BFI Canada Income Fund Announces Results for the Three Months and Year Ended December 31, 2006

Market Wire, March, 2007

BFI Canada Income Fund (the "Fund") (TSX: BFC.UN) today reported strong financial results for the three months and year ended December 31, 2006. The Fund's 2006 financial results include a full year to date contribution from IESI Corporation ("IESI"), the Fund's U.S. segment, which was acquired by the Fund on January 21, 2005. Accordingly, the financial results, as reported, for the year ended December 31, 2005 excludes the Fund's U.S segment financial results for the period from January 1 to January 20, 2005. All amounts are in thousands of Canadian dollars, unless otherwise stated.

Management Commentary

"In 2006, the Fund continued to grow profitably, delivering benchmark financial performance and demonstrating the value of our business model," said Keith Carrigan, Vice Chairman and Chief Executive Officer. "Growth was achieved in every business segment through both organic improvement and contributions from 12 "tuck-in" acquisitions. We are especially pleased with the continuing improvement in organic revenues, which reflects the successful integration of our U.S. segments. Organic Canadian and U.S. segment revenue growth, which excludes acquisitions and fuel and environmental surcharges, was 12.9% and 10.7% year over year, respectively, and 9.6% and 7.3% quarter over quarter, respectively.

"This solid performance resulted in comparable consolidated year over year revenue and EBITDA growth of 10.5% and 11.6%, respectively, and consolidated quarter over quarter revenue and EBITDA growth of 12.6% and 21.9%, respectively. On the basis of these improvements, year over year free cash flow available for distribution(B) increased 15.2% and quarter over quarter free cash flow available for distribution increased(B) 28.6%."

Mr. Carrigan continued, "In recognition of our strong cash flow performance, our Trustees authorized in August 2006 the fifth increase in trust unit distributions since the Fund's inception, raising annualized distributions by 7.1% to $1.818 per trust unit. Despite this increase, our payout ratio declined to 75.6% and 80.5% in the three months and year ended December 31, 2006, respectively. This offers further evidence that our formula for creating value for unitholders is working."

In respect of 2007, Mr. Carrigan said, "we believe we are well positioned with a clear focus on business fundamentals. Our operating agenda includes adding new customers, increasing route density and renewing contracts at our traditionally high rate. To support our growth objectives, we are also committed to pursuing strategic acquisitions that deliver additional value for our unitholders. While 2006 was a year of solid financial performance, we think there are many opportunities in 2007 to continue our advancement and plan to firmly act on these."

Financial Highlights for the Three Months and Year Ended December 31, 2006 (as reported)

- Total consolidated revenues increased 12.6% to $200.3 million, and 13.9% to $771.8 million, respectively.

- Total organic and acquisition revenue growth increased 14.8% and 15.5%, respectively.

- Total organic and acquisition EBITDA growth increased 24.2% and 16.1%, respectively.

- Free cash flow available for distribution(B) increased to $39.3 million or 28.6% and $142.0 million or 17.5%, respectively.

- The Fund's payout ratio of was 75.6% and 80.5%, respectively.

- The Fund's payout ratio excluding the effects of the foreign currency hedge was 77.4% and 82.8%, respectively.

Other Highlights for the Three months and Year Ended December 31, 2006

- Based on the Fund's performance and consideration of the current and forecasted foreign currency exchange rate, Trustees of the Fund approved a 7.1% increase to distributions from an annual rate of $1.698 per trust unit to $1.818 per trust unit effective for the distribution paid on September 15, 2006 to unitholders of record on August 31, 2006. Distributions to holders of participating preferred shares ("PPSs") have increased by an equivalent amount.

- The Fund completed 12 "tuck-in" acquisitions in 2006 for aggregate cash consideration, including payments in respect of contingent consideration, totalling approximately $13,900 and $33,600, respectively.

- Effective February 10, 2006, the Fund entered into a Fourth Amended and Restated Credit Agreement in Canada. The amended and restated credit agreement increases the total available credit under the facility, subject to lender consent, from $80,000 to $120,000 and matures, subject to one year extensions, on June 30, 2010. Borrowing rates under the Fourth Amended and Restated Credit Agreement are more favourable than the predecessor credit agreement.

- Effective March 10, 2006, the Fund amended its Amended and Restated Revolving Credit and Term Loan Agreement in the U.S. The amendments increased the total available credit under the facility, subject to lender consent, from U.S. $500,000 to U.S. $550,000 and borrowing rates under the amended credit agreement are more favourable than the predecessor credit agreement.