CHEMTRADE LOGISTICS INCOME FUND PROVIDES UPDATE ON BEAUMONT PLANT

TORONTO, August 22, 2008 – Chemtrade Logistics Income Fund (TSX: CHE.UN) today provided an update on the situation at its Beaumont, Texas, plant following an explosion in the plant’s furnace on August 21, 2008.

• One of the two employees injured in the incident is expected to be released from the hospital this weekend.
• An investigation to determine the cause of the incident is underway. It is still too early to say how long the investigation will take, or how long the plant will remain shut down, although it is likely that the plant will be down for at least a month.
• Chemtrade carries property and business interruption insurance. The amounts of any claims cannot be determined until the investigation is complete and repairs are made so the plant can be safely restarted.

Mark Davis, President and Chief Executive Officer of Chemtrade, said, “We continue to monitor the status of our employees and offer any assistance they require. The investigation team will work as quickly as possible to complete a full assessment of the situation. Once the assessment is complete we will move ahead with the repairs needed to ensure a safe resumption of production. In the meantime we are working with customers to assist them to obtain alternative sources of product and logistics until we resume production.”

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of the world's largest suppliers of sulphuric acid, liquid sulphur dioxide and sodium hydrosulphite, and a leading processor of spent acid. Chemtrade is also a leading regional supplier of sulphur, sodium chlorate, phosphorous pentasulphide, and zinc oxide.

This news release contains certain statements which may constitute “forward-looking” statements within the meaning of certain securities laws, including the “safe harbour” provisions of the Securities Act (Ontario). The use of any of the words “anticipate”, “continue”, estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements.

This news release contains forward-looking statements about the objectives, strategies, financial condition, results of operations and businesses of the Fund. These statements are “forward-looking” as they are based on current expectations about our business and the markets we operate in, and on various estimates and assumptions.

• Forward-looking statements in this news release describe our expectations as of the date of this news release.
• Our actual results could be materially different from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, we cannot guarantee that any forward-looking statement will materialize.
• Forward-looking statements do not take into account the effect that transactions or non-recurring items announced or occurring after the statements are made may have on our business.
• We disclaim any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
• Risks that could cause our actual results to differ materially from our current expectations are discussed in the Risks and Uncertainties section of our MD&A.

Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at www.sedar.com.