Tree Island Receives Notice of Default From Lenders

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 10, 2009) - Tree Island Wire Income Fund (the "Fund") (TSX:TIL.UN) today announced that it has received a written notice of default from its lenders under the GE credit facilities. To date, the lenders have not exercised their default-related rights under the credit facilities.

As previously announced, as a result of the global economic crisis which led to an unprecedented decrease in global steel prices during the fourth quarter of 2008, Tree Island's raw material and finished goods inventories are overvalued based on current market prices. In accordance with GAAP requirements and subject to final audit, the Fund anticipates that approximately $18 million of this overvaluation will be written down in the fourth quarter of fiscal 2008. This has resulted in the Fund being out of compliance with its current debt services ratio covenant and triggered the notice of default under the GE credit facilities.

The Fund is actively seeking to renegotiate the terms of the credit facilities with its lenders. However, there is no assurance that such attempts will be successful or that any amendment to the credit facilities will be agreed upon. A failure to obtain waivers, modifications or concessions from its lenders could result in the lenders pursuing the remedies provided for under the credit facilities in the future.

About the Fund

The Fund was launched on November 12, 2002, with the completion of an Initial Public Offering. There are 21,960,447 units of the Fund outstanding, representing a 100% ownership interest in Tree Island.

The Fund's performance depends entirely on the performance of Tree Island.

About Tree Island Industries

Headquartered in Richmond, British Columbia, Tree Island Industries produces wire products for a diverse range of construction, agricultural, manufacturing and industrial applications. Its products include bright wire, stainless steel wire and galvanized wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products, engineered structural mesh, fencing and other fabricated wire products. The company markets these products under the Tree Island, TI Imports and HK Universe brand names. Tree Island also owns and operates a Hong Kong-based trading company that provides internationally sourced products to Tree Island and its customers worldwide.