Boralex Improves Quarterly Results


Montreal, Quebec, August 13, 2004 – Boralex Inc. (TSX, BLX.A), the "Corporation" announces that for the third quarter ended June 30, 2004, revenue from the sale of energy from continuing operations rose to $15.9 million, compared to $12.3 million for the same period in fiscal 2003. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew $1.8 million to $1.3 million, compared to a loss of $0.5 million for the same period last year. The third quarter of 2004 ended with a net loss of $0.8 million or $0.03 per share, compared to a net loss of $2.1 million or $0.07 per share in 2003.

During the nine-month period ended June 30, 2004, revenue from the sale of energy from continuing operations grew 21% to $56.5 million, compared to $46.7 million for the same period last year. The EBITDA from continuing operations increased 51% in 2004 to $9.5 million, versus $6.3 million in 2003. For this period in 2004, net earnings reached $0.2 million or $0.01, compared to a net loss of $1.5 million or $0.05 in 2003. The additional contribution to pre-tax earnings from the Corporation’s interest in the Boralex Power Income Fund was about $1.9 million.

The acquisition of five hydroelectric power stations in the United States on September 30, 2003 and the start-up in November 2003 of a second wind farm in France generated a 21% increase in revenue from energy sales and a $1.7 million increase in EBITDA. In addition, efforts of the Corporation to diversify its portfolio and implement a management strategy aimed at optimizing its US plants in the wood-residue segment contributed to this improvement. Furthermore, the significant increase in electricity prices on the US market during the quarter partially offset wood residue costs, which are still high. The excellent performance of the Boralex Power Income Fund in the third quarter enabled the Corporation to report an additional contribution of $0.2 million related to its interest in the Fund.

Claude Audet, president and CEO of Boralex, said “the growth of Boralex will continue to be supported by the initiatives to optimize operations, particularly in the wood-residue sector, to increase its profitability and to pursue its development. Indeed, our third wind power site with an installed capacity of 12 MW, in Nibas, France, should be ready for commercial start-up in November 2004. All the energy it generates will be sold to Électricité de France (EDF) under a 15-year contract.”

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 240.0 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 191.0 MW. Management of the Fund's assets is provided by Boralex. (www.boralex.com)
Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, increases in raw material costs, fluctuations in selling prices, fluctuations in currency exchange rates and adverse changes in general market and industry conditions and other factors listed in the Corporation’s Ontario Securities Commission filings.

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Third quarter 2004 conference call

Boralex Inc. announces that it will hold a conference call with analysts to present its third quarter 2004 results on Friday, August 13, 2004 at 3:00 p.m., EDT.

Analysts are invited to join the call by dialing 514-985-8001 or 1-800-284-3982. The media and other interested parties can listen live. The call will be archived at 1-416-626-4100 or 1-800-558-5253, access code: 21205166, until August 20, 2004.

Click here to consult Results for Third Quarter of 2004

For further information, please contact:

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

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

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