What is the Business of the WesternOne Equity Income Fund?

WesternOne has been formed to seek out and to acquire predominantly privately-owned small and mid-market businesses, located primarily in Western Canada, in order to generate stable distributions to Unitholders as well as overall capital appreciation.

What is WesternOne’s growth strategy?

WesternOne will grow through:

• accretive acquisitions of businesses that meet its target acquisition criteria (see Acquisition Criteria);
• complementary acquisitions; and
• organic growth.

What types of companies does WesternOne look to acquire?

WesternOne will seek acquisitions in a variety of industries including, but not limited to:

• infrastructure and construction;
• logistics and distribution;
• outsourcing;
• manufacturing;
• financial services; and
• businesses operating in markets with the potential for strong demographic growth.

Are there any industries WesternOne does not look at?

WesternOne will not invest in real estate (other than when it is a part of the business operations), technology or startup ventures.

How does WesternOne select acquisition targets?

The ultimate selection of acquisitions will be prioritized by WesternOne’s ability to generate value-added returns to its Unitholders.

To achieve these returns WesternOne will operate in much the same fashion as successful private equity firms with the exception of the high level of debt such groups typically place on their businesses, which can limit growth and create undue risk. WesternOne’s returns will instead be derived from growth and operating improvements, rather than excessive financial leverage.

When selecting acquisition targets, WesternOne will look for candidates who meet WesternOne’s acquisition criteria including:

• Western Canada focus;
• history of stable cash flows;
• strong growth potential, both internally and through add-on acquisitions;
• strong market share position;
• committed management team;
• EBITDA of approximately $3 million to $10 million; and
• accretive to unit holders.

What is WesternOne’s business strategy?

WesternOne’s business strategy allows the management of each acquired business to control the day-to-day activities of the business while WesternOne oversees the strategic, investment and capital allocation decisions for the business. Since WesternOne is acquiring businesses with an established history of growth and profitability, it believes that the existing management is well suited to continue this growth going forward.

How does WesternOne source new companies to acquire?

WesternOne has a strong executive team including trustees, management and directors with a breadth of experience in corporate finance, private equity and asset management. The team has well-established connections in the Western Canadian marketplace, with ties to business owners in a variety of sectors.

The portfolio businesses will have a geographic focus primarily in the Western Canadian provinces of British Columbia, Alberta, Saskatchewan and Manitoba, where WesternOne’s extensive network of relationships and geographic proximity will allow it to be effective in sourcing new acquisitions and in working with businesses post acquisition.

Where do WesternOne Equity Income Fund units trade?

Fund units trade on the Toronto Stock Exchange under the ticker symbol WEQ.UN. WesternOne's convertible debenture also trades on the TSX under the symbol WEQ.DB You can obtain more information on the Toronto Stock Exchange website www.tsx.com.

How many Trust units are outstanding?

As of September 30, 2009, there were 13,838,634 Trust Fund units outstanding.

How do you determine the cash distributions to unit holders?

Distributable cash consists of earnings before income taxes plus interest expenses and depreciation and amortization less maintenance capital expenditures, cash interest and cash taxes paid. It is a non GAAP measure and therefore may not be comparable to distributable cash as used by other income funds. We set our distribution policy at a level that we believe is sustainable based on historical, current and prospective performance of our operating partnerships.

What is WesternOne's distribution policy?

WesternOne expects to make regular monthly cash distributions to Trust unit holders, to be paid within 15 days following the end of each month. Debenture Unit distributions are paid semi-annually, in January and July.

What is the current Trust Unit distribution per unit?

The current annual distribution is $0.60 per unit.

What is WesternOne’s fiscal year-end?

December 31.

When does WesternOne release its quarterly financial results?

Financial results are expected to be released in April (first quarter), July (second quarter), October (third quarter) and January (fourth quarter and year end).

Where can I obtain financial information and news releases?

Financial reports and news releases are available on this website under News Releases. In addition, WesternOne’s publicly filed disclosure documents are available on SEDAR at www.sedar.com.

Does WesternOne offer a Dividend Reinvestment Plan (DRP)?

No, there is currently no DRP program in place.

Who is the transfer agent and registrar for Fund units?

The transfer agent and registrar keeps a record of every outstanding unit certificate and the name of the person or organization to whom it is registered. When registered units are bought or sold or change hands, the transfer agent transfers the ownership of the units. The transfer agent and registrar for the WesternOne units is Computershare Investor Services Inc. at its principal transfer offices in Vancouver, British Columbia and Toronto, Ontario.

Who are the auditors of WesternOne?

The auditors of WesternOne are KPMG LLP of Vancouver, British Columbia.