Canadian Bond Rating Service Assigns S-2 Rating To KMS Power.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 9, 2000

(TSE:KMS.UN.)

In the last quarter of 1999, the KMS Power Income Fund, (the &uot;Fund&uot;) retained the Canadian Bond Rating Service, (&uot;CBRS&uot;), to establish a stability rating for the Fund. CBRS visited each of the revenue generating assets of the Fund, and conducted independent due diligence to arrive at their rating. CBRS has subsequently assigned an S-2 or &uot;very high&uot; stability rating to the Fund. In doing so, CBRS indicates that &uot;the S-2 rating signifies that funds rated in this category possess a very low degree of cash flow generation variability and a very high long term distribution sustainability. These funds typically provide products or services that are essential to the economy, and have clearly demonstrated their abilities to withstand adverse economic or trade conditions either nationally or internationally in scope.&uot;

The Fund retained CBRS to assign a stability rating in order to provide an independent opinion with respect to the operating and financial stability of the Fund and its assets. The Managers of the Fund are pleased to report this rating to the investment community, and look forward to the progressive acquisition and integration of additional revenue generating assets in future reporting periods.

KMS Power is an open-ended trust, operating independent power projects in Canada and the United States. Prior news releases and/or general information can be accessed through the KMS web site (http://www.kms-energy.com); by contacting KMS energy, Inc. at 1-888-959-2600; or through Michael O'Connor, Director, Investor Relations of the KMS Power Income Fund, at 888-705-3377.