ERCO Worldwide to close Thunder Bay chemicals plant

TSX: SPF.UN 

CALGARY, Aug. 30 /CNW/ - Superior Plus Income Fund (the "Fund") announced
today that during the first quarter of 2006, ERCO Worldwide, a division of
Superior Plus Inc., will be closing its sodium chlorate plant, located in
Thunder Bay, Ontario. The plant has an annual sodium chlorate capacity of
48,000 metric tonnes and has recently been operating at reduced levels, as a
result of high electricity costs in Ontario. ERCO Worldwide has made
arrangements to provide uninterrupted supply of product and will continue to
serve customers through its seven plants in Hargrave, Manitoba, Bruderheim and
Grande Prairie, Alberta, Vancouver, British Columbia, Saskatoon, Saskatchewan,
Buckingham, Quebec and Valdosta, Georgia.
The shut-down of the Thunder Bay plant is not expected to impact
distributable cash flow, as ERCO Worldwide is anticipated to benefit from
increased operating efficiencies by redirecting production to other sites that
can achieve higher operating rates and by introducing new capacity in higher
margin areas over time. Approximately $40 million of net book value of the
Thunder Bay plant is anticipated to be written off as a non-cash depreciation
expense over the remainder of 2005. Cash costs, including severance and
demolition costs net of recovery of materials, are expected to be offset by
achieving higher operating efficiencies with the elimination of Thunder Bay's
high cost structure.
Paul Timmons, President of ERCO Worldwide, said: "The shut-down of the
Thunder Bay facility due to very high electricity costs in Ontario is
unfortunate but necessary for ERCO Worldwide to maintain its competitive
position as one of the lowest cost producers of sodium chlorate in North
America. Thanks to the diligence and dedication of the Thunder Bay employees,
the plant has achieved an excellent performance record since it began
operations in 1979. ERCO Worldwide continues to focus on increasing its
operational efficiencies and pursuing other opportunities in the growing Asian
and South American markets."
ERCO Worldwide is the largest producer of sodium chlorate in North
America with a remaining annual sodium chlorate capacity of 532,000 metric
tonnes. The construction of the sodium chlorate plant in Chile, scheduled for
start-up in mid-2006 will add 55,000 metric tonnes and provide ERCO Worldwide
with a strong foothold in the growing South American market. ERCO Worldwide
also has the word's largest installed base of modern chlorine dioxide
generators and related technology for the pulp and paper industry. With the
recent acquisition of the Port Edwards, Wisconsin chloralkali/potassium
facility, ERCO Worldwide is the second largest producer of potassium products
in North America. In addition, it produces caustic soda, chlorine and
hydrochloric acid at its Saskatoon and Port Edwards plants.

The Fund holds 100% of Superior Plus Inc., which has three other
operating divisions: Superior Propane is Canada's largest distributor of
propane, related products and services; Winroc is the seventh largest
distributor of walls and ceilings construction products in North America; and
Superior Energy Management provides fixed price natural gas supply services in
Ontario and Quebec.
The Fund's trust units trade on the Toronto Stock Exchange (the "TSX")
under the trading symbol SPF.UN. There are 79.0 million trust units
outstanding. The Fund has $9.5 million principal amount of Series 1, and
$63.2 million of Series 2, 8%; and $175.0 million of 5.75% Convertible
Unsecured Subordinated Debentures outstanding, that trade on the TSX under the
trading symbols SPF.DB, SPF.DB.A, and SPF.DB.B, respectively.

Forward Looking Statements: Except for the historical and present factual
information, certain statements contained herein are forward-looking. Such
forward-looking statements are not guarantees of future performance and
involve a number of known and unknown risks and uncertainties which may cause
the actual results of the Fund or Superior Plus Inc. in future periods to
differ materially from any projections expressed or implied by such forward-
looking statements and therefore should not be unduly relied upon. Any 
forward-looking statements are made as of the date hereof and neither the Fund
nor Superior Plus undertakes any obligation to publicly update or revise such
statements to reflect new information, subsequent events or otherwise.
Non-GAAP Measures: Distributable cash flow of the Fund available for
distribution to Unitholders, is equal to the cash flow from operations before
changes in net working capital, after provision for maintenance capital
expenditures. Distributable cash flow is the main performance measure used by
management and investors to evaluate the performance of the Fund, Superior and
its operating divisions. Readers are cautioned that distributable cash flow is
not a defined performance measure under Canadian Generally Accepted Accounting
Principles ("GAAP"), and that distributable cash flow cannot be assured. The
Fund targets to pay out substantially all of its ongoing sustainable
distributable cash flow through regular monthly distributions. The Fund's
calculation of distributable cash flow may differ from similar calculations
used by comparable entities.