Royal Utilities Income Fund Announces January 2008 Cash Distribution

TORONTO, ONTARIO, Jan 22 (MARKET WIRE) --
Royal Utilities Income Fund (the "Fund") (TSX: RU.UN) announced today
that its Audit Committee, on behalf of the Board of Trustees, has
approved a cash distribution of $0.07997 per unit, payable on February
15, 2008 to unitholders of record as of January 31, 2008.

About Royal Utilities Income Fund

The Fund is an unincorporated, open-ended, limited purpose trust
established under the laws of Alberta. The Fund directly holds all of the
shares of Prairie Mines & Royalty Ltd. (the "Company"), which is the
largest thermal coal producer in Canada. The Company owns and operates
the Paintearth, Sheerness, Genesee (50% joint venture interest), Poplar
River, Boundary Dam and Bienfait mines, and operates the Highvale and
Whitewood mines under contract. A total of 36 million tonnes of coal was
produced by the Company in 2006.

The Company also holds a portfolio of mineral rights located in Alberta
and Saskatchewan on which it earns royalties from the production of coal
and potash.

The Company's revenue is derived from two principal sources: the supply
of thermal coal under long-term contracts with the major electric
utilities in Alberta and Saskatchewan, and royalty payments received from
certain utility customers and other parties based on coal and potash
production.

Forward-looking Statements

This news release contains forward-looking statements. Forward-looking
statements generally can be identified by the use of statements that
include words such as "believe", "expect", "anticipate", "intend",
"plan", "forecast", "likely", "may" or other similar words or phrases.
Similarly, statements contained in the "Outlook" section of this news
release including those with respect to expectations concerning assets,
prices, revenues, costs, distributions, earnings, production, market
conditions, capital expenditures, commodity demand, risks, corporate
objectives and plans or goals, are or may be forward-looking statements.
These forward-looking statements are not based on historic facts, but
rather on current expectations, assumptions and projections about future
events. These forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that are beyond the Fund's ability
to control or predict. Actual results and developments may differ
materially from those contemplated by this news release depending on,
among others, such key factors as business and economic conditions in
Canada.

Key factors that may result in material differences between actual
results and developments and those contemplated by this news release also
include the supply, demand and prices for the Fund's products; dependence
on significant customers; deliveries; production levels, production and
other anticipated and unanticipated costs and expenses; energy costs;
interest rates; foreign exchange rates; rates of inflation; changes in
tax legislation; the timing, capital costs and financing arrangements
associated with development projects; the timing of the receipt of
government and other approvals; risks related to collecting accounts
receivable; risks associated with mining, processing and exploration
activities; potential imprecision of reserve estimates; market
competition; developments affecting labour relations and the market for
skilled workers; environmental and utility industry regulation; and other
risk factors listed in the Fund's prospectus dated June 16, 2006, and the
Fund's Management's Discussion and Analysis for the year ended December
31, 2006 from time to time in the Fund's continuous disclosure documents
such as its annual report, annual information form and management
information circular.

Further, any forward-looking statement speaks only as of the date on
which such statement is made, and except as required by applicable law,
the Fund undertakes no obligation, to update any forward-looking
statements.

Contacts:
Royal Utilities Income Fund
Investor Relations
(416) 934-7655

Copyright 2008, Market Wire, All rights reserved.

-0-