Mr. Michel Letellier reports

INNERGEX RENEWABLE ENERGY 2010 Q2 RESULTS

Innergex Renewable Energy Inc. has released its operating and financial results for the second quarter of 2010 and for the six-month period ending June 30, 2010.

                          OPERATING HIGHLIGHTS
         (in thousands of dollars, except per share amounts)

                                Three-      Three-        Six-        Six-
                                month       month       month       month
                               period      period      period      period
                                ended       ended       ended       ended
                              June 30,    June 30,    June 30,    June 30,
                                 2010        2009        2010        2009

Power generated (MW-hr)       369,753     247,764     527,419     411,676
Long-term average             416,853     255,336     585,788     422,265
Operating revenues            $24,824     $16,519     $38,375     $30,460
EBITDA                         18,767      13,555      29,475      24,645
Net (loss) earnings            (6,524)     13,353      (7,023)     16,372
Net (loss) earnings per
share                           (0.11)       0.31       (0.14)       0.38
Adjusted net earnings           3,803       4,722       5,480       7,177
Adjusted net earnings
($ per share -- basic)           0.06        0.11        0.11        0.17

For the second quarter of 2010, Innergex recorded operating revenues and EBITDA (earnings before interest, taxes, depreciation and amortization) higher than for the same period in 2009. This performance results from the greater number of facilities operated by Innergex in 2010 compared with 2009, following the combination of Innergex Power Income Fund with the corporation on March 29, 2010.

This increase in revenues was partially offset by lower production levels from the precombination assets of the fund. Also, the Ashlu Creek facility was shut down from Feb. 28, 2010, to April 17, 2010, to perform a tunnel inspection and the subsequent improvement work.

As Michel Letellier, president and chief executive officer of Innergex, explains: "The lower-than-anticipated power generation in the second quarter of 2010 is mainly due to unfavourable weather conditions. Based on our experience, we expect the meteorological conditions to revert back to their estimated long-term average in the future."

Adjusted net earnings

Innergex believes that adjusted net earnings represent important additional information for the reader because they provide a profitability measure that excludes certain elements that have no impact on cash on hand. Adjusted net earnings exclude unrealized foreign exchange gains/losses and unrealized gains/losses on derivative financial instruments as well as any associated future income tax. When applicable, adjusted net earnings also exclude some non-recurring items. Innergex calculates adjusted net earnings as shown in the table, "Adjusted net earnings."

                      ADJUSTED NET EARNINGS
      (in thousands  of dollars, except per share amounts)

                                Three-      Three-        Six-        Six-
                                month       month       month       month
                               period      period      period      period
                                ended       ended       ended       ended
                              June 30,    June 30,    June 30,    June 30,
                                 2010        2009        2010        2009

Net (loss) earnings           $(6,524)    $13,353     $(7,023)    $16,372
Add (deduct)
Non-cash expense related
to royalty agreement                -           -         983           -
Unrealized net loss (gain)
on derivative financial
instruments                    14,102     (11,197)     16,142     (11,771)
Unrealized foreign
exchange loss (gain)               44        (233)          2        (136)
Associated future income
taxes                          (3,819)      2,799      (4,624)      2,712
                              -------     -------     -------     -------
Adjusted net earnings         $ 3,803     $ 4,722     $ 5,480     $ 7,177
                              =======     =======     =======     =======
Adjusted net earnings
($ per share -- basic)           0.06        0.11        0.11        0.17

Despite an increase in revenues and EBITDA for both the second quarter and the six-month period ending June 30, 2010, the adjusted net earnings decreased when compared with 2009. This variation is mainly attributable to the increase in interest on long-term debt and convertible debentures, depreciation and amortization, general and administrative expenses, as well as expenses for prospective projects.

Projects under construction

Construction starts at Montagne-Sache and Gros-Morne, phase I and II

"During the second quarter of 2010, we started the construction work for three wind farms in Quebec and we expect, as planned, to increase our production capacity by December, 2011, when the 58.5-megawatt Montagne-Sache and the 100.5-megawatt Gros-Morne -- phase I projects are completed," notes Michel Letellier. Also under construction, the 111-megawatt Gros-Morne -- phase II project is expected to be completed by December, 2012. Activities are currently focused on tree clearing, road building and site preparation for the substations and mount pads.

During the second quarter of 2010, the corporation received a term sheet offer from a syndicate of lenders to secure the long-term debt financing for these projects. Given the disbursement schedule of these projects, no drawings under the debt facilities will be required before mid-2011. As such, and given the improving market conditions for projects financing, Innergex decided to wait until late 2010 before entering into a credit agreement with the syndicate of lenders.

Projects under development

Upper Lillooet, Boulder Creek and North Creek

On June 3, 2010, the British Columbia government's Clean Energy Act was confirmed by the B.C. Legislature, resulting in the approval of the three power purchase agreements for Upper Lillooet (49.3 megawatts, net), Boulder Creek (15.3 megawatts, net) and North Creek (10.7 megawatts, net) hydroelectric projects, submitted under the 2008 B.C. Hydro Clean Power Call. The PPAs allow the corporation to enter the development phase. Innergex expects Boulder Creek to start commercial operation in 2015 and North Creek and Upper Lillooet to start commercial operation in 2016.

Adjusted cash flows from operating activities and distributions

For the second quarter of, 2010, Innergex generated $13.8-million in adjusted cash flows from operating activities ($9.2-million in 2009) and declared cash distributions totalling $8.8-million ($7.4-million in 2009) or 15 cents per share (17 cents in 2009). For the six-month period ended June 30, 2010, Innergex generated $22.3-million in adjusted cash flows from operating activities ($17.2-million in 2009) and declared cash distributions totalling $16.1-million ($14.7-million in 2009) or 32 cents per share (34 cents in 2009).

Dividend declaration

Innergex intends to pay a dividend of 58 cents per share per year, payable on a quarterly basis. The third quarter dividend of 14.5 cents per share will be paid on Oct. 15, 2010, with a record date of Sept. 30, 2010.

Subsequent events

Hydro-Quebec Distribution 250-megwatt Community Wind RFP

On July 6, 2010, Innergex submitted eight wind projects to the Hydro-Quebec Distribution 250-megawatt Community Wind Request for Proposals, in partnership with communities. PPA awards are expected before the end of 2010. The projects each have an installed capacity of 24.6 megawatts, with proposed in-service dates beginning December, 2013.

B.C. Hydro SOP

On July 15, 2010, B.C. Hydro announced its recommendations for updates and changes to its standard offer program. Among other things, B.C. Hydro is recommending increases in pricing and in permitted capacity (from 9.9 megawatts to 15.0 megawatts). Innergex is currently evaluating the impact of this announcement, as some of its prospective projects could be submitted under this program.