Innergex Power Income Fund closes the transaction with TD Capital Group Limited

LONGUEUIL, QC, May 30 /CNW Telbec/ - Innergex Power Income Fund (TSX: IEF.UN) (the "Fund") announces the completion yesterday of the acquisition of IHI Hydro Inc. ("IHI"), a subsidiary of TD Capital Group Limited. This transaction was made public on April 21, 2008.

The transaction allows the Fund to increase its net installed capacity by more than 6%, from 197 MW to 210 MW. The acquisition of this minority interest gives the Fund full ownership of the Saint-Paulin, Chaudière and of the three Portneuf hydroelectric facilities, all of which sell their electricity pursuant to long-term power purchase agreements with Hydro-Québec. The Fund financed the $13.5 million transaction through bank debt.

"We are pleased to have completed the transaction which was expected to occur by the end of second quarter 2008. We are now sole owners of our hydroelectric facilities. This transaction will contribute to streamline our corporate structure and will create a certain administrative synergy", declared Michel Letellier, President and CEO of Innergex Renewable Energy Inc., the Fund's Manager. "In addition, the cash flow allocated to IHI has a positive growth profile, which will result in an increase in the Fund's distributable cash over the coming years. We have always managed the Fund in a long-term perspective, and this acquisition is perfectly in line with that philosophy."

"As mentioned when the transaction was announced, the Fund once again makes an acquisition that will benefit its unitholders. In the past five years, the Fund has more than tripled its installed capacity and increased its cash distributions by 8%, from $0.925 to $1.00 on an annualized basis", stated Jean La Couture, Chairman of the Board of Trustees, Innergex Power Trust. "This acquisition is financially quite attractive and allows the Fund to take full control of very high-quality hydroelectric facilities."

PROFILE

Innergex Power Income Fund is an open-ended income trust that indirectly owns interests in 10 hydroelectric power-generating facilities and two wind farms. The Fund's total installed capacity is 339.9 MW (net interest of 210 MW). Approximately 27% of the total annual production comes from wind energy. The Fund's units are traded on the Toronto Stock Exchange under the symbol IEF.UN. The hydroelectric facilities and wind farms are managed by Innergex Renewable Energy Inc. under long-term agreements with the Fund.

FORWARD-LOOKING STATEMENTS

Investors should take note that some statements in this press release are forward-looking and may not give full weight to all potential risks and uncertainties. Forward-looking statements are, by their nature, subject to risks and uncertainties, and actual results, actions or events could materially differ from those set forth in the forward-looking statements. All forward-looking statements are only valid as of the date they were made. The Fund does not undertake to update any forward-looking statements.

Contacts

Mr. Michel Letellier
M.B.A.
President and CEO
Innergex Renewable Energy Inc.
as Manager
(450) 928-2550
info@innergex.com

www.innergex.com