Great Lakes Fund Reports Fourth Quarter

Great Lakes Hydro Income Fund today reported its financial and operating results for the fourth quarter and year ended December 31, 2006. The Fund provides additional information on its strategy and 2006 results in its Letter to Unitholders and Supplemental Information available at www.greatlakeshydro.com under Investor Relations/Financial Highlights.

In the fourth quarter of 2006, power generation totaled 968 gigawatthours (GWh) compared with 880 GWh a year earlier. Revenues increased to $42.0 million and income before non-cash and special items to $17.3 million. These results reflect the continued strength of the hydrological conditions in Quebec and New England.

Financial and operating results increased significantly for the full-year period. Power generation totaled 4,151 GWh compared with 3,503 GWh last year. Revenue increased by 15% to $177.1 million and income before non-cash and special items by 19% to $82.6 million. These results were driven by exceptionally strong water inflows in Quйbec throughout 2006 as well as improved hydrological conditions in our Ontario operations. They also include generation of 59 GWh from the Cedar Dam facility in Quebec that was commissioned in December 2005, and 34 GWh from the Carmichael Falls, Ontario facility that was acquired on July 1, 2006.

In 2006, the Fund's cash distributions increased to $60.1 million from $58.7 million last year. -- www.tsx.com