Mr. Bruce Flatt reports

BROOKFIELD ASSET MANAGEMENT REPORTS NET INCOME OF $5.2 BILLION

Brookfield Asset Management Inc. has released its financial results for the quarter and year ended Dec. 31, 2014. All currency figures in this release are in United States dollars.

"We have established Brookfield as a leading global real asset manager and are well positioned to expand all our platforms in order to generate superior returns for our clients and shareholders," commented Bruce Flatt, chief executive officer of Brookfield. "We are generating solid growth in fees and strong performance from most of our operating businesses."

• Net income for 2014 totalled $5.2-billion, or $4.67 per share representing a 50-per-cent increase. Operational and value improvements generated a significantly higher level of fair value gains and the continued expansion of the company's asset management activities resulted in a 26-per-cent increase in fee-related earnings.
• Funds from operations (FFO) for Brookfield shareholders during 2014 were $2.2-billion, or $3.17 per share. FFO increased by 5 per cent from the 2013 results after excluding realized disposition gains and carried interests, as increases in fee-related earnings and FFO from the company's property and renewable energy businesses were offset by lower returns on financial assets and private equity investments. The 2013 results included a significantly higher level of realized dispositions gains and carried interests.
• Fee-bearing capital increased to $89-billion and represented 20-per-cent growth, year over year.
• The company committed $18-billion to real asset investments, including telecom infrastructure in Europe and property investments in India and China. More recently, the company agreed to acquire the balance of the Canary Wharf development in London with a partner.

                                FINANCIAL RESULTS 
              (In millions of dollars, except per share amounts)

                                        Three months ended              Years ended      
                                                  Dec. 31,                 Dec. 31,      
                                          2014        2013         2014        2013

Consolidated net income                 $1,699        $850       $5,209      $3,844
Per Brookfield share                      1.59        1.08         4.67        3.12
Funds from operations                      535       1,030        2,160       3,376
Per Brookfield share                      0.78        1.59         3.17        5.14

2014 operating highlights

The company expanded its asset management franchise and its flagship listed partnerships.

Fee-bearing capital was $89-billion at year-end, an increase of 20 per cent from the prior year. The company increased both the quantity and quality of fee-bearing capital, as annualized base fees increased to $675-million, up 27 per cent year over year. The company added $4-billion of assets under management in its public markets asset business through both market appreciation and net inflows to funds that invest in property and infrastructure securities. A leading sovereign wealth fund invested $1.8-billion in the company's listed property entity.

The company's flagship private funds have committed or invested approximately 80 per cent of their capital commitments in aggregate, and the company continues to maintain a robust pipeline of investment opportunities. The company has approximately $11-billion of private funds in marketing for a variety of strategies and expects to launch another $10-billion by the end of this year. Total assets under management were $204-billion at the end of the year.

The company announced or completed acquisitions and capital expansions that will deploy over $18-billion of capital on behalf of clients and Brookfield shareholders.

The company expanded its property business by acquiring the 50 per cent of its office property portfolio that it did not already own. The company also acquired commercial properties in India and China and a triple net lease portfolio of auto dealerships. Subsequent to year-end, the company acquired a controlling interest in Canary Wharf, Europe's leading business centre, in partnership with a sovereign wealth fund.

The company's renewable energy business completed a number of major acquisitions, including an Irish wind farm portfolio with a significant development pipeline, as well as North and South American hydroelectric, wind and biomass facilities. The company's infrastructure group acquired a Brazilian rail network and committed to acquire a 50-per-cent interest in a portfolio of 6,700 European telecom towers.

Acquisitions within the company's private equity business included building North America's leading coal bed methane producer through a series of transactions and the company continued investing in the restructuring of a leading Texas utility company.

The company increased cash flow and created value with growth initiatives and operational improvements in its major businesses.

The company recorded $2.2-billion of FFO. Fee-related earnings increased by $78-million or 26 per cent over the previous year. FFO growth in the company's property, renewable energy and residential businesses was offset by lower pricing in certain industrial private equity companies and lower portfolio investment gains.

The company's asset management business generated fee revenues of $206-million in the quarter leading to quarterly fee-related earnings of $103-million. For the year, asset management fee revenue was $763-million, a 24-per-cent increase over $617-million in the previous year. In 2013, the company also crystallized significant carried interests from its clients' shopping mall investment.

The company's property group recorded a 60-per-cent increase in FFO in 2014 compared with the previous year, as a result of increased ownership of the company's office portfolio, opportunistic investments, and increases in net rents compared with expiring leases. The company recycled capital by selling mature properties at attractive valuations, including the $305-million disposition of an industrial portfolio in Mexico and the sale of office buildings in Denver, Houston, Sydney, Toronto and London.

In its renewable energy business, the company recorded $313-million of FFO. The size of the portfolio increased and the company experienced strong energy prices early in the year, while existing generation was below average levels. The company expanded this platform by commissioning $430-million of new hydroelectric and wind facilities on time and on budget in Canada and Ireland, and integrating 1,000 megawatts of newly acquired generation capacity into its network. The business has solid growth prospects, with 2,000 megawatts of development projects that the company can finance with internally generated cash.

The company's infrastructure group recorded FFO that was 11 per cent higher per unit on a comparable or same-store basis versus last year, reflecting organic growth initiatives. During the year, the company invested in the expansion of its utility, district energy and transport businesses. The company expects to recycle up to $1-billion by selling mature infrastructure assets. In its private equity business, the company monetized a long-term investment in a forest products business.

Dividend declaration

The board of directors declared a quarterly dividend of 17 cents per share (representing 68 cents per year), payable on March 31, 2015, to shareholders of record as at the close of business on Feb. 27, 2015. This represents an increase of 6 per cent over the current dividend rate. The board also declared all of the regular monthly and quarterly dividends on its preferred shares.

Information on the company's dividends can be found on its website under investors/stock and dividend information.

                     CONSOLIDATED STATEMENTS OF OPERATIONS  
               (In millions of dollars, except per share amounts)
                                                            
                                                      For the periods ended Dec. 31,
                                         Three months ended              Years ended 
                                          2014         2013       2014          2013 

Revenues                                $4,694       $5,493    $18,364       $20,093
Direct (costs)                         (3,432)      (3,672)   (13,118)      (13,928)
                                         1,262        1,821      5,246         6,165
Other income and gains                       -           44        190         1,262
Equity accounted income                    625           75      1,594           759
                                         1,887        1,940      7,030         8,186
Expenses
Interest (loss)                          (669)        (613)    (2,579)       (2,553)
Corporate (costs)                         (30)         (36)      (123)         (152)
                                         1,188        1,291      4,328         5,481
Fair value changes                       1,326           33      3,674           663
Depreciation and
amortization (loss)                      (370)        (360)    (1,470)       (1,455)
Income tax (loss)                        (445)        (114)    (1,323)         (845)
Net income                               1,699          850      5,209         3,844
Net income attributable to
Brookfield shareholders                  1,050          717      3,110         2,120
Non-controlling interests                  649          133      2,099         1,724
                                         1,699          850      5,209         3,844
Net income per share
Diluted                                   1.59         1.08       4.67          3.12
Basic                                     1.64         1.11       4.79          3.21

We seek Safe Harbor.