Canadian Hydro Developers, Inc.

Canadian Hydro Developers, Inc.

March 19, 2007 10:34 ET

Canadian Hydro Updates Melancthon II Wind Project

CALGARY, ALBERTA--(CCNMatthews - March 19, 2007) - Canadian Hydro Developers, Inc. (TSX:KHD) ("Canadian Hydro" or the "Company") announced today an update on the environmental approvals process for the Melancthon II Wind Project ("Melancthon II"). The Director of the Ontario Ministry of the Environment's Environmental Assessment and Approvals Branch has advised the Company that an Individual Environmental Assessment is not required for Melancthon II (the "Director's Decision"). Based on a review of the project documentation, the provisions of the Environmental Screening Process ("ESP"), the issues raised in the Requests to Elevate the project's Environmental Screening Report ("ESR") to a higher level review, and other relevant matters required to be considered under the ESP, the Director is satisfied that the issues and concerns have been addressed by the work done to date by Canadian Hydro, or will be addressed in future work that is required to be carried out and to which commitments have been made by the Company in its ESR and other project documentation.

In accordance with the provisions of the ESP, the Director's Decision will become final on April 2, 2007, unless a request is made prior to then by one of the original requesters to have the Minister of the Environment review the Director's Decision. Should such a request be made, the Minister of the Environment has a target of 45 calendar days from receipt of all the necessary information to render a final decision with respect to the ESP. If no request is made by April 2, 2007, then Canadian Hydro will submit the required Statement of Completion and may proceed with Melancthon II, subject to any other permits or approvals required.

In a press release dated February 15, 2007, the Company announced the dates for the Ontario Municipal Board's ("OMB") hearings for planning approvals for Melancthon II. These hearings are still scheduled to commence on July 30 and September 11, 2007. The Company is continuing its assessment of the impact, if any, that these OMB hearing dates may have on the construction schedule and capital costs of Melancthon II. The Company will provide an update on this assessment in the coming months. Nevertheless, Canadian Hydro remains confident that all issues will be dealt with fairly through the approvals processes.

Canadian Hydro will fulfill its environmental commitments with respect to Melancthon II. This is consistent with the Company's focus on reducing society's environmental footprint and being good stewards of the environment, which are at the heart of Canadian Hydro's corporate and social responsibility practices and part of the Company's commitment to Building a Sustainable Future®.

Canadian Hydro is a developer, owner, and operator of 19 renewable energy generation facilities totaling net 265 MW in operation, with an additional 384 MW nearing construction. The renewable generation portfolio is diversified across three technologies (water, wind, and biomass) in the provinces of British Columbia, Alberta, and Ontario. This portfolio is unique in Canada as all facilities are certified, or slated for certification, under Environment Canada's EcoLogo(M) Program.

Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events or the Company's future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect, "may", "will", "potential", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.

Common shares outstanding: 132,018,723

The Toronto Stock Exchange has neither reviewed nor approved this press release.

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