Echo Energy Canada Inc.
TSX VENTURE : EEI

Echo Energy Canada Inc.

August 22, 2005 07:30 ET

Echo Energy Canada Inc. Subsidiary Echo Power Generation Inc. Enters Wind Farm Agreement

TORONTO, ONTARIO--(CCNMatthews - Aug. 22, 2005) - Echo Energy Canada Inc. ("the Company")(TSX VENTURE:EEI) is pleased to announce that it has, through its subsidiary Echo Power Generation Inc., entered into a Share Purchase Agreement with Enbridge Inc. In addition to Echo Power, both Twenty-Two Degree Energy Corp. and Leader Wind Corp. (Leader Capital Corp. is the parent company in which Echo Power has made an investment) have entered into the same agreement. This agreement enables Echo Power and Enbridge to jointly submit a total 400 MegaWatts (MW) wind power bid in response to the Ontario Government's Requests for Proposal (RFP) for renewable energy announced April 19, 2005. Enbridge, a leading North America energy delivery company, also owns and operates wind farms in Western Canada.

"We are very pleased with this partnership as they (Enbridge) have a balance sheet strong enough to ensure that all three projects can be implemented should we be the successful bidder to the RFP," stated Joseph Fuda, President of Echo Power.

If successfully awarded a Renewable II Energy Supply Contract under the Ontario Ministry of Energy's Requests for Proposal for up to 1,000 MW of renewable energy to be announced in November 2005, Enbridge will acquire ownership of Echo Power, in accordance with the terms of the RFP and the RES II Contract, in exchange for Enbridge shares. Any portion of the project that is not awarded will be spun off into a new company that will be fully owned by the existing Echo Power shareholders on a pro rata basis. Enbridge will finance, construct, own and operate the projects. The Echo Power team will continue to provide assistance and support to their new partner in the projects.

Enbridge Inc. is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids transportation system. The company also has international operations and a growing involvement in the natural gas transmission and midstream businesses. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. Enbridge employs more than 4,000 people, primarily in Canada, the U.S. and South America. Enbridge's common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the U.S. under the symbol ENB. Information about Enbridge is available on the Company's web site at www.enbridge.com.



ECHO ENERGY CANADA INC.

"Gary Conn" (signed)

Gary Conn
President, Chief Executive Officer and Director


Statements in this news release that are not historical facts, including statements about plans and expectations regarding properties, reserves, transactions and opportunities, capital resources and future financial results are forward-looking. Forward-looking statements involve risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties and risks include changing gas and commodity prices and currency exchange rates, demand for gas, lack of success of future exploration and development, competition and other factors discussed from time to time in the company's filings with the Ontario Securities Commission.

Issued Share Capital: 51,201,915 Common Shares

Neither the TSX Venture Exchange nor any securities regulatory authority has approved or disapproved of this news release.

Contact Information

  • Echo Energy Canada Inc.
    Gary Conn
    President
    (519) 455-6061 (in London, Ontario)
    or
    Echo Energy Canada Inc.
    Joseph Fuda
    Director
    (416) 360-4031 (in Toronto, Ontario)