Brookfield Asset Management Reports Third Quarter Net Income of US$736 Million

Business Wire, Nov 3, 2005

TORONTO -- Brookfield Asset Management Inc. (currently Brascan Corporation) (TSX:BAM)(NYSE:BAM)

Investors, analysts and other interested parties can access Brookfield Asset Management's 2005 Third Quarter Results as well as the Shareholders' Letter and Supplemental Financial Information on Brascan's web site under the Investor Centre/Financial Reports and Investor Presentations section at www.brascancorp.com.

The 2005 Third Quarter Results conference call can be accessed via webcast on November 3, 2005 at 3:00 p.m. EST at www.brascancorp.com or via teleconference at 1-800-240-5124, toll free in North America. For overseas calls please dial 507-726-3566, at approximately 2:50 p.m. EST. The teleconference taped rebroadcast can be accessed at 1-800-807-5189.

CASH FLOW FROM OPERATIONS PER SHARE INCREASES TO $286 MILLION

Brookfield Asset Management Inc. (currently Brascan Corporation) (TSX:BAM)(NYSE:BAM) today announced operating results for the third quarter ended September 30, 2005. Net income totalled $736 million ($2.73 per share) compared with $133 million ($0.49 per share) in the same period last year, and includes a gain on the sale of our remaining investment in Falconbridge of $636 million after tax.

Operating cash flow, which excludes a gain on the sale of our Falconbridge shares, for the three months ended September 30, 2005 totalled $286 million ($1.04 per share) compared with $188 million ($0.70 per share) last year.

The following table presents the results on a total and per share basis.

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                           Three months ended      Nine months ended
                                     Sept. 30               Sept. 30
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US$ millions
(except per share amounts)     2005      2004        2005       2004
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Net income                 $    736  $    133   $   1,511   $    468

    -    per share         $   2.73  $   0.49   $    5.58   $   1.73

Cash flow from operations  $    286  $    188   $     656   $    493

    -    per share         $   1.04  $   0.70   $    2.37   $   1.83
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Bruce Flatt, Chief Executive Officer of Brookfield Asset Management commented: "Our core operations in property, power and infrastructure assets performed in line with expectations and we are well positioned to generate additional growth in operating cash flows for the balance of the year. The disposition of our investment in Falconbridge significantly increased our liquidity and represents the culmination of our plan to monetize our resource investments."

Dividend Declaration

On November 2, 2005, the Board of Directors declared a regular dividend of US$0.15 per Class A Share, payable on February 28, 2006, to shareholders of record as at the close of business on February 1, 2006.

Information on Brookfield Asset Management's common and preferred share dividends can be found on the company's web site under Investor Centre/Stock Information.

Corporate Activities

A special meeting of shareholders will be held on November 10, 2005 to consider a resolution to change the name of the company to Brookfield Asset Management Inc. This will enable the company to operate under one unified name across our operations. In addition, the currently outstanding offer to repurchase up to $500 million of common shares at $41.00 per share will expire on November 9, 2005.

Additional Information

The Letter to Shareholders and the company's Supplemental Financial Information for the nine months ended September 30, 2005 contains further information on the company's strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available on the company's web site.

Brookfield Asset Management Inc. (currently Brascan Corporation) is a specialist asset manager. Focused on property, power and infrastructure assets, the company has approximately $40 billion of assets under management. The company is co-listed on the New York and Toronto Stock Exchanges. For more information, please visit our web site at www.brascancorp.com.

CONSOLIDATED STATEMENT OF INCOME

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(Unaudited)                  Three months ended     Nine months ended
                                       Sept. 30              Sept. 30
US$ millions, except per
 share amounts                  2005     2004(a)      2005    2004(a)
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Total revenues               $ 1,368      $ 994    $ 3,516   $ 2,600
                            -----------------------------------------
Net operating income
Property                         277        241        769       677
Power generation                  98         68        361       213
Funds management                  57         46        225       165
Investment income                 39         17         72        38
Gains and other                   41         67         67       148
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                                 512        439      1,494     1,241
Expenses
Interest expense                 218        154        652       454
Current income taxes              28         16         74        40
Other operating costs             21         22         68        53
Minority share of net
 income before the following      74         74        235       248
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                                 171        173        465       446
Other items
Equity accounted income
 from investments                 34         79        210       270
Gains on disposition of
 Falconbridge                    785          -      1,350         -
Depreciation and
 amortization                  (102)       (60)      (271)     (172)
Future income taxes and
 other provisions              (180)      (107)      (329)     (193)
Minority share of the
 foregoing items                  28         48         86       117
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Net income                     $ 736      $ 133    $ 1,511     $ 468
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Net income per common share
  Diluted                     $ 2.73     $ 0.49     $ 5.58    $ 1.73
  Basic                       $ 2.80     $ 0.50     $ 5.72    $ 1.75
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CONSOLIDATED STATEMENT OF CASH FLOW FROM OPERATIONS

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(Unaudited)               Three months ended       Nine months ended
                                    Sept. 30                Sept. 30
US$ millions                 2005     2004(a)       2005      2004(a)
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Income before
 non-cash items(1)          $ 171      $ 173       $ 465       $ 446
Dividend from Canary Wharf    110          -         110           -
Dividends from Falconbridge     -         11          24          33
Dividends from Norbord          5          4          57          14
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Cash flow from operations   $ 286      $ 188       $ 656       $ 493
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(1) Net operating income less expenses
(a) See accompanying notes on following page


CONSOLIDATED BALANCE SHEET

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                                 (Unaudited)  (Unaudited)
                               September 30      June 30  December 31
US$ millions                           2005         2005      2004(2)
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Assets
Operating assets
  Property                         $ 10,334     $ 10,217      $ 9,289
  Power generation                    3,636        3,520        3,048
  Funds management                    4,926        5,538        4,719
                                  -----------------------------------
                                     18,896       19,275       17,056
Cash and cash equivalents             1,244          674          404
Securities                            2,391        1,731          996
Accounts receivable and other         3,683        3,199        1,551
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                                   $ 26,214     $ 24,879     $ 20,007
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Liabilities and Shareholders' Equity
Liabilities
  Corporate borrowings              $ 1,685      $ 1,832      $ 1,675
  Non-recourse borrowings
   Property specific mortgages        8,112        7,865        6,045
   Other debt of subsidiaries         2,481        2,544        2,373
  Accounts payable and other
   liabilities                        5,086        4,576        2,719
Capital securities(2)                 1,598        1,513        1,548
Minority interests of others
 in assets                            2,076        2,087        1,780
Preferred equity                        590          590          590
Common equity                         4,586        3,872        3,277
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                                   $ 26,214     $ 24,879     $ 20,007
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