Brascan Power

Canadian Hydro Developers, Inc.

Canadian Hydro Developers, Inc.

February 07, 2005 15:23 ET

Brascan Power And Canadian Hydro To Issue $70 Million Of Senior Secured Bonds


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BRASCAN POWER

AND CANADIAN HYDRO DEVELOPERS, INC.

TSX SYMBOL: KHD

FEBRUARY 7, 2005 - 15:23 ET

Brascan Power And Canadian Hydro To Issue $70 Million
Of Senior Secured Bonds

GATINEAU, QUEBEC and CALGARY, ALBERTA--(CCNMatthews - Feb. 7, 2005) -
Brascan Power and Canadian Hydro Developers, Inc. ("Canadian Hydro")
(TSX:KHD) announced today that they will issue, through a private
placement, C$70 million of senior secured bonds maturing in 10 years and
bearing an interest rate of 5.28 percent per annum. The transaction is
expected to close February 11, 2005.

The senior bonds are non-recourse to Brascan Power and Canadian Hydro
and are secured by the jointly owned 45 MW Pingston Hydroelectric
Generating Station. The net proceeds will be used for general corporate
and business purposes by Brascan Power and Canadian Hydro.

"The success of this debt financing at a favorable interest rate
reflects the high quality of the generating facility and its strong
credit profile," said Harry Goldgut, Co-Chair and Chief Executive
Officer of Brascan Power.

"We are extremely pleased with the debt financing of this marquis asset
together with Brascan Power," said John Keating, Chief Executive Officer
of Canadian Hydro. "The Pingston Hydroelectric Generating Station will
generate stable, long-term cash flow and is an ideal asset for an
interest only, 10 year debt financing."

The senior bonds have been assigned a preliminary rating of A (High),
with a Stable trend, by Dominion Bond Rating Service Limited (DBRS).

Scotia Capital and Trilon Securities acted as agents for this financing.

Brascan Power comprises the power generating, distribution and marketing
operations of Brascan Corporation (NYSE: BNN, TSX: BNN.LV.A). Brascan
Power has developed and successfully operated hydroelectric power
facilities, primarily in North America, for nearly 100 years. Brascan
Power's portfolio includes 119 hydroelectric generating stations located
on 37 river systems, three co-generation facilities and transmission and
distribution assets, principally in the northeast. Brascan Corporation
is an asset management company with a focus on real estate and power
generation.

Canadian Hydro (TSX: KHD) is a developer, owner and operator of 15 low
impact renewable energy power plants, representing 112 MW of net
installed capacity, which are all certified under the EcoLogo(M)
program. Canadian Hydro's construction projects, including the Grande
Prairie EcoPower® Centre, Upper Mamquam Hydroelectric and Melancthon
Grey Wind Projects are slated for certification under this program upon
completion. Canadian Hydro is passionate about meeting the goals of
investors and the needs of the environment. As industry leaders,
Canadian Hydro is focused on building a sustainable future for Canada
and with over 15 years experience, Canadian Hydro is a working model for
the unlimited development potential of low-impact renewable energy.

Note: This press release may 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 companies undertakes no obligation to publicly
update or revise any forward looking statements, whether as a result of
new information, future events or otherwise.

-30-

Contact Information