Boralex Announces Results for Third Quarter of 2003

Montréal (Québec), August 7, 2003 - For the third quarter ended June 30, 2003, Boralex Inc. (the “Corporation”) posted revenue from energy sales of $12.3 million compared to $17.6 million for the same period of 2002. The quarter ended with a net loss of $2.1 million or $0.07 per share versus a net loss of $0.8 million or $0.03 per share for the same period of 2002. Weak electricity prices combined with lower productivity for the U.S.-based power stations are the main reasons for the reduction in the financial results.

For the nine month period ended June 30, 2003, revenue from energy sales amounted to $46.7 million, as opposed to $79.4 million for the same period of last year. The net loss was $1.5 million or $0.05 per share compared to net earnings of $51.0 million or $1.70 per share a year earlier. Results for this period also include an unusual gain of $49.7 million or $1.66 per share, net of income taxes, arising from the creation of the Boralex Power Income Fund (the “Fund”) on February 20, 2002. The significant changes in results for these two nine-month periods are largely due to the sale of seven power stations to the Fund, as well as the low energy prices and the inferior productivity of the Northeastern U.S. power stations.

During the third quarter ended June 30, 2003 and the nine month period of the fiscal year-to-date, the Company has also felt the effects of the closure of two wood residue-fired power stations in the United States, given that energy prices in the northeastern U.S. do not yet justify bringing these facilities back into service. On the other hand, the Blendecques natural gas cogeneration plant and the wind farm in Avignonet-Lauragais, France, continued to make positive contributions to results during the third quarter of 2003.

“Although we have significantly reduced operating costs at our U.S. power stations, Boralex is being affected by the energy price slump. However, the Corporation is doing what needs to be done to offset its vulnerability in the wood residue sector, to increase operating profitability and to assure its future growth by diversifying its operating sectors. As such, Boralex is continuing construction of its second wind energy facility in France and on July 9, 2003, signed a definitive agreement with respect to acquiring five hydroelectric power stations in New York State with a total installed capacity of 23 MW. For the quarter starting July 1, 2003, the Corporation does not anticipate any increases in electricity prices in the Northeastern U.S. nor any related improvement in the financial results for the power stations located in that region. Nonetheless, we remain confident that our development plans will enable Boralex to improve productivity and show a superior performance in the next fiscal year,” said Jacques Gauthier, President and Chief Executive Officer.

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, the Corporation 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. The Corporation 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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Conference call: Boralex Inc. third quarter results

Boralex Inc. will hold a conference call on August 8, 2003, at 9:00 am to present the third quarter results. Financial analysts are invited to take part by dialling 514-985-8002 or 1-800-284-3982. A recording of the conference call will be available as of August 15, 2003, by dialling 1-800-558-5253, access code 21157759.

Click here to consult the Boralex third Quarter Financial Results

For further information, please contact:

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

Mr. Pierre Dewolf
Account Manager
Renmark Financial Communications
Telephone: 514-939-3989
Fax: 514-939-3717
E-mail: pdewolf@renmarkfinancial.com

Mr. Barry Mire
Account Manager
Renmark Financial Communications
Telephone: 514-939-3989
Fax: 514-939-3717
E-mail: bmire@renmarkfinancial.com