K-BRO ANNOUNCES EXTENSION OF ALBERTA HEALTH SERVICES CONTRACTS

(TSX: KBL.UN)

EDMONTON, Nov. 25 /CNW/ - K-Bro Linen Income Fund ("K-Bro") is pleased to announce the extension of its standard and operating room linen contracts with Alberta Health Services ("AHS") for the Edmonton region which were due to expire on December 31, 2010.

The original ten-year standard linen contract, which was previously extended for seven years, has been extended for an additional two-year period commencing on January 1, 2011. At their option, AHS may further extend the contract for an additional year. This extension continues the existing comprehensive laundry and linen service programs for all volume in the Edmonton area on similar terms and conditions. In addition, the operating room linen contract has been extended for two years commencing on January 1, 2011.

"Alberta Health Services is a significant client of K-Bro and we are very pleased to receive extensions of these contracts," said Linda McCurdy, President and CEO. "Under the agreements we will continue to provide AHS with high quality processing, management and delivery services which we believe contribute to the well being of all Albertans."

Alberta Health Services is one of the largest integrated health providers in Canada, providing complete health services to 3.7 million Alberta residents through 400 facilities throughout the province.

CORPORATE PROFILE

K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently has seven processing plants in six Canadian cities: Quebec City, Toronto, Edmonton, Calgary, Vancouver and Victoria.

Additional information regarding K-Bro including the 2009 Annual Information Form and other required securities filings are available on our website at www.k-brolinen.com and on the Canadian Securities Administrators' website at www.sedar.com; the System for Electronic Document Analysis and Retrieval ("SEDAR").

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking information and statements ("forward-looking information") within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "guidance", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "budget", "strategy" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information pertaining to the following: the conversion of K-Bro to a corporation and the timing and tax effects thereof; the payment and amounts of future dividends; the time at which Canadian income taxes may be paid; and the listing of the shares of K-Bro Linen Inc. on the Toronto Stock Exchange.

The forward-looking information contained in this news release reflects several material factors and expectations and assumptions of K-Bro including, without limitation: the receipt of all necessary Unitholder, Court, stock exchange and other third party approvals; the continuance of existing (and in certain circumstances, the implementation of proposed) tax regimes; and the availability of cash to pay dividends following the conversion from a trust to a corporation. K-Bro believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable but no assurance can be given that these factors, expectations and assumptions will prove to be correct.

The forward-looking information included in this news release is not a guarantee of future conditions or performance and should not be unduly relied upon. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information including, without limitation: failure to receive all necessary Unitholder, Court, stock exchange and other third party approvals; changes in tax laws; acquisition and disposition activity that may affect the amount of tax pools and the time at which income taxes may be payable; insufficient cash to pay dividends; and certain other risks detailed from time to time in K-Bro's public disclosure documents.

The forward-looking information contained in this news release speak only as of the date of this news release, and none of K-Bro or its subsidiaries assumes any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.

For further information: Linda McCurdy, President & Chief Executive Officer; Chris Burrows, Vice-President & Chief Financial Officer, K-Bro Linen Income Fund, Phone: [phone], Email: [email protected], Web: www.k-brolinen.com