Great Lakes Hydro Income Fund Reports Third Quarter Results - Significant increase in power generation and revenues

Total power generation was significantly higher in both the third quarter and the year to date compared with the same periods in 2005. In the quarter, total power generation increased to 923 GWh from 712 GWh last year, due primarily to heavy rainfalls in Quebec. Revenues increased to $37.7 million and income before non-cash items was $14.1 million. These results include a full quarter’s contribution from the Carmichael Falls facility in Ontario that was acquired by the Fund in July 2006.

For the comparable nine-month periods, total power generation increased to 3,183 GWh, revenue to $135.1 million and income before non-cash items to $65.3 million, reflecting higher hydrology in all regions. At quarter end, overall reservoir levels were in line with the long-term average.

“Our excellent results in the third quarter and the year to date clearly reflect the soundness of our strategy to build long-term, sustainable revenues and unitholder value,” said Richard Legault, President and Chief Executive Officer. “The geographic diversification of our watersheds, combined with our disciplined approach to managing the Fund’s business, has enabled us to deliver a strong and stable return on investment to our unitholders.”

During the third quarter, a total of $7.3 million was invested in sustaining capital expenditures and $2.0 million in major maintenance to extend the life of the Fund’s power generating assets as well as to enhance and optimize annual generation. Capital projects include the re-powering of three generating units at the High Falls facility in Quebec; the overhaul of a generating unit at the Lois facility in British Columbia; the overhaul of the gatehouse and four generating units at the Millinocket facility in Maine; and replacement of the penstock at the Riverside facility in New Hampshire. For 2006, sustaining capital expenditures are expected to total $31.8 million, down $5.6 million from last quarter due to the timing of projects.

At September 30, 2006, the Fund had a strong balance sheet and healthy financial ratios. The cash balance was $19.2 million, in addition to almost $26 million of availability on its credit facilities and almost $21 million available on its hydrology reserve facilities with Brookfield Power.

Subsequent to quarter end, on November 3, 2006, the Fund completed a non-revolving term loan facility of $32.0 million with a leading Canadian institution. The facility, which is due in November 2011 and bears interest at 4.78%, will be fully repaid with interest and principal payable quarterly commencing in February 2007. The term loan is secured by the Carmichael Falls assets acquired in July 2006. The proceeds of the financing will be used to support the Fund’s capital expenditure plan and potential acquisition opportunities.

On October 31, 2006, Canada’s Minister of Finance announced proposed changes to the taxation of publicly-traded flow-through entities; such changes are designed to level the playing field between trusts and corporations. Under this proposal, a tax similar to that on corporations would be applied to income trusts, and the taxable portion of distributions to unitholders would be considered as dividends. The changes as proposed will not apply to Great Lakes Hydro Income Fund in taxation years that end before 2011. Further information on the impact of this proposed legislation can be found in our Supplemental Information posted on our website. The Fund recommends that investors consult with their financial advisors on the tax implications of this proposed legislation with respect to their investment in Great Lakes Hydro Income Fund.

A more complete discussion of our results of operations and our financial situation for the third quarter and nine months ended September 30, 2006 is provided in our quarterly report and related supplemental information available on our website (www.greatlakeshydro.com).

Distributions

The schedule below sets out cash distribution history for the last six months:

Forward-Looking Statements

This news release may contain forward-looking statements concerning the Great Lakes Hydro Income Fund (“Fund”) business and operations. Forward looking statements can be identified by the use of words, such as “believe”, “well positioned”, “long-term”, “grow”, “expand”, “enhance” or variations of such words and phrases or state that certain actions, events or results “will” be taken, occur or be achieved. Forward looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results or performance to be materially different from any future results or performance expressed or implied by the forward statements. More details relating to risk factors can be found in the Fund’s annual information form in the section entitled Risk Factors.

Examples of such statements include, but are not limited to factors relating to production and the business, financial position, operations and prospects for the Fund. They include (1) the Fund’s level of generation; (2) the Fund’s cost of production; (3) interest rates as they bear on the Fund’s indebtedness; (4) planned capital expenditures; (5) the impact of changes in the Canadian dollar – U.S. dollar on the Fund’s costs and results of operations; (6) the negotiation of collective agreements with its unionized employees; (7) business and economic conditions; (8) the legislation governing air emissions, discharges into water, waste, hazardous materials and workers’ health and safety as well as the impact of future legislation and regulations on expenses, capital expenditures and restrictions on operations; (9) regulatory investigations, claims, lawsuits and other proceedings; and (10) reliance on the guaranteed price for electricity by Brookfield Power Inc. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied in the forward-looking statements contained herein, and as a such, you are cautioned not to place undue reliance on these forward-looking statements.

These forward-looking statements represent our views as of the date of this news release. While the Fund anticipates that subsequent events and developments may cause the Fund’s views to change, the Fund disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Fund’s views as of any date subsequent to the date of this news release.

Q3 Conference Call

A conference call for investors and media to review the third quarter results for 2006 will be held on Tuesday, November 7, 2006 at 10:00 a.m. (EST). To participate in the conference call, please dial 416-644-3423 or 1-800-814-4890 toll free in North America, at 9:50 a.m. (ET). For those unable to participate in the conference call, a taped rebroadcast will also be available until midnight November 9, 2006. To access this rebroadcast, please call 1-877-289-8525 toll free in North America, and enter the passcode 21206156#.

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About Great Lakes Hydro Income Fund

Great Lakes Hydro Income Fund is one of the largest power income funds in North America with 1,015 megawatts of power generating capacity and an average annual production of 3,874 gigawatt hours.

Great Lakes Hydro Income Fund produces electricity exclusively from environmentally friendly hydroelectric resources. The Fund owns, operates and manages 26 high quality hydroelectric generating stations located on eight river systems in four distinct geographic regions across North America: Quebec, Ontario, British Columbia and New England.

Brookfield Power, which comprises the majority of the power operations of Brookfield Asset Management, owns 50.1% of the Fund’s outstanding units. Great Lakes Hydro Income Fund units are traded on the Toronto Stock Exchange under the symbol GLH.UN.