Swiss Water Decaffeinated Coffee Income Fund reports third quarter results, 29.7% year-to-date revenue increase

TRADING SYMBOL: The Toronto Stock Exchange - SWS.UN

Swiss Water Decaffeinated Coffee Income Fund will hold a conference call
to discuss 2006 third quarter and nine-month results on November 7, 2006
at 8:00 am Pacific Time (11:00 am Eastern). The call can be accessed by
dialing: 1-800-733-7560 or 416-915-5651. A replay will be available
through November 21, 2006 at: 1-877-289-8525 or 416-640-1917.
(Passcode: 21209015 followed by the number sign.)

VANCOUVER, Nov. 6 /CNW/ - Swiss Water Decaffeinated Coffee Income Fund
("the Fund") today reported financial results for the three and nine months
ended September 30, 2006. The Fund holds all the outstanding securities of
Swiss Water Decaffeinated Coffee Company, Inc. ("SWDCC" or "the company") and
its results are dependent on the operating results of SWDCC.

<<
Operating Results
(Unaudited)

In $000 except                   3 months ended        9 months ended
 per unit amounts                 September 30          September 30
                                 2006       2005       2006       2005
                              ------------------------------------------

Sales                            6,124      5,470     23,713     18,289
Gross Profit                     2,112      1,781      9,158      7,667
EBITDA(1)                        1,113        935      5,792      5,198
Net Income                         596        866      4,034      4,418
Distributable Cash(1)              960        889      5,329      5,158
Distributions paid               1,418      2,172      4,254      6,518
Per unit amounts :
------------------
Net Income per unit              0.089      0.130      0.604      0.662
Distributable Cash
 generated per unit              0.144      0.133      0.798      0.773
Distributions paid per unit      0.212      0.325      0.637      0.976

(1)  EBITDA, Distributable Cash and Distributable Cash per unit are
     non-GAAP financial measures that are defined in the Management's
     Discussion and Analysis, as posted on SEDAR.
>>

In the three months ended September 30, 2006, SWDCC recorded a 12%
year-over-year increase in sales and a 10% increase in processing volumes. For
the first nine months of 2006, sales were up by 29.7% compared to the same
period in 2005.
The processing volume increase is primarily attributable to new customer
volumes and the competitive pricing strategy implemented by SWDCC in January
2006, coupled with normalized customer order patterns. The more normal order
patterns resulted from this year's more stable New York 'C' (NYC) coffee
commodity price index.
EBITDA for the three months was up by 19% year-over-year as a result of
the increased volume, partially offset by foreign exchange and the inclusion
of marked-to-market commodity forward contract losses in income. The positive
impact of the volume growth was also partially offset by planned increases in
overheads and minor key customer contract adjustments from 2005. For the
nine-month period, EBITDA was up by 11% over 2005.
Third quarter net income of $0.6 million was down by 31% year-over-year,
due in part to increased depreciation costs following the recent activation of
the company's second production line. For the first nine months of 2006, the
Fund recorded net income of $4.1 million, which was down by 9% over the
comparable period in 2005, also partially due to increased depreciation on the
new line.
Distributions to unitholders in the third quarter were maintained at the
level set in December 2005. During the three months, the Fund generated
distributable cash of $1.0 million, and paid $1.4 million in distributions to
unitholders. In the nine-month period, the fund generated distributable cash
of $5.3 million and paid $4.3 million in distributions.
"The third quarter improvement in our EBITDA is encouraging given the
modest growth in processing volumes during a hotter than usual summer season,
when consumers turned to other beverages. We continue to believe that our
success in implementing our new competitive pricing strategy, attracting new
customers and adding capacity through our expansion puts SWDCC in a good
position to generate sustained growth in our processing volumes through the
remainder of 2006," said Frank Dennis, President and CEO of SWDCC and a
Trustee of the Fund.
Dennis added that the Fund is currently analyzing the potential impact of
the federal government's recently announced proposal to change the way income
trusts will be taxed. "Given the information currently available, we do not
believe the proposed changes will have an effect on our current distribution
policy," he stated.
A more detailed discussion of the Fund's financial results can be found
in its third quarter Management's Discussion and Analysis, which is to be
posted with the financial statements on SEDAR (www.sedar.com) on or before
November 14, 2006.

Company Profile

SWDCC is the world's only consumer branded chemical-free coffee
decaffeinator, and is certified organic by both the OCIA (Organic Crop
Improvement Association) and Aurora Certified Organic.
SWDCC decaffeinates customer-owned coffees, including organically
certified coffees, for a toll fee. The company also purchases high-quality
green coffees from more than 10 different countries, decaffeinates them and
markets them to the green coffee trade. These two revenue streams are known as
the company's "toll" and "non-toll" businesses, respectively.
Approximately 55% of SWDCC's revenue comes from the US, about 25% from
Canada and the balance from international markets, including the United
Kingdom, Japan and Australia.

%SEDAR: 00017658E