Badger Income Fund delays internal reorganization

TSX-BAD.UN

CALGARY, Nov. 10 /CNW/ - Badger Income Fund (the "Fund") is announcing
that it will not be holding a special meeting of the unitholders on the
proposal for an internal reorganization to convert the organizational
structure of the Fund to the more modern trust-on-partnership structure, as
previously announced October 26, 2006.
Measures announced by the Honourable Jim Flaherty, Canadian Minister of
Finance, on October 31, 2006 include a proposed tax on distributions paid by
publicly traded income trusts and limited partnerships. This will result in
less after-tax cash being available for payment to all unitholders. As an
existing income fund these measures will not apply until January 2011. For the
four-year grace period to 2011 existing tax treatment of distributions will
remain in effect.
Once the Government's proposed changes have been announced, Management of
the Fund will consider the impact and determine if the reorganization to a
modern trust-on-partnership structure will still maximize unitholder value and
better accommodate future expansion opportunities.

Badger Income Fund is an open-ended trust that is North America's largest
provider of non-destructive excavating services. Badger traditionally works
for contractors and facility owners in the utility and petroleum industries.
Our key technology is the Badger Hydrovac, which is used primarily for safe
digging in congested grounds and challenging conditions. The Badger Hydrovac
uses a pressurized water stream to liquefy the soil cover, which is then
removed with a powerful vacuum system and deposited into a storage tank.
Badger manufactures its truck-mounted hydrovac units.

Badger Income Fund's business model involves the provision of excavating
services through two distinct entities: the Operating Partners (franchisees in
the United States and agents in Canada), and Badger Corporate. Badger
Corporate works with its Operating Partners to provide Hydrovac service to the
end user. In this partnership, Badger provides the expertise, the trucks, and
North American marketing and administration support. The Operating Partners
deliver the service by operating the equipment and developing their local
markets. All work is invoiced by Badger and then shared with the Operating
Partner based upon a revenue sharing formula. In limited locations Badger has
established corporate run operations to market and deliver the service in the
local area.

The Toronto Stock Exchange neither approves nor disapproves of the
contents of this Press Release.

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