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

Market Wire, November, 2006

"Because of the matched nature of our supply and demand plus the lead time required for customers signed during the remainder of the year to flow, we have a clear picture of our gross margin for Q3 and Q4. As our G&A and marketing costs are reasonably predictable, management has a similarly clear view of distributable cash through to March 31, 2007. This view is based on normal winter weather and there inevitably will be some balancing adjustments (up or down) to reach the final number. That said, based on results to date, management believes that year end results will be in line with our published guidance."

"Regarding our marketing results, clearly our additions in Illinois and New York are lagging the rates necessary to reach our U.S. target. At the same time, additions in Canada are well ahead of pace to meet targets. We stand at 47% of our 475,000 gross and 307,000 net addition targets after six months. While we are disappointed in the U.S. additions to date, we believe that changes to our customer credit policy in Illinois and the potential introduction of a Contest Period in New York will bring improved results in these markets for the second half of the year. Our independent sales agents tell us that the customers in Illinois and New York are as receptive to our long term fixed contracts as are customers in Ontario. If this holds true, the United States will be an Energy Savings growth market for decades to come."

Executive Chair Rebecca MacDonald commented on the Federal Government's proposal to tax Income Trust distributions: "I am gravely disappointed by the Government's reversal of policy on Trust taxation. While I fully understand the need to halt the total conversion of corporate Canada to the Trust structure, I believe this could have been accomplished without the substantial damage to the value of existing Trusts. Many Trusts, including ours, have never operated in the corporate form. Energy Savings chose to go public as a Trust, not in an attempt to reduce corporate tax but rather to highlight our unique ability to both grow very rapidly and pay out substantial cash flow. The measures as proposed would deny us access to capital and essentially force us to convert to a corporation."

"The rationale for not "grandfathering" existing trusts is that Canadian capital is being channeled away from growth industries toward low-growth income trusts, harming our long term national competitiveness. Let us examine this in our context. The deregulation of utility services is sweeping across North America. It has been and continues to be one of the highest growth sectors of the economy. Energy Savings, a Canadian founded and owned company, is a North American industry leader in this growing market. We have had compound growth in sales and cash flow of over 40% per year for the five years since we went public. We have delivered exceptional returns to our Unitholders over the same period. Energy Savings is exactly the type of company the Government should encourage the capital markets to support. Constraining future conversions does not require prejudicing existing entities invested in and operated in good faith for years."