Boralex Power Income Fund Reports Significant Growth in Third Quarter

Montreal, November 15, 2004 – Boralex Power Income Fund (the “Fund”) announces that for the third quarter ended September 30, 2004, revenue from energy sales increased to $23.6 million compared to $15.0 million for the same quarter in 2003. Earnings before amortization, depreciation, financial expenses and income taxes (“EBITDA”) were up 109 % to $13.4 million compared to $6.4 million a year earlier. As a result, net earnings grew 83% to $6.6 million, or $0.11 per trust unit, compared to $3.6 million or $0.09 per trust unit for the same period in 2003.

This growth is primarily due to the contribution of the two US hydroelectric power stations acquired on September 30, 2003 and to the favorable hydrological conditions experienced by the five other power plants during the quarter. Revenue in this segment almost quadrupled to $11.9 million compared to $3.0 million a year earlier, generating 50% of the Fund’s consolidated revenues. The wood-residue segment reported higher revenue due to higher prices, which more than offset the slight decrease in production. The natural-gas cogeneration segment reported lower revenue, mainly due to a temporary reduction in steam sales and the difference in the timing between the third and fourth quarters of the maintenance period at the Kingsey Falls plant.

In the third quarter ended September 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 $33.7 million compared to $33.5 million in 2003, or the equivalent of $0.57 per trust unit for both periods.

For the nine-month period ended September 30, 2004, revenue from energy sales reached $81.1 million, compared to $50.3 million for the same period in 2003, an increase of 61%. EBITDA totaled $48.5 million, up 103% over the $23.9 million reported in 2003. The Fund thus posted net earnings of $25.3 million or $0.43 per trust unit, compared to $14.6 million or $0.36 per trust unit for the same period in 2003.

This increase is largely due to the acquisition of the two US hydroelectric power plants and the contribution of existing power plants, which benefited from better hydrological conditions than last year. Results for the other segments were similar to results in the same period a year earlier.

For the nine months ended September 30, 2004, distributions to unitholders totaled $39.9 million, compared to $26.6 million in 2003. This difference takes into account the issue of 18.5 million additional units and the October 2003 increase in monthly distributions.

The Fund’s third quarter results were better than expected and augur well for the final quarter of the fiscal year. These results are mainly due to improved geographic and segment performance since September 2003. In addition, recent investments in the Senneterre wood-residue thermal power station should improve productivity at that plant. Lastly, the refinancing of the Fund’s bridge loan in July, combined with other factors such as the hedging of its cash flow denominated in US dollars and its long-term electricity sales contracts for a weighted average of 20 years will enable the Fund to make stable distributions in the fourth quarter of 2004 and subsequent 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.

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 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 Power Income Fund announces that it will hold a conference call with analysts to present its third quarter 2004 results on Monday, November 15, 2004 at 3:00 p.m..

Analysts are invited to join the call by dialing 514-940-2795 or 1-800-814-4859. The media and other interested parties can listen live. The call will be archived at 1-416-640-1917 or 1-877-289-8525, access code: 21101407, until November 22, 2004.


Click here to consult Results for third 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