Boralex Inc. and Cascades Energie Inc. consolidate their operations.

MONTREAL, Quebec--(BUSINESS WIRE)--Oct. 27, 1995--Cascades Energie Inc (ME, TSE: CAS ) Boralex Inc (ME: BLX.A)--Boralex Inc. ("Boralex") and Cascades Energie Inc. ("Cascades Energie") announce that they have signed an agreement with the shareholders of 3089-8183 Quebec Inc. ("3089"), pursuant to which Boralex has agreed, subject to the fulfilment of certain conditions, to acquire the energy-producing assets of Cascades Energie as well as 3089's interest in MegEner Inc. ("MegEner"), a private corporation owned in equal parts by Boralex and 3089.

For the purposes of the proposed transaction, the assets of Cascades Energie have been valued at $29,982,000 and 3089's interest in MegEner at $3,635,000. These assets will be acquired in consideration of the issue to Cascades Energy and the shareholders of 3089 of 137,810,640 and 16,708,081 common shares of Boralex respectively at a price of approximately $0.2175 per share.

Upon the completion of the transaction, MegEner will become a wholly owned subsidiary of Boralex and the outstanding common shares of Boralex will be divided among Cascades Energie who will hold 82.5 percent, the shareholders of 3089 who will hold 10 percent and the current shareholders of Boralex who will hold 7.5 percent.

In connection with this transaction, Boralex has also agreed to pay a dividend of $1,155,000 or $0.0922 per share to its shareholders of record immediately before the completion of the transaction.

This transaction is subject to the usual conditions, including a due diligence review to be completed within 30 days, the approval of various regulatory authorities, including the Montreal Exchange, and the approval of the shareholders of Boralex which will be sought at a meeting to be called for that purpose.

The common shares of Boralex have been listed on the Montreal Exchange since 1984. Until 1991, its principal activity was the acquisition and development of oil properties located in Alberta. Since 1991, it has concentrated its efforts towards the development of hydroelectric projects. To that end, it incorporated MegEner which it owns equally with 3089. MegEner currently operates a 2.4 MW power station on the St-Lawrence, at the St-Lawrence Seaway regulation structures, and a 6.4 MW power station on the Yamaska river in St-Hyacinthe.

Cascades Energies, has its head office at Kingsey-Falls, and is a major private electricity producer in Quebec. It has controlling interests in a 4.2 MW power station on the Montmorency river in Beauport, a 1.5 MW power station on the Saint-Fran ois river in the municipality of East-Angus and a 9.8 MW power station on the Lievre river in the municipality of Buckingham. Cascades Energies also owns 50 percent of a 32 MW co-generation station located in Kingsey-Falls.

In addition, Cascades Energie operates seven hydroelectrical power stations on the Sault-au-Cochon river in Forestville, the Jacques-Cartier river in Donnacona, the Nicolet river in Sainte-Brigitte-des- Saults and the Winneway river in the municipality of Laforce. These seven stations have a total production capacity exceeding 25MW.

Cascades Energie is a wholly owned subsidiary of Cascades Inc., the head office of which is also located in Kingsey-Falls in Quebec. This association will contribute to the development of several other hydroelectric projects in Quebec, Canada and in the United States.

It is expected that the new business combination will give Cascades Energie and Boralex a competitive advantage during the coming years. In addition, the geographic diversification of the various power stations will reduce the overall exposure to hydrologic risks and ensure a greater stability in revenues.

CONTACT: Mr. Yvon Renaud