Clearwater Finance Inc. - Company Announcement

Clearwater Seafoods Income Fund Provides Update on Ongoing Strategic Review

Attention Business/Financial Editors:

Clearwater Seafoods Income Fund Provides Update on Ongoing Strategic Review     
Process                                                                         

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR

DISSEMINATION IN THE UNITED STATES/

HALIFAX, Oct. 28 /CNW/ - Clearwater Seafoods Income Fund (the “Fund”) (TSX:     
CLR.UN.                                                                         

CLR.DB, CLR.DB.A) and CS Acquisition Limited Partnership (the “Purchaser”)      
announced                                                                       

today that they will not be in a position to close the previously announced     
transaction pursuant to                                                         

which a partnership owned by a consortium led by Clearwater Fine Foods Inc.     
(“CFFI”), would                                                                 

acquire the business of the Fund.

This announcement comes as a result of the unprecedented uncertainty and        
volatility in global                                                            

financial markets and, in particular, Glitnir Banki hf being placed into        
receivership shortly before                                                     

the anticipated closing in      Glitnir was to provide approximately 10 per
cent of 
October.                        the 

financing required to complete the transaction. Despite the parties' diligent   
efforts to address the                                                          

financing issues, the parties have been unsuccessful in arranging alternative   
sources of financing,      

which was needed for the completion of the          The parties have terminated 
transaction.                                        the 

transaction agreement and confirmed that the going-private transaction will not 
be proceeding at                                                                

this time.

Tom Traves, Chairman of the Trustees, speaking on behalf of the Fund, stated,   
“The Trustees are                                                               

disappointed that this disruption of the financial markets did not allow the    
Fund and the                                                                    

consortium partners to complete the       However, we remain confident in the 
transaction.                              business 

and its prospects for the long term. The Trustees will continue to work with
CFFI to review 

alternatives to maximize value for the unit holders.”

CFFI continues to be supportive of the Trustees' efforts. John Risley, President
of CFFI, stated                                                                 

“Clearwater has and will continue to be a long term strategic investment for    
CFFI and we                                                                     

continue to believe in the long term prospects of the business. We will continue
to work with the                                                                

Fund and its advisors in reviewing its options as markets return to more normal 
conditions.”                                                                    

Commentary regarding forward-looking statements

This news release contains forward-looking statements. Such statements are      
subject to known                                                                

and unknown risks, uncertainties, and other factors outside management's control
that could                                                                      

cause actual results to differ materially from those expressed in the forward   
looking statements.                                                             

These statements are also based on various assumptions. The Fund does not assume

responsibility for the accuracy and completeness of the forward-looking         
statements and does not                                                         

undertake any obligation to publicly revise these forward-looking statements to 
reflect                                                                         

subsequent events or circumstances, other than as required by applicable laws.

About Clearwater

Clearwater is recognized for its consistent quality, wide diversity and reliable
delivery of                                                                     

premium seafood, including scallops, lobster, clams, coldwater shrimp, crab and 
ground fish.                                                                    

Since its founding in 1976, Clearwater has invested in science, people,         
technology, resource                                                            

- 2 -

ownership and resource management to preserve and grow its seafood resource.    
This                                                                            

commitment has allowed it to remain a leader in the global seafood market.

For further information: Robert Wight, Chief Financial Officer, Clearwater,     
(902) 457-2369;                                                                 

Tyrone Cotie, Director of Corporate Finance and Investor Relations, Clearwater, 
(902) 457-                                                                      

8181.

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Attachments:

clearwater news release oct 28 2008.pdf