Boralex Inc. Announces a Major Acquisition in the United States.

MONTREAL--(BUSINESS WIRE)--May 7, 1998--BORALEX(ME:BLX.A.) Boralex Inc. announces an agreement in principle with Stratton Energy Associates L.P., for the acquisition by its new American subsidiary, Boralex Industries, Inc., of a 90 percent interest in a 47.5 MW forestry biomass-fuelled generating facility located in Stratton, Maine. Our partner in this acquisition, Stratton Lumber, Inc. of Stratton Maine, will acquire the remaining 10 percent interest. This acquisition will increase the total capacity of Boralex to 109 MW, a 77 percent increase of its current capacity of 61.4 MW. It is also expected that this acquisition will add $17M to Boralex's sales and immediately impact its profitability.

Since its inception in 1989, the Stratton power station has sold its electricity to Central Maine Power under a twenty-year contract. Upon the conclusion of this transaction and receipt of regulatory approvals, this contract will be replaced by a three-year contract with Cinergy Capital & Trading Inc., a subsidiary of Cinergy Corp. Inc. (symbol: NYSE:CIN), one of the largest diversified energy companies in the U.S. When the three-year contract expires, Boralex will sell its electrical production in New England, which is expected to be fully deregulated by the year 2000.

The $16.8M U.S. ($24M Cdn) purchase price will be financed by Boralex. This transaction will further enable the Corporation to reach its goal of 200 MW critical mass by the year 2000.

Boralex will manage and operate the new facility, which will be linked to the control centre in Kingsey Falls, Quebec. This acquisition will result not only in the acquisition of an outstanding operating facility, but also the integration of new employees with expertise in the biomass energy field, an area which Boralex plans to develop in the coming years through acquisitions and new projects in the North Eastern United States, Canada and abroad.

This transaction is subject to the approval of the Federal Energy Regulatory Commission (FERC), and the negotiation of final agreements, and is expected be finalized by the end of this year.

Boralex Inc. is one of the largest private producers of hydroelectric and thermal power in Quebec. The Corporation owns 8 operating hydroelectric power stations with a total capacity of 30.4 MW as well as 31 MW natural gas-fired cogeneration plant.

CONTACT: Boralex Inc.

Mr. Jacques Gauthier, 514/282-2634

or

Boralex Inc.

Mr. Cyrille Vittecoq, 514/282-2647