BNN Investments Ltd.

BNN Investments Ltd.

March 11, 2005 11:17 ET

BNN Investments Announces Fourth Quarter Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BNN INVESTMENTS LTD.

TSX SYMBOL: BNB

MARCH 11, 2005 - 11:17 ET

BNN Investments Announces Fourth Quarter Results

TORONTO, ONTARIO--(CCNMatthews - March 11, 2005) - BNN Investments Ltd.
(TSX:BNB) today announced its financial results for the year ended
December 31, 2004.

The company recorded a net loss of $0.5 million for the year ended
December 31, 2004, compared with a net income of $1.0 million in 2003.
After providing for preferred share dividend obligations, the net loss
per common share of BNN Investments for 2004 was $1.48 compared with
$1.70 in 2003.

BNN Investments is a publicly listed investment company whose principal
mandate is to provide its common shareholders with a leveraged
investment in the securities of Brascan Corporation. The company
currently owns 17,418,000 Class A Limited Voting shares of Brascan.



Consolidated Statement of Operations
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Three months ended Year ended
December 31 December 31
(unaudited) ------------------ ------------------
$thousands, except per share
amounts 2004 2003 2004 2003
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Investment income $3,025 $2,552 $12,246 $10,987
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Expenses
Operating 281 313 885 909
Interest - 56 56 602
Amortization of deferred
financing costs 258 224 1,319 897
Subsidiary preferred
share dividends 2,943 1,954 10,517 7,813
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3,739 2,547 13,034 10,221
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Net income (loss) before
unusual items (457) 5 (531) 766
Capital gain on sale of investment - - - 277
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Net income (loss) (457) 5 (531) 1,043
Preferred share dividends (1,238) (1,488) (5,202) (5,950)
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Net loss for common shareholders $(1,695) $(1,483) $(5,733) $(4,097)
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Net loss per common share $(0.77) $(0.49) $(1.48) $(1.70)
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Net Asset Value

The calculated net asset value of the company's common shares as at
December 31, 2004 based on the stock market price of Brascan's Class A
shares of $43.15 was $88.84 per share. A $1.00 change in the value of
Brascan's Class A shares results in a $3.20 change in the calculated net
asset value of a BNN Investments common share.



Statement of Financial Position
---------------------------------------------------------------------
As at December 31, 2004
-----------------------
(unaudited) Net Asset Book
$thousands, except per share amounts Value(5) Value
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Assets
Cash and cash equivalents $10,282 $10,282
Brascan Corporation(1) 751,587 333,967
Deferred financing costs - 4,194
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$761,869 $348,443
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Liabilities(2)
Accounts payable and provisions 1,992 1,992
Retractable preferred shares(3) 205,000 205,000
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206,992 206,992
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Shareholders' Equity
Preferred shares 70,750 70,750
Common shares 484,127 70,701
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554,877 141,451
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$761,869 $348,443
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Per Common Share(4) $88.84 $12.97
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1) The investment in Brascan represents 17,418,000 Class A Limited
Voting shares of Brascan with a market value of $43.15 per share as at
December 31, 2004.

2) The net asset value of liabilities approximates their respective book
values.

3) Represents $205 million retractable preferred shares issued by a
subsidiary of the company, BNN Split Corp.

4) As at December 31, 2004, there were 5,449,418 common shares of the
company issued and outstanding.

5) Net asset value per common share does not take into account tax and
transaction costs on disposition. The tax value of the company's assets
exceeds the book value by approximately $76 million.

Note: This news release contains "forward-looking statements". 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 achievements expressed or
implied by such forward-looking statements. Factors that could cause
actual results to differ materially from those set forth 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 continuous disclosure
documents. The company undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    BNN Investments Ltd.
    Brian D. Lawson
    President and Chief Executive Officer
    (416) 359-8620