Company Taken Over

Effective May 5, 2008, Royal Utilities Income Fund was acquired by Sherritt International Corporation. Unitholders had the option of accepting $12.68 in cash, 0.8315 common shares of Sherritt, or any combination of the cash and share alternatives. Furthermore, unitholders of Royal Utilities who accept Sherritt shares as part of their sale consideration, could make a joint election to obtain a full or partial tax-deferred rollover with regard to the shares received.