Algonquin Power Management Inc. has filed a preliminary prospectus with the Ontario Securities Commission in connection with the initial public offering for the newly created Algonquin Power Venture Fund Inc., a labour-sponsered investment fund.

The objective of the fund is to provide a predictable yield and long term capital appreciation through investment in the independent electric generation, distribution and infrastructure sector. The fund will invest in a diverse group of small and medium-sized eligible Canadian businesses with an emphasis on debt investments in independent power projects demonstrating a predictable risk profile and the clear ability to provide steady near-term cash flow.

In addition to the newly launched APVF, APMI provides management services for the Algonquin Power Income Fund (“APIF”), an open-ended investment trust established in 1997 which owns a diversified portfolio of hydroelectric, co-generating, alternative fuels and infrastructure assets representing approximately $700MM in investment (APIF trust units are traded on the Toronto Stock Exchange under the symbol APF.UN).

In contrast to the Algonquin Power Income Fund, an open-ended investment trust which generally invests only in completed power projects, the new LSIF will be focused on earlier stage power development investment opportunities says Jeff Norman of Algonquin Power Venture Fund Inc.

www.algonquinpower.com