Brascan Announces Completion Of The Acquisition Of Hydroelectric Generating Assets In Northern Maine.

Business Editors

TORONTO--(BUSINESS WIRE)--Feb. 4, 2002

Brascan Corporation (TSE: BNN.A, NYSE: BNN) today announced completion of the acquisition of six hydroelectric generating stations and related transmission facilities in northern Maine from Great Northern Paper Inc. for a total consideration of US$156.5 million.

This acquisition includes the following assets:

- Six hydroelectric generating stations located on the Penobscot River with a
combined generating capacity of 126 megawatts ("MW"), capable of producing on
average 730,000 MW hours of electricity annually.

- Eleven water storage dams with approximately 300,000 MW hours of storage
capacity, which provide the flexibility to maximize the system's on-peak
generation.

- A 20 MW transmission interconnection to the New England Power Pool.

This acquisition will contribute immediately to cash flow from Brascan's power generating operations. These assets add to the company's solid base of low cost, long-life power assets which generate sustainable cash flows, and further diversify the company's watersheds. They also present opportunities for expanding Brascan's access to interconnected energy markets in the United States.

The acquisition was completed through Great Lakes Hydro Income Fund, in which Brascan owns 50% of the outstanding units. In total, Brascan operates over 1,110 MW of generating capacity, with a further 130 MW now under development.

Brascan Corporation owns, manages and builds businesses which generate sustainable cash flows. Current operations are largely in the real estate, financial and power generation sectors. In addition, Brascan holds investments in the resource sector. Brascan is listed on The Toronto Stock Exchange under the symbol BNN.A and the New York Stock Exchange under the symbol BNN.