Brookfield Asset Management Announces Strong Operating Cash Flow of $1.4 Billion for 2008

TORONTO, February 13, 2009 – Brookfield Asset Management Inc. (TSX/NYSE: BAM; EURONEXT: BAMA) today announced its results for the year ended December 31, 2008.

Cash Flow From Operations
Cash flow from operations on a comparable basis (i.e., excluding major disposition gains) for the full year was $1.2 billion ($1.98 per share), compared with $1.1 billion ($1.79 per share) reported in 2007, representing an increase of 11% on a per share basis. Cash flow from operations for the fourth quarter on the same basis increased to $241 million ($0.40 per share) from $163 million ($0.25 per share), representing a 48% increase.

Total cash flow from operations, including major disposition gains, was $1.4 billion ($2.33 per share), compared with $1.9 billion ($3.11 per share) on the same basis in 2007, and for the fourth quarter totalled $247 million ($0.41 per share) compared with $575 million ($0.94 per share).

“Our renewable power and office property businesses both produced strong operating cash flows during the quarter, which led to the overall improvement in operating cash flows.  The stable revenue profiles of these businesses should provide us with a strong earnings base for 2009 and beyond,” commented Bruce Flatt, Senior Managing Partner of Brookfield Asset Management.  “In addition, we continue to bolster our capitalization and liquidity which, at over $3 billion of core liquidity, remains at historically high levels.”

Net Income
Net income for 2008 was $649 million ($1.02 per share) compared to $787 million ($1.24 per share) in 2007. Excluding major disposition gains, net income in 2008 was $525 million ($0.81 per share) compared with $349 million ($0.51 per share) on the same basis last year.

Net income in 2007 reflected a large number of disposition gains. In addition, the 2008 results reflect increases in a higher level of non-cash charges, including depreciation on assets purchased in 2007, offset in part by a non-cash tax recovery arising from an increase in the value of our tax assets.

This news release and accompanying financial statements make reference to cash flow from operations on a total and per share basis. Cash flow from operations is defined as net income excluding depreciation and amortization, interests of non-controlling shareholders, future income taxes and other items as described as such in the consolidated statements of income, and including dividends and disposition gains that are not otherwise included in net income. Brookfield uses cash flow from operations to assess its operating results and the value of its business and believes that many of its shareholders and analysts also find this measure of value to them. The company provides the components of cash flow from operations and a full reconciliation between cash flow from operations and net income with the supplemental information accompanying this news release. Cash flow from operations is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.

Dividend Declaration
The Board of Directors declared a dividend of US$0.13 per Class A Common Share, payable on May 31, 2009, to shareholders of record as at the close of business on May 1, 2009. The Board also declared all of the regular monthly and quarterly dividends on its preferred shares.

Information on Brookfield Asset Management’s declared share dividends can be found on the company’s web site under Investor Centre/Stock and Dividend Information.

Additional Information
The Letter to Shareholders and the company’s Supplemental Information for the year ended December 31, 2008 contain 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.

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Brookfield Asset Management Inc., focused on property, power and infrastructure assets, has approximately $80 billion of assets under management and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and on NYSE Euronext under the symbol BAMA. For more information, please visit our web site at www.brookfield.com.

Please note that Brookfield’s audited annual and unaudited quarterly reports have been filed on Edgar and Sedar and can also be found in the investor section of our web site at www.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

For more information, please visit our web site at www.brookfield.com or contact:

Denis Couture
SVP, Investor Relations and Corporate and International Affairs
Brookfield Asset Management
Tel.: (416) 956-5189
Fax.: (416) 363-2856
dcouture@brookfield.com

Note: This news release contains forward-looking information withinthe meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations.  The words “continue”, “payable”, “expect”, “intend”, derivations thereof and other expressions, including conditional verbs such as “should”, are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking statements.  Forward-looking statements in this news release include statements in regards to the strength of our future earnings base and the bolstering of our capitalization and liquidity levels, procedures and assumptions to be used in preparing our pro forma opening balance sheet for our adoption of IFRS and date of our first IFRS reporting period.  Although Brookfield Asset Management believes that its anticipated future results, performance or achievements expressed or implied of such assets by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include: economic and financial conditions in the countries in which we do business; the behaviour of financial markets, including fluctuations in interest and exchange rates; availability of equity and debt financing; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; the company’s continued ability to attract institutional partners to its Specialty Investment Funds; adverse hydrology conditions; regulatory and political factors within the countries in which the company operates; acts of God, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts; changes in accounting policies to be adopted under IFRS and other risks and factors detailed from time to time in the company’s form 40-F filed with the Securities and Exchange Commission as well as other documents filed by the company with the securities regulators in Canada and the United States including the company’s most recent Management’s Discussion and Analysis of Financial Results under the heading “Business Environment and Risks.”

We caution that the foregoing factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Brookfield Asset Management, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, as a result of new information, future events or otherwise.