Vicwest Completes $50 Million Convertible Debenture Offering

Toronto Stock Exchange: VIC.UN

OAKVILLE, ON, Sept. 30, 2010 /CNW/ - Vicwest Income Fund (the "Fund") today announced that it has successfully completed its offering of 6.00% convertible unsecured subordinated debentures at a price of $1,000 per debenture, for total gross proceeds of $50 million. The debentures have been listed on the TSX under the symbol VIC.DB. Net proceeds of the Offering will be used to repay indebtedness and for general corporate purposes.

"This offering serves to further increase our financial strength and flexibility as we advance our business strategy and grow in our chosen domestic and international markets," said Colin Osborne, President and Chief Executive Officer. "We look forward to deploying the capital in support of meaningful value creation for our unitholders."

The Offering was completed on a bought deal basis by a syndicate of underwriters co-led by Scotia Capital Inc. and National Bank Financial Inc.

At the holder's option, the debentures may be converted into trust units of the Fund at any time prior to the earlier of the maturity date and the date of redemption specified by the Fund at a conversion price of $19.25 per unit, subject to adjustment in certain circumstances.

The debentures are direct, unsecured obligations of the Fund and mature on December 31, 2015. They accrue interest at the rate of 6.00% per annum, payable semi-annually commencing December 31, 2010. The debentures will not be redeemable before and including December 31, 2013. On or after January 1, 2014 and prior to January 1, 2015, the Fund may, at its option, redeem the debentures, in whole or in part, provided that the volume weighted average trading price of the trust units of the Fund on the Toronto Stock Exchange during the 20 consecutive trading days ending five trading days preceding the date on which the notice of redemption is given is not less than 125% of the conversion price.  On or after January 1, 2015 and prior to the maturity date, the Fund may, at its option, redeem the debentures, in whole or in part, from time to time, at par plus accrued and unpaid interest.

The securities offered have not and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

ABOUT VICWEST INCOME FUND
The Fund is one of Canada's leading manufacturers and distributors of building construction products, and steel containment products for agricultural grain, fertilizer and liquid storage. Through its Vicwest Building Products division, headquartered in Oakville, Ontario, the Fund fabricates and markets metal roofing, siding and other metal building products under the Vicwest, Mercury Metals, Valley Truss & Metal and RCA Metal trade names. The Fund's Westeel Storage Solutions division, headquartered in Winnipeg, Manitoba, manufactures storage solutions for agricultural grain and fertilizer, as well as liquid storage tanks and accessories. These products are manufactured and distributed under the trade names Westeel, Northern Steel Industries and NSI.  The Fund has 15 manufacturing facilities strategically located across Canada with approximately 1,200 dedicated employees committed to providing superior quality products and delivering excellent service to customers in chosen markets.

FORWARD-LOOKING STATEMENTS
Certain statements in this news release, including in particular statements regarding the Offering, may constitute "forward-looking" statements. When used in this press release, such statements use words, including but not limited to, "may", "will", "expect", "believe", "plan", "intend", "anticipate", "future" and other similar terminology. These forward-looking statements reflect the current expectations of the Fund's management regarding future events but involve known and unknown risks, uncertainties and other factors which may cause the outcome of the Offering or the actual results, performance or achievements of the Fund to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual events could differ materially from those projected herein and depend on a number of factors. These factors would include, but are not limited to, dependence on market and economic conditions, sales and margin risk, competition, information system risks, availability of supply of products, risks associated with the introduction of new product lines, product design risk, environmental risks, volatility of commodity prices, inventory risks, customer and vendor risks, acquisition and integration risks, availability of credit, credit risks, interest rate risks, regulatory risks and employee retention risks. There can be no assurance that the Offering will have the intended, or a positive, effect on the Fund's financial position, prospects for growth or future performance. In addition, there are numerous risks associated with an investment in the debentures, or trust units of the Fund, which are also further described in the "Risks and Uncertainties Related to the Units of the Fund" section of our annual information form dated March 22, 2010 and our other public filings on SEDAR.  These forward-looking statements speak only as of the date of this press release. Except as required by applicable securities laws, the Fund does not undertake, and specifically disclaims, any obligation to update or revise any forward looking information, whether as a result of new information, future developments or otherwise, except as required by applicable law.

For further information:

Colin Osborne			John Slattery
President & Chief Executive Officer			Executive Vice President & Chief Financial Officer
Vicwest Income Fund			Vicwest Income Fund
Tel:  [phone]			Tel:  [phone]
Fax: [phone]			Fax: [phone]