ALDERSYDE, Alta., (May 3, 2005) — Western trucking and oilfield services giant Mullen Transportation announced plans to convert itself into an income trust.

The carrier’s board has unanimously approved a plan to convert the company into a trust and provide monthly payments to unitholders from Mullen’s cash flow.

In making its determination the board considered a number of factors, including: That the cash distribution to unitholders will provide an attractive rate of return without impairing Mullen’s ability to finance capital expenditures and continue with its growth by way of acquisitions.

Also, a trust structure provides a “tax efficient” structure for providing cash distributions to shareholders.

“Mullen has a reasonably stable and diverse revenue base and a predictable yet flexible requirement for capital expenditures,” the company said in a release. “A trust structure provides Mullen with a competitive structure to continue its growth through acquisitions.”

The mutual fund trust to be created under the plan will
continue most of the operations currently conducted by Mullen. The Company is currently reviewing and considering its alternatives for its northern assets, including the possibility of spinning them out to its shareholders.

Mullen says the conversion into a trust will have little impact on the company. The existing management will continue to oversee the operations.