Boralex Reports Improved Fourth Quarter 2004 Results

Montreal, Quebec, November 17, 2004 – Boralex Inc. (TSX, BLX.A), the “Corporation” announces that for the fourth quarter ended September 30, 2004, earnings before interest, taxes, depreciation and amortization (EBITDA) rose $3.1 million to $2.2 million, compared to a loss of $0.9 million for the same period last year. This increase is largely due to non-recurring charges reported in 2003, energy marketing optimization in the wood-residue segment and the contribution from the hydroelectric segment, which grew by $1.1 million. The fourth quarter of 2004 ended with a net loss of $0.3 million, or $0.01 per share, compared to a net loss of $4.2 million or $0.14 per share in 2003.

For the fourth quarter ended September 30, 2004, revenue from the sale of energy from continuing operations was $16.0 million, compared to $17.4 million for the same period in fiscal 2003. This 8% decrease is due to the reduction in volumes in the wood-residue thermal power stations and the stronger Canadian dollar, partially offset by the contribution from the five US hydroelectric power plants acquired at the end of fiscal 2003 and the commercial start-up of a second wind farm in France.

In the twelve-month period ended September 30, 2004, revenue from sale of energy from continuing operations grew 13% to $72.4 million, compared to $64.1 million for the same period last year. This increase is principally due to the September 2003 acquisitions and higher prices. However, these were partially offset by the stronger Canadian dollar and the strategy of marketing energy during peak periods for the wood-residue segment.

As a result, the EBITDA from continuing operations increased 117% in 2004 to $11.7 million, versus $5.4 million in 2003. Finally, the contribution of Boralex Power Income Fund to earnings was improved by $2.2 million over to the previous fiscal year. Consequently, for the twelve-month period of 2004, the net loss was $0.1 million, compared to a net loss of $5.7 million, or $0.19 per share in 2003.

Claude Audet, president and CEO of Boralex, said “This progress is due to our greater diversification, proactive management of wood-residue volumes and generation during peak periods, as well as our leadership in the production of renewable energy. These initiatives are a few examples of business decisions made to improve Boralex’s performance. Other initiatives will be implemented to continue the growth and diversification of our asset portfolio; these will be combined with the restarting of the Ashland power plant in Maine, and commercial start-up of our third wind farm in France scheduled for December 2004.”

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 16 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 close to 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 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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Fourth quarter 2004 conference call
Boralex Inc. announces that it will hold a conference call with analysts to present its fourth quarter 2004 results on Thursday, November 18, 2004 at 3 p.m.

Analysts are invited to join the call by dialing 514-940-2795 or 1-800-814-4853. 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: 21101416, until November 22, 2004.


Click here to consult the Boralex Fourth Quarter Income

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