Canadian Equipment Rental Fund Limited Partnership Announces 2006 Year End Results and Special Distribution

NEWS RELEASE

For Immediate Release

TSX Venture Symbol: CFL.UN

Calgary, April 13, 2007: Mr. Wayne Wadley, President of CERF GP Corp., the general partner of Canadian Equipment Rental Fund Limited Partnership (the “Partnership”) announces financial and operating results for the year ended December 31, 2006. Based on the strong financial performance over the past year, the board of directors of the general partner has declared that, in addition to the previously announced distribution on March 15, 2007 of 13 cents per unit, a special distribution will also be made. The special distribution, in the amount of $0.065 per unit, will be made to unitholders of record as of April 20, 2007. The special distribution is not inductive of future performance but the general partner expects to continue distributions on a quarterly basis.

Highlights from the past year include:

• More than doubled revenue from $4,657,000 to $10,169,000.
• Increased net income by 289% from $588,000 to $2,291,000.
• Net income per unit tripled from $0.21 in 2005 to $0.63 in 2006.
• Equity more than tripled from $2,145,000 at the end of 2005 to $7,587,000 in 2006 while the number of partnership units outstanding increased by only 63% to 5,114,119 from 3,136,301.
• Raised $4 million in equity in the fall which helped us grow our fleet asset base from $4.3 million to $9 million. We saw some benefit of that investment in the form of increased revenues in the last quarter of 2006. The majority of the benefits of our investment will come through in 2007 and later, as we go forward into yet another projected record year.
• All of these record results were achieved in conjunction with total cash distributions of $1,249,494 to the unitholders.
   

Mr. Wadley comments, “Since our inception, we had identified three key strategic initiatives that we continue to actively pursue. We’re focused on driving up revenue, margin growth and increasing our return on capital by meeting our customers’ needs. We feel that we have made excellent progress in achieving these initiatives in 2006 and will continue our pursuit in 2007.

Strong results for the three prior quarterly reporting periods, translated into a very solid year end result for the Partnership. Revenues increased 118% previous nine month reporting period of December 31, 2005. This growth was stimulated by high customer demand coupled with net additions to the rental fleet of $6,060,931. The $4,000,000 financing closed in October provided for much of this fleet expansion. The management team was able to quickly turn some of this capital into equipment that was delivered into the field and generating rental revenue. More importantly, operating margins increased from 36% to 45% year over year due to the increased fleet and economies of the larger scale of operations. A decrease in the operating expenses as a percentage of non-sales revenue reflects higher revenue for 2006 compared to semi-fixed costs such as rent, labor and vehicle operating costs.

Along with our customers, we’re proud to be a part of the development and growth of Alberta’s infrastructure. The diversity of projects that our customers work on is quite remarkable. Our rental equipment has been used for a wide range of markets including residential, commercial and industrial projects. To name just a few examples, our customers have built theatres, student residences and condominiums as well as maintained industrial stacks at refineries and concrete plants. They have even used our equipment to repair golf greens, heat hot chocolate at the Heritage Classic Hockey Game, remove moisture and cure concrete. Their needs are virtually endless and we have been fortunate to be part of their success.

There is every indication that 2007 will continue to be another strong year. Contractors in various industries still report a backlog of projects slated for the upcoming year. They report the complexity of their projects to build on time and on budget while dealing with manpower shortages, building code changes and increasing safety requirements has challenged them to look at how they currently conduct their business. One of the alternatives they’ve looked at is how rental equipment plays a role in managing these issues. It’s been our mission to empower our customers with the equipment knowledge they need to make informed decisions. For these reasons, we continue to see more companies regard their need for rental equipment as a necessary component of project planning process. In comparison to the European market which is at 60% market saturation, the demand for rentals in North America is still in its infancy at less than 50% and each year we continue to see increased demand for rental equipment in all sectors.”