CHEMTRADE ANNOUNCES ONE OF ITS SODIUM FORMATE SUPPLIERS TO CLOSE OPERATIONS IN FIRST QUARTER OF 2006

TORONTO, December 2, 2005 - Chemtrade Logistics Income Fund (TSX: CHE.UN) announced today that one of its suppliers of sodium formate, an input in the production of powder sodium hydosulphite (SHS), will be closing its US pentaerythritol (PE) manufacturing facility in the first quarter of 2006, citing escalating US energy and raw material costs.  Sodium formate is a byproduct of PE manufacturing.  The plant has historically been the primary supplier of sodium formate used by Chemtrade and was expected to supply about one-quarter of Chemtrade’s needs in 2006.

Mark Davis, President and Chief Executive Officer of Chemtrade, said that even prior to the shutdown announcement the business was contracting with offshore supply sources and does not expect that the operations will suffer due to lack of supply.  He continued, “We indicated in our third quarter release that Hurricanes Katrina and Rita had affected the supply and cost of various raw materials and energy.  The uncertainty around these issues continues to make it difficult to predict 2006 input costs and earnings.”

Mr. Davis noted that Chemtrade is the only North American producer of powder SHS.  “We have previously announced a 6 cent a pound price increase on the product we sell and are working with our customers to implement the announced increase.  This increase offsets some but by no means all of the significant cost increases incurred by the SHS business following the Hurricanes.”

Chemtrade is one of the world’s largest suppliers of sulphuric acid, liquid sulphur dioxide (SO2) and sodium hydrosulphite (SHS), and a leading processor of spent acid, particularly in the U.S. Gulf Coast region.   Chemtrade is also a leading regional supplier of sulphur, sodium chlorate and phosphorous pentasulphide, and also produces zinc oxide at three North American locations.

For further information: