CHEMTRADE LOGISTICS TO ACQUIRE LEADING EUROPEAN MARKETER AND DISTRIBUTOR OF SULPHUR AND SULPHURIC ACID

TORONTO, May 2, 2005 - Chemtrade Logistics Income Fund (TSX: CHE.UN) announced today that it has agreed to purchase Ruhr Schwefelsäure GmbH and its subsidiary, Ruhr Transport GmbH (collectively, “RS”), for €8.6 million (approximately CDN$14.1 million) on a debt free basis.  The transaction closed on May 1, 2005.

RS is the leading independent sulphur removal company in Germany, providing services to major oil and gas industry customers in Central Europe, primarily in Germany.  RS has long-term intake contracts with most of the large producers in Central Europe including BP, Shell and Exxon, and multi-year sales agreements with consumers such as Bayer, Degussa and BASF.  Approximately 35% of RS sulphur intake volume is secured by a long-term contract that is in effect until 2017.

Mark Davis, President and Chief Executive Officer of Chemtrade, said that the acquisition is strategically important for Chemtrade.  “Although BCT Chemtrade is based in Europe where it conducts regular sulphur, sulphuric acid and logistics businesses, it operates primarily in global markets. We have been looking for a complementary European domestic business for some time.  RS earnings are generated from removal and sales of liquid sulphur and sulphuric acid within Europe.  The combination of the businesses will create a more geographically diversified portfolio of products within Europe,” Mr. Davis said.  “RS has a significant share of the liquid sulphur market in Western and Central Europe and is an important supplier of merchant sulphuric acid in Germany.  As part of Chemtrade, RS will have improved access to international markets for sulphuric acid and sulphur and the combined logistics operations should result in cost savings for the group.”

Mr. Davis said the acquisition, which will be accretive for unitholders, is an initial step in Chemtrade’s goal to create a more broadly based business in Europe.  “We intend to pursue other growth opportunities in Europe, and our expanded operations will provide a solid base for pursuing additional opportunities to increase earnings and distributable cash.“

About Ruhr Schwefelsäure GmbH (RS)

RS is involved in the marketing, distribution and logistics of sulphur and sulphuric acid in Europe, primarily but not exclusively in Germany.  It is a wholly owned subsidiary of RAG Trading GmbH, a 100% subsidiary of RAG Coal International AG.  RS removes liquid sulphur from numerous desulphurization plants related to the oil and gas industry in Western and Eastern Europe, and ships the products to local customers using its own logistics network.  RS owns a fleet of trucks and trailers and arranges removal and delivery of sulphur and sulphuric acid by road, rail or barge.

RS is based in Essen, Germany and employs 59 staff.

About Chemtrade

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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