Countryside Power Income Fund

Countryside Power Income Fund

March 23, 2005 07:30 ET

Countryside Power Income Fund Reports Financial Results for Fiscal 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: COUNTRYSIDE POWER INCOME FUND

TSX SYMBOL: COU.UN

MARCH 23, 2005 - 07:30 ET

Countryside Power Income Fund Reports Financial
Results for Fiscal 2004

LONDON, ONTARIO--(CCNMatthews - March 23, 2005) - NOT FOR DISTRIBUTION
IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

First Fiscal Period Meets Key Performance Targets

Countryside Power Income Fund (TSX:COU.UN) today announced its financial
results for the three-month period ended December 31, 2004, and for the
267-day period from the start of operations on February 16 to December
31, 2004.

Highlights for the Three Months Ended December 31, 2004:

- Revenue was $7.9 million

- Net income was $2.2 million or $0.14 per unit

- Distributable cash was $3.71 million

- Declared distributions of $3.82 million or $0.2563 per unit

Highlights for the 267-Day Period Ended December 31, 2004:

- Revenue was $21.4 million

- Net income was $7.6 million or $0.51 per unit

- Distributable cash was $11.08 million

- Declared distributions of $11.16 million or $0.7488 per unit

"Countryside completed its first fiscal period with a track record of
consistent distributions, solid operational performance and on-target
financial results," said Goran Mornhed, President and Chief Executive
Officer of Countryside U.S. Power Inc. "We have a strong foundation that
ensures cash flow sustainability and a disciplined investment approach
that supports further growth. We are committed to growing the Fund
through accretive investments and are actively reviewing opportunities
to expand our portfolio."

During the year, Countryside delivered visible results from its internal
growth strategy in its utility infrastructure investment, securing a
major new customer and undertaking an efficiency improvement program at
our district energy systems. These initiatives are already generating
accretive cash flow and are expected to result in additional cash flow
for the Fund of between $300,000 and $500,000 annually.

Financial results cover the period from Countryside's establishment on
February 16, 2004, but reflect the fact that operations began with the
launch of the publicly traded units on April 8, 2004.

Revenue from Countryside's district energy systems was $4.8 million for
the three-month period and $11.7 million for the 267-day period, both of
which were slightly higher than management's expectations due to
increased sales and higher energy prices. Interest income on the loan
receivable from U.S. Energy Biogas Corp. (USEB) was $2.9 million for the
three-month period and $8.6 million for the 267-day period, both of
which were in line with management's expectations. Revenue from
Countryside's convertible royalty interest in USEB was $410,000 for the
267-day period.

With respect to its U.S.-based investments, Countryside's financial
results generally have not been affected by the strengthening of the
Canadian dollar relative to the U.S. dollar or the rise in U.S. interest
rates during the past year. The USEB loan has a fixed coupon and is
denominated in Canadian dollars so all revenues come in the form of
Canadian dollars. Further, the interest rate on Countryside's
outstanding bank debt is fixed under a three-year hedging arrangement
with Toronto Dominion Bank.

Conference Call and Webcast

Management will host a conference call at 10 a.m. (ET) on Wednesday,
March 23, 2005 to discuss the results. Please call 416-640-4127 or
1-800-814-4890 to access the call.

The call will be webcast live and archived on the Countryside web site
at www.countrysidepowerfund.com.

Countryside's financial statements for the period and management's
discussion and analysis are available at www.countrysidepowerfund.com.

Distributable cash does not have any standardized meaning prescribed by
GAAP and is therefore unlikely to be comparable to similar measures
presented by other issuers. Since the Fund and its subsidiaries
distribute substantially all of their available cash on an on-going
basis, management believes that distributable cash is an important
measure in evaluating the performance of the Fund and determining
whether to invest in units of the Fund. For a reconciliation of net
income to distributable cash please see the Fund's MD&A for the period
ended December 31, 2004.

The Fund owns indirect investments in 22 renewable power and energy
projects and two district energy systems. The renewable power and energy
projects, located in the United States, currently have approximately 51
megawatts of electric generation capacity and sold approximately 700,000
MMBtus of boiler fuel in 2003. The district energy systems are located
in Charlottetown, Prince Edward Island and London, Ontario, and together
have approximately 122 megawatts of thermal and electric generation
capacity. The Fund's indirect investments consist of loans to, and a
convertible royalty interest in, U.S. Energy Biogas Corp. and the
ownership of the district energy systems.

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 prospectus filed with the Canadian
securities regulatory authorities. 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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