Northland Power Income Fund Completes Acquisition

TORONTO, ONTARIO--(CCNMatthews - April 25, 2006) -

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Northland Power Income Fund (TSX:NPI.UN) (TSX:NPI.DB) ("Northland Power" or the "Fund") announced today completion of its previously announced acquisition of two operating wind farms in Germany with a total capacity of 21.5 megawatts ("MW"). The approximately Euro 16 million (CAD $23 million) acquisition was financed with cash on hand and the Fund's acquisition line of credit.

As previously reported, the 7.2 MW Kavelstorf wind farm is located in northern Germany near Rostock and has 6 Nordex wind turbines. The 14.3 MW Eckolstadt farm has 11 wind turbines supplied by Bonus (a member of the Siemens group) and is located near Weimar in central Germany. The Nordex and Bonus turbines have proven track records and have been in operation at Kavelstorf for 5 years and at Eckolstadt for 6 years. The wind turbines are maintained by affiliates of the turbine manufacturers under contracts. The Fund has acquired the projects from U.S.-based investors, and is retaining the existing internal management and control structures. Management and day-to-day operations will continue to be provided by enXco GmbH, a German entity with considerable wind power experience, which is affiliated with Electricite de France, one of the largest power utilities in the world. Oversight of the investment will be provided by Northland Power Income Fund Management Inc., the Manager of the Fund.

Also as reported on April 13, 2006, the two projects are projected to supply 33,800 megawatthours of electricity to regional power utilities and receive a fixed tariff for all energy delivered of Euro 9.1 cents/kWh (about CAD 13 cents) for a term of 20 years under the provisions of German renewable energy legislation. The two German wind farms are expected to represent about 4% of the Fund's future distributable cash from its current portfolio and will further diversify the cash flow and asset base of the Fund. The Manager of the Fund anticipates that this acquisition will be accretive to the Fund's distributable cash.

The Fund has entered into forward exchange contracts to fully hedge its expected Euro denominated receipts and investment through to April 2011.

Northland Power Income Fund, excluding this acquisition, indirectly owns interests in four power generating facilities: three natural gas-fired combined-cycle cogeneration power plants that efficiently and cleanly produce electricity and steam for sale, and one wind power project. Two cogeneration plants are located in Ontario: the 120 MW Iroquois Falls facility that has been wholly-owned by the Fund since its inception in 1997, and the 110 MW Kingston facility, which has been wholly-owned by the Fund since it acquired an additional 50% interest on March 23, 2006. Through its 19% equity interest in Panda Energy Corp. (PEC) and loan to a PEC subsidiary, the Fund has an interest in the 230 MW Panda-Brandywine cogeneration power plant located just outside Washington, D.C. Electricity produced from the cogeneration plants is sold under long-term power purchase agreements (PPAs) with creditworthy entities to ensure revenue stability, and long-term contracts assure the supply and price of natural gas, which is the Fund's largest cost. The 54 MW Mont Miller wind power project in the Gaspesie region of Quebec supplies electricity to Hydro-Quebec under the terms of a 21-year PPA.

The Fund's trust units and convertible debentures, which trade on the Toronto Stock Exchange under the symbols NPI.UN and NPI.DB respectively, are qualified investments for RRSPs and DPSPs under the Canadian Income Tax Act. The Fund has in place a distribution re-investment plan that allows unitholders who are residents of Canada to automatically have their monthly cash distributions reinvested in additional units. Participants do not pay any costs associated with the plan, including brokerage commissions. For further information or to join the plan, contact your financial advisor or broker.

Symbol: TSX:NPI.UN and NPI.DB

FORWARD LOOKING STATEMENTS

This news release contains certain forward-looking statements, including statements regarding expectations concerning distributable cash. Although these forward-looking statements are based upon current expectations and assumptions, they are subject to numerous risks and uncertainties, many of which are beyond the Fund's control, including those that have been disclosed in the Fund's latest annual report and annual information form. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of distributions, the Fund and unitholders will derive there from.