Brookfield Asset Management Inc.: Final Prospectus Filed for Acadian Timber Income Fund.

TORONTO -- Brookfield Asset Management Inc. (TSX:BAM)(NYSE:BAM) today announced that Acadian Timber Income Fund (the "Fund") has filed a prospectus with securities regulatory authorities in each of the provinces and territories of Canada relating to an initial public offering of Fund units. The offering is expected to close on or about January 31, 2006.

Under the terms of the prospectus, the Fund will raise gross proceeds from the offering of approximately C$84.5 million and will issue approximately 8.45 million Fund units at C$10 per unit. This pricing provides a target yield of 8.25% for investors based on the Fund's estimated cash distribution per unit of C$0.825. Brookfield is retaining an approximate 27% interest in the Fund, assuming exercise of the over-allotment option that has been granted to the underwriters of the offering.

The Fund intends to use the proceeds of the offering to acquire an interest (which following closing will constitute all common membership interests) in an affiliate of Brookfield Asset Management which owns approximately 311,000 acres of freehold timberlands in Maine, as well as approximately 765,000 acres of freehold timberlands and related assets in New Brunswick from Fraser Papers Inc. (TSX:FPS).

On closing, Brookfield will receive cash proceeds of approximately C$9 million and will retain securities convertible into 4,507,030 units of the Fund, representing approximately 27% of the Fund units on a fully-diluted basis, assuming exercise of the over-allotment option that has been granted to the underwriters of the offering. Acadian will be managed by Brookfield Timberlands Management LP, a wholly-owned subsidiary of Brookfield Asset Management. The launch of this fund furthers Brookfield's objective of strengthening its infrastructure investment strategy and creates a platform for increasing its investment in timberlands.

This news release does not constitute an offer to sell or the solicitation of an offer to buy these securities. In addition, the Fund units have not been registered under the United States Securities Act of 1933, or any state securities laws, and may not be offered or sold in the United States.

Note: This press release and attachments contain "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.

Brookfield Asset Management Inc. (TSX:BAM) (NYSE:BAM)