Mr. Ian Robertson reports

ALGONQUIN POWER & UTILITIES CORP. ANNOUNCES $105 MILLION INVESTMENT BY EMERA

Algonquin Power & Utilities Corp. (APUC) is finalizing arrangements with Emera Inc. for a treasury subscription of subscription receipts convertible into 17.43 million APUC common shares for total proceeds of approximately $105-million. The subscription receipts will be issued in two tranches, with delivery of the shares conditional on and planned to occur simultaneously with the closing of certain previously announced transactions.

One tranche of subscription receipts will be used to partially finance the previously announced acquisition by APUC's power generation subsidiary of a 51-per-cent interest in a 480-megawatt U.S. wind power portfolio. These subscription receipts will be convertible into 10,456,000 shares at a purchase price of $5.74 for proceeds of $60.0-million, conditional on the closing of the acquisition.

The other tranche of subscription receipts will be used to partially finance the previously announced acquisition by APUC's regulated utility subsidiary of certain gas distribution assets in the mid-west United States. These subscription receipts will be convertible into 6,977,000 shares at a purchase price of $6.45 for proceeds of $45.0-million, conditional on the closing of the acquisition.

APUC and Emera have also agreed to promptly convert the 12 million subscription receipts that were issued to Emera in December, 2010. APUC will receive $60-million in proceeds from the conversion, and will use the proceeds to partially finance the acquisition of electricity and natural gas distribution utilities in New Hampshire that are expected to close in the second quarter of 2012.

"We believe the subscription receipts are a very efficient way for APUC to raise capital to fund our previously announced acquisitions," commented APUC chief executive officer Ian Robertson. "The issuance of these additional subscription receipts further strengthens our relationship with Emera as we look to complete our growth initiatives for 2012."

"We are pleased to continue to grow our relationship with Algonquin through these additional investments," commented Emera chief executive officer Chris Huskilson. "Algonquin's proven strategy of investing in renewable energy and regulated utilities continues to contribute to Emera's holdings in renewable energy in North America."

Both tranches of subscription receipts are subject to the applicable regulatory approvals.

We seek Safe Harbor.