Brascan Adjustable Rate Trust I

Brascan Adjustable Rate Trust I

July 31, 2008 16:51 ET

Brascan Adjustable Rate Trust I Announces Termination of Fund

TORONTO, ONTARIO--(Marketwire - July 31, 2008) - Brascan Adjustable Rate Trust I (the "Fund") (TSX:BAO.UN) today announced that its manager has determined that the Fund's net asset value has declined sufficiently to cause the termination of the Fund. Consequently, effective August 1, 2008, the Fund will terminate, with a view to distributing to unitholders any net assets remaining after settlement of its forward contract and liabilities.

There continues to be significant ongoing volatility and disruption in the market for US mortgage-backed securities. As of July 25, 2008, the most recent date on which the Fund's net asset value was calculated, the price per unit was $0.00, and market conditions have not improved since that time. Accordingly, the manager has determined that the best course of action is to proceed with a more orderly liquidation of the Fund, which is expected to occur within the next 30 days. As a result, all unitholders, inclusive of those who submitted units for redemption as of July 31, 2008 will receive net assets, if any, attributable to their units following the liquidation.

The previously announced distribution of $0.03 per trust unit to unitholders of record on July 31, 2008, will be payable in any case on August 15, 2008. Any additional payments arising from the termination of the Fund will be made as soon as practicable.

The Fund is listed on the TSX under the symbol BAO.UN.

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This news release contains forward looking information. Actual future results may differ materially. The risks, uncertainties and other factors that could influence actual results are described in the Brascan Adjustable Rate Trust I prospectus and other documents filed with regulatory authorities.

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