Boralex Power Income Fund Reports Solid Performance in First Quarter

Montreal, May 10, 2004 – Boralex Power Income Fund (the "Fund") announces that for the first quarter ended March 31, 2004, revenue from energy sales were up 59% at $32.4 million, compared to $20.4 million for the same quarter in 2003. The hydroelectric sector alone generated 43.4% of the Fund's consolidated revenue, compared to 9.4% for the same quarter last year. Earnings before amortization, depreciation, financial expenses and income taxes ("EBITDA") amounted to $21.1 million, compared to $10.8 million for the same period in 2003, an increase of 95%. Consequently, net earnings totaled $12.6 million or $0.21 per trust unit, compared to $7.5 million or $0.18 per trust unit a year earlier.

This growth is primarily due to the contribution of the hydroelectric power stations acquired on September 30, 2003, combined with the excellent performance of other power stations in this sector and the higher profitability of the wood-residue power stations.

In the first quarter ended March 31, 2004, distributions to unitholders totaled $13.3 million, compared to $8.9 million for the same period in 2003. Note that at October 22, 2003, the Fund announced an increase of approximately 3% over previous monthly distributions, due to the acquisition of two hydroelectric power stations in the United States, thereby raising the distribution per trust unit from $0.0729 to $0.0750.

As at March 31, 2004, the balance of cash and cash equivalents, including reserves for general purposes and major maintenance, was $40.8 million, or the equivalent of $0.69 per trust unit, compared to $33.5 million, or $0.57 per trust unit as at December 31, 2003.

Since the September 2003 acquisition of two hydroelectric power stations in the United States, the Fund has been exposed to exchange rate fluctuations in US and Canadian currency. Since the Fund makes its distributions in Canadian dollars, and wishes to ensure the distributions remain stable, it has completed transactions in derivative financial instruments. The combined impact of the two transactions will ensure that the Fund receives C$1.3994 per US dollar exchanged, on approximately 65% of the cash flow generated in US dollars, for the next five years.

Furthermore, Standard & Poors (S&P) has reassigned the Fund the stability rating SR-2 (positive outlook) following the September 30, 2003 acquisitions, and the Dominion Bond Rating System (DBRS) recently revised upwards the rating the Fund has held since it was created, increasing it from STA-3 (high) to STA-2 (low), due to the quality of its assets and the expected long-term stability of distributions to unitholders.

The Fund's first-quarter performance is better than expected and bodes well for the current year. The exceptional hydrological conditions, particularly in the northeastern US, the gradual improvement in the productivity of the Senneterre wood-residue power station and the contribution from the natural gas cogenerating station, along with the implementation of a long-term financial strategy, should further contribute to growth in results and ensure stable distributions to unitholders.

Boralex Power Income Fund is an unincorporated open-ended trust that indirectly owns ten power generating stations located in the province of Québec and the United States 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 190.0 MW. The Fund’s units are listed for trading on The Toronto Stock Exchange under the symbol BPT.UN.

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Click here to consult Results for First Quarter of 2004

For further information, please contact:

Mr. Jean-François Thibodeau
Vice-President and Chief Financial Officer
Boralex Power Inc.
Telephone: 514-985-1348
Fax: 514-985-1355
E-mail: jean-francois_thibodeau@cascades.com