BFI Canada Wins Critical Expansion of Seneca Meadows Landfill

Date: August 28, 2007

Source: BFI Canada Income Fund

BFI Canada Income Fund Announces 31 Million Ton Expansion of IESI's Seneca Meadows Landfill

BFI Canada Income Fund (TSX:BFC.UN), today announced that its operating subsidiary, IESI Corporation, has received all of the necessary permits for the expansion of its Seneca Meadows Landfill in Waterloo, New York. The permits allow an additional 31 million tons of disposal capacity and extend the site life of the non-hazardous solid waste management facility to approximately 2023, based on current annual volumes.

"The Seneca Meadows site is an integral asset in our northeastern U.S. strategy," said Keith Carrigan, Vice Chairman and Chief Executive Officer of the Fund. "The capacity available at the Seneca Meadows landfill gives us the flexibility to expand internally generated collection volumes, thereby advancing our continual improvement in the region."

"We appreciate all of the support that Seneca Meadows Landfill has received from the local community, including local leaders, emergency service groups, and charitable organizations," said Mickey Flood, President of the Fund and President and Chief Executive Officer of IESI. "Along with its high operational standards and contributions to the local economy, Seneca Meadows plays a significant role in New York State's solid waste management plan and the State's desire to manage in-state generated waste. We are very pleased to be able to continue serving the needs of the New York population through the expansion of our site."

The Seneca Meadows site provides for the disposal of over two million tons of waste per year, and is also one of the largest waste tire recyclers in New York State, providing beneficial reuse of over two million tires per year.

Seneca Meadows plans to build on its record of environmental stewardship with the construction of a wetlands restoration and education complex, a landfill gas powered Renewable Resource Park, and an environmentally focused community education center.

Seneca Meadows Wetlands and Recreational Complex

Seneca Meadows' expansion application to the New York State Department of Environmental Conservation and the United States Army Corp of Engineers included a proposal for a 576-acre wetlands educational and recreational complex as a mitigation measure for using 71 acres of lower quality wetlands.

In developing this mitigation plan, Seneca Meadows worked closely with many local environmental organizations to develop a project that is not only environmentally responsible, but that also offers recreation and environmental education opportunities.

Seneca Meadows Renewable Resource Park

The 17.6 megawatt/hour capacity Seneca Meadows Renewable Resource Park is a landfill gas driven industrial development initiative, located adjacent to the landfill, with the potential to attract a variety of businesses that will utilize the energy provided by the landfill. This facility is expected to provide the equivalent power to satisfy the requirements of approximately 20,000 homes annually. Seneca Meadows has already secured its first tenant for the park: a hydroponic greenhouse company based in Lewiston, New York, that plans to produce tomatoes and peppers in over 20 acres of greenhouses, and provide 100 new jobs for the surrounding community. Construction of the greenhouses is scheduled to begin in the spring of 2008.

Seneca Meadows will continue working with the local Industrial Development Agency to attract additional environmentally conscious businesses to the park, and is also assessing educational programs and curriculum enhancing relationships with local high schools.

Seneca Meadows Community Education Center

Seneca Meadows is also constructing a community education center. Scheduled to open in 2008, the Seneca Meadows Community Education Center will include a fully equipped science laboratory and an educational exhibit room that will educate students and other members of the community about wetlands, recycling, waste management, alternative energy, environmental protection and environmental monitoring.

The initial objective of the Center will be to enhance the curriculums of local high school science classes, (with particular attention to biology, chemistry and environmental science), by giving students hands-on field and laboratory experience as they study a brook and wetlands that surround the Center. In the future, Seneca Meadows plans to broaden the educational programs to extend to more grade levels and community groups.

About BFI Canada Income Fund

BFI Canada Income Fund, through its subsidiaries, is one of North America's largest full-service waste management companies, providing non-hazardous solid waste collection and landfill disposal services for municipal, commercial, industrial and residential customers in five provinces and ten U.S. states. Its two brands, IESI and BFI Canada, are leaders in their respective markets and serve over 1.2 million customers with vertically integrated collection and disposal assets. The Fund's units are listed on the Toronto Stock Exchange under the symbol BFC.UN.

For more information, contact:
Chaya Cooperberg
BFI Canada Income Fund
Director, Investor Relations and Corporate Communications
(416) 401-7729
(416) 741-4565 (FAX)

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