Boralex Inc. and Cascades Energie - 1995 - Inc. - announcement.

MONTREAL, Quebec--(BUSINESS WIRE)--Dec. 22, 1995--CASCADES INC. (TSE, ME: CAS ME: BLX.A) Boralex Inc. and Cascades Energie (1995) Inc. announce that the transactions described in the Memorandum of Agreement entered into on October 27, 1995 were completed today.

Pursuant to these transactions, Boralex Inc. has acquired all of the hydro-electricity producing assets of Cascades Energie (1995) Inc. including its interests in four projects currently in operation, in projects in development and in various management agreements relating to the generating stations owned by third parties, the whole in consideration of the issue by Boralex Inc. of a total of 137,810,640 Class A Shares. Boralex Inc. has also acquired all of the issued and outstanding shares of 3089-8183 Quebec Inc. and advances totalling $2,094,000 due by 3089-8183 Quebec Inc. to its shareholders, the whole in consideration of the issue by Boralex Inc. of 16,708,081 Class A Shares. 3089-8183 Quebec Inc. holds a 50 percent-interest in MegEner Inc; the remaining 50 percent is already held by Boralex Inc.

Boralex Inc. will pay a dividend in the aggregate amount of $1 155 000 ( or $0,09 per share) payable to the holders of Class A Shares of record on December 20, 1995.

These transactions have been approved by the shareholders of Boralex Inc. at a special meeting held for that purpose on December 20, 1995. 99,9 percent of the holders of Class A Shares present or represented at the meeting approved these transactions.

As a result of these transactions, Boralex Inc. now holds, directly or indirectly, interests in six projects currently in operation in the province of Quebec having a total production capacity of 48.7 MW.

Boralex Inc. also holds, directly or indirectly, interests in six hydro-electric projects in Quebec and in the United States which are at various phases of their development. If these projects are all completed, they will aggregate a production capacity of approximately 12,2 MW.

These transactions will allow Boralex Inc. to increase the number of its power generating stations and thereby create a critical mass which will give it a more competitive position on the market. In addition, the geographic diversification of the sites will reduce the overall exposure to hydrologic risks and ensure a greater stability in revenues. Finally, Boralex Inc. will be able to ensure a better planning of its worksites as well as better coordination of the manpower and the financing required to sustain its development.

Following the completion of these transactions, Messrs. Roch M. Harnois, Gilles G. Sauve, Andre Benoit, Marcel Bergeron and Andre Godin resigned as directors and were replaced by Messrs. Bernard Lemaire, Laurent Lemaire, Alain Lemaire, Germain Benoit and Jacques Gauthier, respectively. Mr. Yvon Renaud was appointed chairman of the board, Mr. Bernard Lemaire, president, and Mr. Jacques Gauthier, vice-president of Boralex Inc.

Upon the announcement of the conclusion of the Memorandum of Agreement, the Montreal Exchange halted trading on the securities of Boralex Inc. It is expected that trading will resume as soon as the listing formalities will have been completed, which should occur in the next few days.

As a result of these transactions, Cascades Energie (1995) Inc. is the holder of 82,5 percent of the issued and outstanding Class A Shares of Boralex Inc. Cascades Energie (1995) Inc. is a wholly-owned subsidiary of Cascades Inc.

CONTACT: Boralex Inc

M. Jacques Gauthier, Executive vice-president,

514/282-2634 REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-236-4266 or

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