Boralex Announces its 2003 Second Quarter Results

Montréal (Québec), May 9, 2003 – For the second quarter ended March 31, 2003, Boralex Inc. (the “Corporation?), reports that its revenue from energy sales totalled $18.7 million as compared to $32.8 million in the same period in the previous year. Moreover, the net earnings amounted to $1.3 million, or $0.04 per share, compared to $ 53.3 million, or $1.78 per share, for the corresponding period in 2002. For the six month period ended March 31, 2003, revenue from energy sales totalled $34.4 million, versus $61.8 million, in 2002, while the net earnings stood $0.6 million, or $0.02 per share, compared with $51.8 million, or $ 1.73 per share, for the same period in 2002.

The significant differences in revenue and net earnings between this year and last year are due mainly to the sale of seven power stations to the Boralex Power Income Fund (the “Fund”) on February 20, 2002. The revenue and net earnings from these power stations are now included in the results of the Fund rather than those of the Corporation. Furthermore, results for the second quarter and for the six months ended March 31, 2002 include an unusual gain, net of income taxes, of $49.7 million, or $1.66 per share, arising from this transaction. An analysis of the Corporation’s earnings for the three- and six-month periods is provided below.

Results for the second quarter and for the six months ended March 31, 2003 were affected by the shut down of two U.S. wood-residue fired power stations since the start of the current fiscal year, given that energy prices in the northeastern U.S. do not yet justify starting them up. On the other hand, in France, the Blendecques natural-gas fired cogeneration plant and the wind farm in Avignonet-Lauragais made positive contributions to results for the second quarter of 2003.

“Although current conditions in the U.S. electricity industry did not allow us to generate the anticipated profits for this quarter, we are especially satisfied with the effort made to increase the efficiency at our power stations, reducing operating costs, and building up our wood residue inventories to ensure normal operations for the summer period. We will continue to work towards improving our operating parameters to take advantage of better economic conditions once electricity prices in the United States recover. The summer season is generally a period with higher power prices and our New England power stations are poised to benefit from this, especially in view of anticipated higher prices for natural gas, a driving force behind the pricing of electricity in our markets,” said President and Chief Executive Officer, Mr. Jacques Gauthier.

Boralex owns and operates twelve power stations located in Québec, the United States and France, with an installed capacity of 229.0 MW, as well as an urban wood processing and recycling centre in Montréal. In addition, Boralex holds a 34% interest in Boralex Power Income Fund (the “Fund”), which owns eight power stations in Québec with an installed capacity of 131.0 MW. Management of the Fund‘s assets is provided by Boralex. Boralex employs more than 230 workers and its operations focus on four types of power generation in fields where Boralex has developed proven expertise. These are centered on renewable energy and green energy. (www.boralex.com).

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For further information, please contact:

Mr. Germain Lecours
Vice-President and Chief Financial Officer
Telephone: (514) 985-1348
Fax: (514) 985-1355
E-mail: germain_lecours@cascades.com

Mrs. Carole Villeneuve
Communications Director
Telephone: (514) 985-1353
Fax: (514) 985-1355
E-mail: cvilleneuve@cascades.com

Mr. Jacques Gauthier
President and Chief Executive Officer
Telephone: (514) 284-9890
Fax: (514) 284-9895
E-mail: jgauthier@cascades.com