CHEMTRADE LOGISTICS INCOME FUND TO IDENTIFY AND EVALUATE STRATEGIC ALTERNATIVES

TORONTO, February 28, 2007 -- Chemtrade Logistics Income Fund (“Chemtrade” or the “Fund”) (TSX: CHE.UN) today announced that the Board of Trustees has initiated a process to identify and evaluate strategic alternatives available to Chemtrade to maximize unitholder value. The process is being undertaken in response to recent events including the recently proposed legislation to tax income trusts. The Board of Trustees has engaged BMO Capital Markets and Scotia Capital as financial advisors to assist with this ongoing process. Chemtrade emphasized that there can be no assurance that the review will result in any specific strategic or financial transaction and no timetable has been set for its completion.

“Chemtrade has a unique opportunity to leverage our assets and stable cash flow to further build the business and deliver long term unitholder value,” said Mark Davis, Chief Executive Officer of Chemtrade. “However, in light of the recent announcements by the Department of Finance, the Board of Trustees believes it is appropriate to undertake a comprehensive review of all our strategic options to determine the best method to deliver value to our unitholders.”

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world.  Chemtrade is one of the world's largest suppliers of sulphuric acid, liquid sulphur dioxide and sodium hydrosulphite, and a leading processor of spent acid.  Chemtrade is also a leading regional supplier of sulphur, sodium chlorate, phosphorous pentasulphide, and zinc oxide.

This news release contains certain statements which may constitute “forward-looking” statements within the meaning of certain securities laws, including the “safe harbour” provisions of the Securities Act (Ontario).  The use of any of the words “anticipate”, “continue”, estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements.

• This news release contains forward-looking statements about the objectives, strategies, financial condition, results of operations and businesses of the Fund.  These statements are “forward-looking” as they are based on current expectations about our business and the markets we operate in, and on various estimates and assumptions.
• Forward-looking statements in this news release describe our expectations as of the date of this news release.
• Our actual results could be materially different from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate.  As a result, we cannot guarantee that any forward-looking statement will materialize.
• Forward-looking statements do not take into account the effect that transactions or non-recurring items announced or occurring after the statements are made may have on our business.
• We disclaim any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
• Risks that could cause our actual results to differ materially from our current expectations are discussed in the Risks and Uncertainties section of our MD&A.

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