Distribution Change

In January, 2008, Eveready Income Fund declared quarterly "in-kind" distributions of $0.18 per unit to unitholders of record as of March 31, 2008 and June 30, 2008. The unit distributions were issued at a deemed price of $3.7242 per unit and $3.8862 per unit for the March 31, 2008 and June 30, 2008 distributions respectively. On September 11, 2008, Eveready replaced the quarterly "in-kind" distribution with a quarterly cash distribution of $0.04 per unit.