Countryside Power Income Fund

Countryside Power Income Fund

January 13, 2006 17:32 ET

Countryside Power Income Fund Completes Foreign Exchange Hedging Program

LONDON, ONTARIO--(CCNMatthews - Jan. 13, 2006) - Countryside Power Income Fund (the "Fund") (TSX:COU.UN) today announced that in December 2005, a subsidiary of the Fund entered into a call option with a Schedule 1 Canadian bank that hedges a substantial portion of the cash flow from its California-based cogeneration facilities ("Cogen Facilities") between exchange rates of US$0.84 and US$0.89 per CDN$1.00 for three years. With this transaction, Countryside has now hedged foreign currency exchange risk for substantially all U.S. dollar amounts that are required to meet the Fund's Canadian dollar-denominated obligations and anticipated unitholder distributions.

In addition to the acquired hedge, the interest coupon due under Countryside Canada Power Inc.'s (wholly-owned subsidiary of the Fund) recently issued U.S. dollar-denominated, fixed rate, exchangeable subordinated debentures already provides a natural hedge for approximately 40 per cent of the U.S. dollar cash flows from the Cogen Facilities that have been used to meet Canadian dollar obligations and anticipated unitholder distributions.

Countryside receives cash flow from three primary sources: (i) the two Cogen Facilities; (ii) its two district energy systems, which generate revenue in Canadian dollars; and (iii) its investment in U.S.-based renewable power projects, which is mainly in the form of a loan denominated in Canadian dollars, thereby shielding the Fund from currency exchange rate risk.

About Countryside Power Income Fund

Countryside Power Income Fund has investments in two district energy systems in Canada, with a combined thermal and electric generation capacity of approximately 122 megawatts, and two gas-fired cogeneration plants in California with a combined power generation capacity of 94 megawatts. In addition, the Fund has an indirect investment in 22 renewable power and energy projects located in the United States, which currently have approximately 51 megawatts of electric generation capacity and sold approximately 750,000 MMBtus of boiler fuel in 2004. The Fund's investment in the projects consists of loans to, and a convertible royalty interest in, U.S. Energy Biogas Corp.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events and financial and operating results of the Fund that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed from time to time in the Fund's annual information form dated March 31, 2005 and the Fund and Countryside Canada's prospectus dated November 8, 2005. Due to the potential impact of these factors, the Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

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