CHEMTRADE LOGISTICS ANNOUNCES COMPLETION OF $117 MILLION ACQUISITION OF B.C. CHEMICALS BUSINESS FROM CANFOR

TORONTO, August 29, 2003 - Chemtrade Logistics Income Fund (TSX: CHE.UN) announced today that, through a wholly owned affiliate Chemtrade Pulp Chemicals LP, it has completed the previously announced purchase of the operations and assets of the B.C. Chemicals division of Canadian Forest Products Ltd. (“Canfor”) for $117.3 million. Chemtrade Pulp Chemicals will be the exclusive supplier of sodium chlorate to Canfor’s Prince George pulp and paper mills, as well as a supplier to third parties. The acquisition expands and diversifies Chemtrade’s existing operations and earnings on a product, geographic and customer basis, improving the stability of its earnings stream.

The acquisition was funded by the proceeds of an offering of Subscription Receipts and an increase in Chemtrade’s term credit facility. The offering of the Subscription Receipts was completed on August 15, 2003. With the completion of the acquisition, the Subscription Receipts are exchanged for Units of the Fund effective August 29, 2003.

Chemtrade previously announced that it expects to increase its supplemental quarterly distributions by $0.01 per unit to $0.12 per unit effective with the third quarter supplemental distribution payable on October 31, 2003 to unitholders of record on October 29, 2003. Together with regular monthly distributions of $0.11 per unit, this will increase the expected annual distribution rate to $1.80 per unit.

Chemtrade Logistics operates diversified businesses that provide industrial chemicals and services to customers in North America and around the world. Through marketing services agreements and its own production facilities, Chemtrade is one of the world’s largest suppliers of sulphuric acid, liquid sulphur dioxide and sodium hydrosulphite. Chemtrade is also a leading regional supplier of sodium chlorate and elemental sulphur.

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