Boralex Power Income Fund: Significant Growth in the Second Quarter


Montreal, August 10, 2004 – Boralex Power Income Fund (the “Fund”) announces that for the second quarter ended June 30, 2004, revenue from energy sales were up 68% at $25.1 million, compared to $14.9 million for the same quarter in 2003. Earnings before amortization, depreciation, financial expenses and income taxes (“EBITDA”) amounted to $14.0 million, compared to $6.7 million a year earlier, an increase of 109%. Consequently, net earnings totaled $6.2 million or $0.10 per trust unit, compared to $3.5 million or $0.09 per trust unit for the same period in 2003.

This growth is primarily due to the contribution of the hydroelectric segment and was sustained by good hydrological conditions and the performance of the U.S. power stations acquired on September 30, 2003. The hydroelectric segment alone accounted for 53% of the Fund’s consolidated revenue, compared to 23% a year earlier. The other segments benefited from a contractual energy prices increase of about 3%.

In the second quarter ended June 30, 2004, distributions to unitholders totaled $13.3 million, compared to $8.9 million in 2003. The balance of cash and cash equivalents, including reserves for general purposes and major maintenance, was $42.3 million or the equivalent of $0.72 per trust unit, compared to $12.0 million or $0.30 per trust unit in 2003.

For the six-month period ended June 30, 2004, revenue from energy sales reached $57.5 million, compared to $35.3 million in the corresponding quarter in 2003, an increase of 63%. EBITDA totaled $35.1 million, up 101% over the $17.5 million reported in 2003. The Fund thus posted net earnings of $18.7 million or $0.32 per trust unit, compared to $11.0 million or $0.27 per trust unit for the same period in 2003.

This increase is largely due to the acquisition of two U.S. power stations on September 30, 2003, and superior hydrological conditions over last year in our existing power stations, combined with the higher productivity of the power plants in the other segments.

For the six months ended June 30, 2004, distributions to unitholders totaled $26.6 million, compared to $17.8 million in 2003. This difference takes into account the issue of 18.5 million additional units and the October 2003 increase in monthly distributions following the acquisition of the two U.S. hydroelectric power stations on September 30, 2003.

On July 12, 2004, the Fund announced the closing of two private placements to refinance the bridge loans put in place for the September 2003 acquisition of two U.S. hydroelectric power stations. The two placements consist of senior secured notes, one for US$70.7 million, paying 6.2% interest and maturing on August 31, 2013, and the other for CA$35.0 million, paying 6.6% interest and maturing on July 9, 2014. These issues will help the Fund benefit from low and stable financing costs for close to 10 years. Moreover, the CA$35.0 million senior secured notes will also allow for additional debt to be issued in the future, assuming certain covenants are met, allowing the Fund to combine stable long-term financing costs with flexibility for future growth.

The Fund’s notable performance in the second quarter is reflected in its higher than anticipated results, primarily due to the performance of the power stations in the northeastern United States. This, coupled with greater diversification in terms of geography and production sources, as well as the refinancing of its bridge loans, will allow the Fund to ensure stable distributions in 2004 and future years.

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 Second 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

Mr. Claude Audet
President and Chief Operating Officer
Boralex Power Inc.
Telephone: (514) 284-9890
Fax: (514) 284-9895
E-mail: caudet@cascades.com


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