BFI Canada Income Fund Unitholders Approve Conversion to Corporation

Toronto, Ontario, September 2008

BFI Canada Income Fund (the “Fund”) (TSX:BFC.UN) today announced that at its Special Meeting of Unitholders held today in Toronto, Ontario, unitholders of the Fund approved the Fund’s conversion from an income trust to a corporation, to be named BFI Canada Ltd., by way of a plan of arrangement (the “Conversion”). The special resolution was adopted with 81.7 per cent of the voting units represented at the meeting in favour.

Subject to the approval of the Ontario Superior Court of Justice and regulatory approvals, the Conversion is expected to become effective on October 1, 2008. Pursuant to the Conversion, unitholders would receive, for each unit held, one common share of BFI Canada Ltd. on the effective date of the Conversion.

Subject to, and conditional upon the closing of the Conversion, it is also expected that the common shares of BFI Canada Ltd. will commence trading on the Toronto Stock Exchange under the symbol “BFC” on October 2, 2008, at which time the units of the Fund will be delisted from the Toronto Stock Exchange. The CUSIP for the common shares will be 05540R106.

“We look forward to becoming a corporation and leaving behind the uncertainties associated with the income trust sector,” said Keith Carrigan, Vice Chairman and Chief Executive Officer of the Fund. “We believe that as a corporation we will be compared with our publicly-held peers in the U.S. solid waste services sector and therefore positioned to attract a valuation that better reflects our financial and operating performance.”

Mr. Carrigan continued, “We will seek to soon list the corporation’s common shares on the New York Stock Exchange, in addition to the Toronto Stock Exchange. We expect this will significantly improve our ability to access capital in the U.S. markets and attract increased investment in the corporation’s shares, allowing us to fund our future growth plans. We are excited about the opportunities that exist for us to continue to build on our excellent track record of growth.”

FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements relating to the Fund’s operations or to the environment in which it operates, which are based on the Fund’s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, or are beyond the Fund’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in the Fund’s Annual Information Form for the period ended December 31, 2007. Consequently, readers should not rely on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, the Fund cannot assure unitholders that actual results will be consistent with these forward looking statements, and the Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

ABOUT BFI CANADA INCOME FUND

The Fund, through its operating subsidiaries, is one of North America’s largest full-service waste management companies, providing non-hazardous solid waste (“waste”) collection and disposal services to commercial, industrial, municipal and residential customers in five Canadian provinces and ten states in the United States (“U.S.”). The Fund provides service to over 1.8 million customers with vertically integrated collection and disposal assets. The Fund’s Canadian segment operates under the BFI Canada brand and is Canada’s second largest full-service waste management company providing vertically integrated waste collection and disposal services in the provinces of British Columbia, Alberta, Manitoba, Ontario, and Quebec. This segment provides service to 20 Canadian markets and operates five landfills, four transfer collection stations, seven material recovery facilities (“MRFs”), and one landfill gas to energy facility. The Fund’s U.S. south and northeast segments, collectively the U.S. segment or U.S. segments, operate under the IESI brand and provide vertically integrated waste collection and disposal services in two geographic regions: the south, consisting of various service areas in Texas, Louisiana, Oklahoma, Arkansas, Mississippi, and Missouri, and the northeast, consisting of various service areas in New York, New Jersey, Pennsylvania, and Maryland. This segment provides service to 39 U.S. markets and operates 17 landfills, 31 transfer collection stations, 10 material recovery facilities, and one transportation operation. The Fund’s units are listed on the Toronto Stock Exchange under the symbol BFC.UN. For more information on the Fund, visit www.bficanada.com.