Boralex Announces Its Second Quarter 2004 Results

Montreal, Quebec, May 20, 2004 – Boralex Inc. (TSX, BLX.A), the "Corporation" announces that for the second quarter ended March 31, 2004, revenue from the sale of energy from continuing operations rose to $22.6 million, compared to $18.7 million for the same period in fiscal 2003. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew to $5.4 million, versus $4.4 million for the same period last year. The second quarter of 2004 ended with net earnings of $1.2 million or $0.04 per share, compared to $1.3 million or $0.04 per share in 2003.

This 20.9% increase in revenue from the sale of energy is mainly due to the contribution of the U.S. hydroelectric power stations acquired in September 2003, which have had very good water flow conditions. The start-up of a second wind farm in France and the fact that the Corporation increased its interest in the Blendeques natural gas cogeneration plant in France to 100% on January 23, 2003 also contributed to the increase. These are also the reasons for the improvement in the EBITDA, which grew by $1.3 million. Continuing operations, however, posted a slight decrease in earnings, due mainly to the higher amortization and financing costs related to the Corporation's recent expansion. Moreover, the wood residue segment, which reported higher productivity, was affected by higher fuel prices.

During the six-month period ended March 31, 2004, revenue from the sale of energy from continuing operations grew 17.9% to $40.6 million, compared to $34.4 million for the same period last year. The EBITDA from continuing operations increased 21.9% in 2004 to $8.3 million, versus $6.8 million in 2003. For this period in 2004, net earnings reached $1.0 million, compared to $0.6 million in 2003.

The Corporation's performance for the six-month period ended March 31, 2004 is largely due to the factors mentioned above for the second quarter of 2004, combined with an additional $1.6 million contribution to earnings before income taxes, derived from the superior performance of the Boralex Power Income Fund.

In the second quarter Boralex acquired a 95% interest in the Nibas S.A.S. wind farm. When this facility is completed, it will have six wind turbines with a capacity of 2.0 MW each, doubling the Corporation's installed capacity in this segment. Construction at the site will start in May 2004 and start-up is slated for November 2004. All energy generated will be sold to Électricité de France (EDF) under a 15-year contract.

Claude Audet, president and CEO of Boralex, said "We are confident that the Corporation will continue to benefit from the solid contribution of its hydroelectric power stations in New York State, from productivity improvements at the wind sites in France and upgrades to improve efficiency at the natural gas cogeneration plant. Although the procurement of wood residue remains difficult for the production of wood-residue energy in the northeastern United States, the sale of the Athens facility in Maine, and our continued efforts to diversify our sources of supply and increase fuel quality, combined with stronger electricity prices, should help improve the Corporation's results in coming quarters."

Boralex focuses on four types of power generation: hydroelectric power, thermal or cogeneration power from natural gas or wood residue, and wind power. These are all fields where Boralex has developed proven expertise and they are all centered on renewable energy. The Corporation employs more than 240 workers and owns 17 power stations in Quebec, the United States and France, with an installed capacity of close to 240 MW, as well as an urban wood processing and recycling centre in Montreal. In addition, the Corporation holds a 23% interest in Boralex Power Income Fund which owns 10 power stations in Quebec and the United States with an installed capacity of 190 MW. Management of the Fund's assets is provided by Boralex. (www.boralex.com)

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Click here to consult Results for Second Quarter of 2004

For further information, please contact:

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