screening of contracts in Illinois and high customer losses prior to flow and heavy attrition in New York due to customer switching.

There is little that Energy Savings can do about lower gas consumption during warm winters and we cannot control the times at which excess gas is released from utility storage. Our risk management policy requires excess supply to be sold immediately. As has been stated in the past, we are exposed to the extent of 3% to 4% of our margin in a record warm winter. Despite this setback, we expect our year over year margin increase to be in the 15% to 20% range assuming a normal winter season.

We have taken steps to deal with each of the US issues. In Illinois, tight credit processes have been accepted by our independent sales agents and they are modifying their sales techniques accordingly. We expect a ramp-up in Illinois production, particularly as the agents expand their market territory to include newly opened Indiana.

In New York, we have worked collaboratively with the local utility and regulators to institute what is known in all our other markets as a Contest Period. Many of our New York customers are being switched, without the opportunity to make an informed decision, to other suppliers. Without the ability to contest this switch, it is often several months before the customer can be returned to our service. This inconveniences suppliers, customers and the utility alike.