Boralex Power Income Fund Acquires Two Power Stations in the US

Montréal (Québec), July 9, 2003 - Boralex Power Income Fund (TSX, BPT.UN), (the 'Fund'), announces that they have executed definitive agreements with Black Hills Generation Inc., a subsidiary of Black Hills Corporation (NYSE, BKH), ("Black Hills"), for the acquisition of two hydroelectric power stations located in the State of New York. The total purchase price of the two power stations purchased by the Fund is US $ 177.3 million (approximately $CDN 239.4 million).

The Fund, through a new U.S. subsidiary, will acquire two power stations, the Hudson Falls Facility, a 45.8 MW power station, and the South Glens Falls Facility, a 13.9 MW power station, both of which are located on the Hudson River near the Town of Glens Falls, N.Y. Each of these power stations benefits from a long-term power purchase agreement (PPA) with Niagara Mohawk Power Corporation (NIMO), an investment grade-rated regulated utility. The PPA's are in force until 2035 for the Hudson facility and until 2034 for the South Glens Falls facility, both at fixed power rates, which are currently above market prices. These two power stations are very efficient, state-of-the-art hydro facilities, which were constructed in the mid 1990's and have had a consistent operating history. These power stations will be managed by a US subsidiary of Boralex Inc. This transaction will increase the Fund's total installed capacity from 131.0 to 190.7 MW, a growth of approximately 46%.

This transaction is subject to customary closing conditions including regulatory approvals, which are expected to take up to 90 days.

As well, the Fund announces that it has entered into an agreement to sell to a syndicate of underwriters, led by National Bank Financial Inc. and TD Securities Inc., 16,875,000 Subscription Receipts at $9.80 per Subscription Receipt for gross proceeds of approximately $165.0 million. The Fund has also granted an option to the underwriters for an additional 1,625,000 Subscription Receipts exercisable until 48 hours prior to closing of the offering.

For the Fund, this transaction meets all of its acquisition objectives including the expected accretion of its distributions and adding high quality hydro assets which benefit from long term PPA's with a highly-rated utility. The Fund is adding assets and contractual arrangements of equal quality to those presently in the Fund. In addition to adding attractive hydro assets to its porfolio, this transaction adds to the geographic diversification of its asset base.

The Subscription Receipts are exchangeable on a one-on-one basis for units of the Fund on the closing of the acquisition of the Black Hills facilities without payment of additional consideration. The Subscription Receipts will be issued by way of short form prospectus to be filed with securities regulatory authorities across Canada. The Subscription Receipts have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States except pursuant to an exemption from registration. Closing of the Subscription Receipts offering is expected to occur on July, 28, 2003. The net proceeds of the Offering, combined with a committed increase in the Fund's term credit facility, will fully fund the acquisition.

Boralex Power Income Fund is an unincorporated open-ended trust that indirectly owns eight power generating stations located in the province of Québec producing energy from different sources including wood-residue or natural gas-fired thermal and cogenerating facilities as well as hydroelectric power stations. In total, these power stations have an installed capacity of 131.0 MW. The Fund's units are listed for trading on The Toronto Stock Exchange under the symbol BPT.UN.

The statements contained in this news release that are forward-looking are based on current expectations, and are subject to a number of uncertainties and risks, and actual results may differ materially. These uncertainties and risks include, but are not limited to: the dependence on certain key customers, competitive pressures and changes in market activity, risks associated with international operations and foreign exchange, legal proceedings, environmental, health and safety and other regulatory requirements. Further information can be found in the disclosure documents filed by Boralex Power Income Fund with the securities regulatory authorities, available at www.sedar.com.

A conference call to discuss the acquisition will be held on Wednesday, July, 9, 2003, at 5:00 p.m. The financial analysts are invited to dial 514-985-8001 or 1 888-942-8096.

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

Mr. Nicolas Fontaine
Director, Finance
Boralex Inc.
Telephone : (514) 282-2647
Fax : (514) 985-1355
E-mail : nfontaine@cascades.com

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