Brascan Reports Cash Flow From Operations Of US$0.66 Per Share For The First Quarter Of 2003.

Business Editors

TORONTO--(BUSINESS WIRE)--April 29, 2003

Brascan (NYSE:BNN)(TSX:BNN.A) commences reporting financial results in US currency

Investors, analysts and other interested parties can access Brascan's 2003 First Quarter Results Shareholders Letter, as well as the Supplementary Information Package and Corporate Profile, which form the basis of this release, on Brascan's web site under the Investor Information/Financial Reports section at www.brascancorp.com.

The 2003 First Quarter Results conference call can be accessed via webcast on April 30, 2003 at 11:00 a.m. EST at www.brascancorp.com or via teleconference at 416-695-9753 or 1-877-888-7019, toll free in North America, at approximately 10:50 a.m. EST, using Reservation Number T408638S. The teleconference replay can be accessed at 416-695-5795 or 1-877-244-9051 using pass code 8638.

Brascan Corporation (TSX: BNN.A, NYSE: BNN) today reported cash flow from operations per share of US$0.66 in the first quarter. Operating cash flow for the first quarter of 2002 was US$0.50 per share excluding $20 million of gains on the sale of commercial real estate properties, and US$0.62 per share including these gains. On a comparable basis, cash flow per share increased 32% over the first quarter in 2002.

Total cash flow from operations increased to US$130 million, compared with US$114 million in 2002.

Results                           For the Three Months Ended March 31
---------------------------------------------------------------------
unaudited
(US$ millions, except                 2003               2002
per share information)
---------------------------------------------------------------------
                                                 Including  Excluding
                                                  property   property
                                               disposition disposition
                                                   gains       gains
Cash flow from operations            $ 130           $ 114       $ 94
   - per share                      $ 0.66          $ 0.62     $ 0.50
Net income                            $ 56            $ 63       $ 50
   - per share                      $ 0.23          $ 0.32     $ 0.24
---------------------------------------------------------------------

Net income for the first quarter of 2003 was US$0.23 per share compared with US$0.32 per share in the same quarter last year. Total net income was US$56 million. This compares with US$63 million in 2002, or US$50 million when the impact of commercial property gains are excluded.

Net income prior to property disposition gains and the non-cash adjustments related to the company's natural resource investments and gains increased to US$74 million or US$0.33 per share compared with US$51 million or US$0.24 per share in 2002.

Bruce Flatt, President and Chief Executive Officer of Brascan, stated "Brascan delivered outstanding results in a challenging economic environment, led in particular this quarter by strong residential real estate results. In addition we took advantage of the low interest rate environment and our ability to access the capital markets to strengthen our financial position. Lastly, we have followed up on our previously stated intention to adopt the US dollar as our functional and reporting currency during the quarter, which better reflects Brascan's underlying business operations which are largely conducted in US dollars."

First Quarter Achievements and Highlights

During the first quarter of 2003, Brascan undertook a number of initiatives to position the company for future value enhancement:

-- Announced plans to streamline the company's operating

structure by merging Brookfield Properties with its publicly

listed Canadian real estate operation.

-- Completed the spin-off of the company's residential operations

from its commercial property operations, creating two

stronger, more focused operations.

-- Opened a new 45 megawatt hydroelectric power station in

northern Ontario 

-- Acquired 350,000 acres of timberland and two paper mills as a

restructuring opportunity in Brascan's asset management

business.

-- Repurchased 3,017,500 million common shares of the company for

cancellation, at an average price of US$19.55 per share.

Additional Information

The Letter to Shareholders for the first quarter of 2003 is attached to this release and contains further information on the company's strategy, operations and financial results. This letter is available on the company's web site.

A Supplementary Information Package with additional financial information is posted on Brascan's web site (under Investor Information, Financial Reports) and should be read in conjunction with this press release. The Supplementary Information Package also contains management's estimates of the underlying value of the company's operating businesses based on their cash flows.

Dividend Declaration

On April 29, 2003, the Board of Directors approved an increase in the quarterly dividend of Cdn$0.01 per share, bringing the quarterly dividend to Cdn$0.26 per share, representing Cdn$1.04 per share on an annualized basis compared with the current annual dividend of Cdn$1.00 per share. The dividend will be payable August 31, 2003 to shareholders of record at the close of business on August 1, 2003. Information on all of the company's common and preferred share dividends can be found on Brascan's web site under Stock Information.

Brascan Profile

Brascan is a North American based real estate, power generation and asset management company. With US$15 billion of invested capital, current operations include 55 premier properties and 38 power generating facilities. Brascan is listed on the Toronto Stock Exchange under the symbol BNN.A and on the New York Stock Exchange under the symbol BNN.

Note: This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe", "expect", "anticipate", "intend", "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forward in the forward looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the company's 40-F filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

CONSOLIDATED STATEMENT OF INCOME
---------------------------------------------------------------------
Three months ended                      March 31             March 31
US$ millions, except per share amounts      2003                 2002
---------------------------------------------------------------------
Total revenues                            $ 667                 $ 705
---------------------------------------------------------------------
Net operating income
    Commercial property
     operations                             156                   159
    Power generating
     operations                              36                    32
    Financial operations                     50                    42
    Residential property
     operations                              35                    18
    Investment income                        20                    18
    Property disposition
     gains and other                         10                    47
---------------------------------------------------------------------
                                            307                   316
Expenses
   Interest expense                         116                   114
   Minority share of income
    before non-cash items                    63                    91
   Other operating costs                     14                    13
---------------------------------------------------------------------
Income before non-cash
 items                                      114                    98

   Depreciation and
    amortization                             35                    28
   Taxes and other non-cash
    items                                    28                    29
   Minority share of
    non-cash items                          (23)                  (23)
   Equity accounted loss
    from resource investments                18                     1
---------------------------------------------------------------------
Net income                                 $ 56                  $ 63
---------------------------------------------------------------------
---------------------------------------------------------------------
Net income per common
 share
    Diluted                               $0.23                 $0.32
    Basic                                 $0.24                 $0.33
---------------------------------------------------------------------
---------------------------------------------------------------------


CONSOLIDATED STATEMENT OF CASH FLOW FROM OPERATIONS
---------------------------------------------------------------------
Three months ended                              March 31     March 31
US$ millions, except per share amounts              2003         2002
---------------------------------------------------------------------
Income before non-cash items                      $ 114          $ 98
Dividends from Noranda Inc.                          12            12
Dividends from Nexfor Inc.                            4             4
---------------------------------------------------------------------
Cash flow from operations and gains               $ 130         $ 114
---------------------------------------------------------------------
---------------------------------------------------------------------
Cash flow from operations and gains per common
 share                                            $0.66         $0.62
---------------------------------------------------------------------
---------------------------------------------------------------------

CONSOLIDATED BALANCE SHEET
---------------------------------------------------------------------
                                 March 31   December 31   December 31
                                     2003          2002          2002
---------------------------------------------------------------------
                                       US$ millions     Cdn$ millions
                                       ------------     -------------
Assets
   Cash and cash equivalents      $ 466          $ 332         $ 525
   Financial assets                 739            718         1,134
   Accounts receivable and
    other                         1,341          1,348         2,130
   Operating assets
      Commercial properties       6,057          5,968         9,429
      Power generating plants     1,549          1,480         2,338
      Financial operations        1,479          1,328         2,099
      Residential properties        727            650         1,028
      Assets under development    1,469          1,412         2,231
Investment in Noranda
 Inc. and Nexfor Inc.             1,254          1,186         1,874
---------------------------------------------------------------------
                                $15,081        $14,422       $22,788
--------------------------------------------------------------------
--------------------------------------------------------------------
Liabilities
    Accounts and other
     payables                   $ 1,231        $ 1,262       $ 1,994
    Corporate borrowings          1,432          1,035         1,635
    Non-recourse borrowings
       Property specific
        mortgages                 4,991          4,992         7,887
       Other debt of
        subsidiaries              1,907          1,867         2,950
Shareholders' interests
    Minority interests of
     others in assets             1,471          1,456         2,301
    Preferred equity
        Corporate                   852            735         1,149
        Subsidiaries                461            450           710
    Common equity                 2,736          2,625         4,162
--------------------------------------------------------------------
                                $15,081        $14,422       $22,788
--------------------------------------------------------------------
--------------------------------------------------------------------

Note 1

The press release and accompanying consolidated financial statements make reference to cash flow from operations on a total and per share basis. Management uses cash flow from operations as a key measure to evaluate performance and to determine the underlying value of its businesses. The consolidated statement of cash flow from operations provides a full reconciliation between this measure and net income. Readers are encouraged to consider both measures in assessing Brascan's results.

LETTER TO SHAREHOLDERS

April 29, 2003

Fellow Shareholders

During the first three months of 2003 we continued to increase our cash flow from operations, backed by long term contracts in our power generating and real estate operations and our success in expanding our more predictable fee-based revenues within our asset management business.

We also enhanced our financial position and for the first time we are reporting in US dollars, a move that better reflects the geographic distribution of our asset base and revenues. As a result, the dollar amounts reported in this Letter to Shareholders, as well as accompanying Financial Results are in US dollars, unless otherwise noted.

In addition, our Board of Directors approved an increase in our annual dividend of Cdn$0.04 per share, bringing the quarterly dividend to Cdn$0.26 per share. The dividend will be payable August 31, 2003 to shareholders of record at the close of business on August 1, 2003.

The dividend increase reflects the Board's decision to increase the distributions over time by an amount that relates to the increases in cash flow generated within the business, ensuring that we retain sufficient capital to expand our businesses when compelling opportunities arise, repurchase shares when they are undervalued, and continue to build our equity base in order to enhance our corporate debt ratings.

As a result of our financial strength, we remain well positioned to benefit from opportunities that may arise over the balance of the year to add to our operating businesses and maintain cash flow growth.

FINANCIAL RESULTS ON TRACK

For the three months ended March 31, 2003, we reported cash flow from operations of US$0.66 per share. Operating cash flow for the first quarter of 2002 was US$0.50 per share, excluding $20 million of gains on the sale of commercial real estate properties, and US$0.62 per share when including these gains. On a comparable basis, cash flow per share increased 32% over the first quarter in 2002.

Net income for the first quarter of 2003 was US$0.23 per share compared with US$0.32 per share in the same quarter last year. Total net income was US$56 million. This compares with US$63 million in 2002, or US$50 million when the impact of commercial property gains are excluded. Net income prior to property disposition gains and the non-cash adjustments related to the company's natural resource investments and gains increased to US$74 million or US$0.33 per share compared with US$51 million or US$0.24 per share in 2002.

As a result of the above, and our continued focus on building sustainable cash flows across our businesses, we are confident that we are on track to achieve our cash flow goals set out for 2003.

VALUE CREATION

During the first quarter we undertook a number of value enhancing initiatives to further our growth objectives.

-- Strengthened our financial position. We continued to utilize

the low interest rate environment in the first three months of

2003 to access the capital markets and further strengthen our

balance sheet, raising approximately US$570 million of

capital. This included the issuance of a 30-year 7 3/8%

debenture in the amount of US$250 million for the first time

in the company's history, as well as a seven year, US$200

million 5 3/4% debenture, and Cdn$175 million of preferred

shares.

-- Completed the spin-off of our residential operations from our

commercial property operations, creating two stronger, more

focused operations. Following the announcement of the

transaction, the share price of the residential operations, in

which Brascan now owns a 50% direct interest, appreciated by

almost 40%, and our commercial operations also increased by

12%, leading to an annualized 60% total return for investors,

from these two segments of our real estate operations

-- Proceeded with plans to streamline our operating structure.

Subsequent to quarter end, we announced plans to merge

Brookfield Properties with its publicly listed Canadian

operation in a transaction valued at approximately US$60

million. The merger transaction, which is anticipated to close

within three months following a special shareholders meeting,

will further simplify our real estate ownership structure and

enhances the visibility of our operations for shareholders.

-- Opened a newly constructed hydroelectric power station in

Northern Ontario. The US$52 million Robert A. Dunford

Generating Station was completed on time and on budget. It

will be integrated with Brascan's 15 other hydroelectric

facilities in northern Ontario, creating operational

efficiencies and optimizing the power generated by each power

plant. The completion of this facility expands Brascan's total

generating capacity to over 1,650 megawatts and enhances our

position as a key participant in the Ontario electricity

markets.

-- Acquired 350,000 acres of timberlands and two low cost paper

mills as a restructuring opportunity within our asset

management business. Brascan was the successful bidder for the

operations of Great Northern Paper in Millinocket Maine for

US$90 million, comprised of US$63 million in cash and the

assumption US$27 million of debt. We believe our operational

and restructuring expertise will restore the profitability of

these operations and once achieved, the operations will be

either sold or integrated with Nexfor's paper operations, and

with our timberland initiative.

-- Repurchased 3 million common shares of the company for

cancellation during the quarter at an average price per share

of US$19.55. In addition, we received approval from the

securities regulators to renew our normal course issuer bid,

enabling us to purchase up to 14 million Class A Limited

Voting Shares from April 21, 2003 to April 20, 2004. A portion

of our free cash flow will continue to be allocated to

repurchase shares for value, as we continue to believe this

represents one of the best uses for our excess cash flow from

operations.

OPERATING BUSINESS HIGHLIGHTS

During the first quarter of 2003, we continued to focus on enhancing and strengthening the cash flows from our operating businesses.

Commercial Properties

Consistent with the general economic environment, leasing within the commercial real estate industry remained slow in the first quarter of 2003. However, our strategic focus on long-term leases to high quality office tenants insulated our results from these market conditions. In fact, as a result of the move by tenants to quality, we continue to proactively lease space to new firms looking to upgrade their premises, and also to current tenants who wish to extend their leases in our high quality properties.

These operations met all of their financial targets, and total operating income on a same property basis increased 5% year over year.

During the first quarter of 2003, we leased over 750,000 square feet of space, which represents 70% of the space contractually expiring in 2003. Our Toronto properties accounted for the strongest leasing activity in our portfolio with almost 500,000 square feet in renewals and new space leased on attractive terms. Today, our properties are 95% leased with few leases maturing over the next three years.

Power Generation

In accordance with normal weather patterns, the first quarter in our hydroelectricity business is usually slower than the balance of the year. This year was no exception, with particularly low winter water levels in Quebec and Maine. Despite this, water levels are increasing due to spring runoff and we are confident that we will achieve our operational targets set for the entire year.

Revenues remain approximately 85% contracted on a forward basis with an average contract life of 17 years.

We are active on a number of corporate development initiatives, which if they come to fruition, could add meaningfully to our power operations in the future. These opportunities are largely in the United States, and continue to be focused on hydroelectric generation, but could also include other forms of electricity generation.

Asset Management

The privatization of our financial business in 2002 has enabled us to more rapidly convert our financial business into an asset management operation, and more actively develop new products and services utilizing our operational expertise in real estate, power generation and resources. These are primarily specialized funds created in our areas of expertise, with co-investments by institutional investors seeking alternatives to traditional debt and equity markets.

During the first quarter of 2003, we led the recapitalization of Criimi Mae, a commercial real estate mortgage company which services and owns commercial mortgage backed securities. We provided US$30 million in subordinated debt financing, acquired a 10% ownership position and arranged US$300 million in new financing for the company. We are integrating this company's financing platform with our mezzanine real estate lending business to maximize value from these operations.

We also recently initiated the Brascan Timberland Investment Fund and recruited a well-regarded forest products executive to lead the development of the fund. In addition to the approximately 2 million acres of timberland we currently control, we expect to build a business in Canada with institutional partners, focused on the inherent characteristics of current cash flow in combination with long term capital appreciation.

We acquired 5% of the Canary Wharf Group, a U.K. listed public real estate company for investment purposes. The company owns an 86-acre commercial property development in London, England with 14 million square feet of high quality office properties either completed or under construction, substantially leased on a long-term basis. The purchases reflect our efforts to broaden the range of our investment activities within our main areas of operation.

Residential Property Operations

Our residential property operations continued to benefit from the low interest rate environment in which consumers took the opportunity to acquire new homes. Virtually all regions of our residential operations are ahead of plan with significant forward sales of lots and homes. Operating income was unseasonably strong, with results, including lot sales, close to double that of the first quarter of 2002.

At the end of the first quarter of 2003, we have contracts in place for approximately 57% of the planned closings for the year, a figure which includes net new orders during the quarter and the backlog at the end of 2002. We anticipate that this strong housing activity will continue throughout 2003 and our results from this operation will benefit accordingly.

In response to the continued strong market conditions, we have taken steps to sell inventory that is not required for our housing operation in the near term. At the end of the first quarter, our San Diego operations closed the sale of a development land parcel for net sale proceeds of US$52 million. Further sales of this nature are expected over the balance of 2003.

Investments

While Noranda's share price decreased in the quarter, continued progress towards reduced costs, increased business synergies, and improving metal prices, are starting to positively impact Noranda's operating results with EBITDA up 9% year over year. However, the stronger Canadian dollar, increased energy prices, a strike at one its smelter operations and the previously announced magnesium restructuring charge, offset these improved operating results.

Our support for the initiatives underway at Noranda to increase returns, recently included the subscription for US$100 million of preferred shares, which together with a public issue of an equivalent amount, strengthened Noranda's capital base by US$200 million.

Nexfor's paper operations were similarly impacted by a weak economy. However, there was strong demand for oriented strandboard to fuel the North American residential building market. With OSB prices currently above trend prices, Nexfor is positioned to generate substantially higher cash flows from this segment of its operations.

In Closing

We are fortunate that our focus on high quality, long term cash flow producing assets has enabled us to generate strong operating results in an otherwise, generally difficult economic environment. We will continue to broaden our reach within the real estate, power generation and asset management area and, with significant liquidity at our disposal, we are well positioned to pursue growth initiatives that may arise in the current environment.

As always, we will proceed cautiously as we continue to build Brascan's operating base with the singular objective of delivering increased return on equity for our shareholders.

J. Bruce Flatt

President and Chief Executive Officer

April 29, 2003