Brookfield Asset Management Announces Strong 20...

TORONTO, ONTARIO--(Marketwire - August 08, 2008) - Brookfield Asset
Management Inc. (TSX: BAM)(NYSE: BAM)(AEX: BAMA) -

Investors, analysts and other interested parties can access
Brookfield Asset Management's 2008 Q2 Results as well as the
Shareholders' Letter and Supplemental Financial Information on
Brookfield's web site under the Investor Centre/Financial Reports
section at www.brookfield.com.

The 2008 Q2 Results conference call can be accessed via webcast on
August 8, 2008 at 11 a.m. Eastern Time at www.brookfield.com or via
teleconference at 1-800-319-4610 toll free in North America. For
overseas calls please dial 1-604-638-5340, at approximately 10:50
a.m. Eastern Time. The teleconference taped rebroadcast can be
accessed at 1-800-319-6413 or 604-638-9010 (Password 2811).

Brookfield Asset Management Inc. (TSX: BAM)(NYSE: BAM)(AEX: BAMA)
today announced its results for the second quarter ended June 30,
2008.

Cash Flow From Operations

Cash flow from operations for the second quarter totalled $378
million ($0.62 per share). Operating cash flow in the same quarter in
2007 was $340 million ($0.55 per share) on a comparable basis, which
excludes a security disposition gain of $100 million, or $440 million
($0.72 per share) including the gain. On a comparable basis,
operating cash flow per share increased by 13% quarter-over-quarter
due to improved water levels and pricing in the company's renewable
power business and stable growth within our commercial office
business.

                                      Three months ended   Six months ended
                                                 June 30            June 30
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US$ millions (except per share
 amounts)                                    2008   2007       2008    2007
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Cash flow from operations
 Comparable basis (excluding security
  disposition gain)                       $   378 $  340    $   821 $   746
  - per share(1)                             0.62   0.55       1.34    1.22

 Total basis (including security
  disposition gain)                       $   378 $  440    $   821 $ 1,011
  - per share(1)                             0.62   0.72       1.34    1.65
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(1) Adjusted to reflect three-for-two stock split on June 1, 2007


"Our operating performance reflects the sustainable cash flows which
are generated by our high quality assets and operating platforms,"
commented Bruce Flatt, Senior Managing Partner of Brookfield Asset
Management. "We remain focused on building our operations over the
longer term."

Net Income

Net income was $110 million in the second quarter of 2008 compared
with $153 million on the same basis last year. Increases in operating
cash flows were offset by a higher level of non-cash charges,
including depreciation on assets purchased since the second quarter
of 2007. In the company's view, these assets should generate
increasing cash flows over an extended period of time due to their
high quality, long life and value appreciation potential. The company
believes that the depreciation and amortization being recorded is far
greater than the expenditures required to maintain the assets.

                                              Three months       Six months
                                             ended June 30    ended June 30
US$ millions (except per share amounts)       2008    2007    2008     2007
---------------------------------------------------------------------------
Net income
 - total                                    $  110 $   153  $  307 $    348
 - per share(1)                             $ 0.17 $  0.24  $ 0.48 $   0.55
---------------------------------------------------------------------------
(1) Adjusted to reflect three-for-two stock split on June 1, 2007


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 financial 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 November 30, 2008, to shareholders of record
as at the close of business on November 1, 2008. 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 Financial
Information for the six months ended June 30, 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.

Brookfield Asset Management Inc., focused on property, power and
infrastructure assets, has approximately $95 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 report and quarterly disclosures can be obtained
free of charge upon request.

Note: This news release contains forward-looking information within
the meaning of Canadian provincial securities laws and other
"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,
"sustainable," "should," "believe," derivations thereof, and other
expressions which 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 sustainability of
the company's cash flows, the company's ability to increase cash
flows over an extended period of time and the expenditures required
to maintain assets purchased since the second quarter of 2007.
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; market demand for an infrastructure
company, which is unknown; ability to compete for new acquisitions in
the competitive infrastructure space; availability of equity and debt
financing; strategic actions including dispositions; the ability to
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; 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
Annual Information Form 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.

CONSOLIDATED STATEMENTS OF CASH FLOW FROM OPERATIONS

(Unaudited)                                  Three months        Six months
                                            ended June 30     ended June 30
US$ millions, except per share amounts      2008     2007     2008     2007
---------------------------------------------------------------------------
Fees earned                              $   113     $ 95  $   227 $    227

Revenues less direct operating costs
 Commercial properties(1)                    427      396      879      784
 Power generation                            264      170      515      358
 Infrastructure(2)                            44      114       92      203
 Development and other properties            119      117      183      263
 Specialty funds                             119       59      223      121
Investment and other income                  148      248      435      547
---------------------------------------------------------------------------
                                           1,234    1,199    2,554    2,503
Expenses
 Interest                                    475      424    1,002      822
 Other operating costs                       148      105      313      215
 Current income taxes                         21       26       38       46
 Non-controlling interests                   212      204      380      409
---------------------------------------------------------------------------
Cash flow from operations                $   378      440  $   821 $  1,011
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Cash flow from operations per common
 share(3)
 Diluted                                 $  0.62   $ 0.72  $  1.34 $   1.65
 Diluted - excluding security
  disposition gain                       $  0.62   $ 0.55  $  1.34 $   1.22
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) Commercial properties includes $31 million (2007  $nil) of dividend
    income recognized in Q1 2008 from Canary Wharf Group which is included
    in "Investment and Other Income" in the company's consolidated financial
    statements, which are prepared in accordance with Canadian GAAP

(2) Infrastructure includes the results of the company's Chilean
    transmission operations, which are recorded on a consolidated basis in
    2007 and on an equity accounted basis in 2008

(3) Adjusted to reflect three-for-two stock split on June 1, 2007

Notes

Cash flow from operations is reconciled to net income before other items on
page 6 of this news release as follows:


(Unaudited)                                  Three months       Six months
                                            ended June 30    ended June 30
US$ millions                                2008     2007    2008     2007
--------------------------------------------------------------------------
Net income excluding other items (see
 page 6)                                  $  372 $    335  $  809 $    736
  Dividends from equity accounted
   investments(1)                              6        5      12       10
  Gain on sale of exchangeable
   debentures(1)                               -      100       -      265
--------------------------------------------------------------------------
Cash flow from operations (per above)     $  378 $    440  $  821 $  1,011
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(1) Included in "Investment and Other Income" in the Statements of Cash Flow
    from Operations


The consolidated statements of cash flow from operations above are
prepared on a basis that is consistent with management's discussion
and analysis and differ from the company's consolidated financial
statements presented in its interim report, which are prepared in
accordance with Canadian generally accepted accounting principles
("GAAP"). Management uses cash flow from operations as a key measure
to evaluate performance and to determine the underlying value of its
businesses. Readers are encouraged to consider both measures in
assessing Brookfield Asset Management's results. Cash flow from
operations is equal to net income excluding "other items" as
presented in the following consolidated statements of income and
including dividends from investments and the gain on the sale of an
exchangeable debenture investment. The exchangeable debenture gain
would have been included in income prior to the implementation of
recent accounting requirements but, as a result of transitional
provision, has been recorded in shareholders' equity.

CONSOLIDATED BALANCE SHEETS

---------------------------------------------------------------------
                                              (Unaudited)
                                                 June 30  December 31
US$ millions                                        2008         2007
---------------------------------------------------------------------
Assets
Cash and cash equivalents                      $   1,532   $    1,561
Financial assets                                   1,467        1,529
Operating assets
 Securities                                        1,639        1,646
 Loans and notes receivable                        2,258          909
 Property, plant and equipment
  Commercial properties                           21,284       21,166
  Power generation                                 5,675        5,137
  Infrastructure                                   2,996        3,046
  Development and other properties                 9,175        7,573
  Other plant and equipment                        1,041        1,050
Investments                                        1,033        1,352
Intangible assets                                  1,935        1,773
Goodwill                                           2,017        1,528
Accounts receivable and other                      7,534        7,327
---------------------------------------------------------------------
                                               $  59,586   $   55,597
---------------------------------------------------------------------
---------------------------------------------------------------------
Liabilities and Shareholders' Equity
Liabilities
 Corporate borrowings                          $   2,396   $    2,048
 Non-recourse borrowings
  Property specific mortgages                     22,152       21,644
  Other debt of subsidiaries                       8,714        7,463
 Accounts payable and other liabilities           10,576       10,055
 Intangible liabilities                            1,036        1,047
Capital securities                                 1,681        1,570
Non-controlling interests of others in assets      5,877        4,256
Preferred equity                                     870          870
Common equity                                      6,284        6,644
---------------------------------------------------------------------
                                               $  59,586   $   55,597
---------------------------------------------------------------------
---------------------------------------------------------------------


Note

Investment in Canary Wharf Group included in "Commercial Properties"
with a carried value of $182 million (2007 $182 million) is included
in "Securities" in the company's consolidated financial statements,
which are prepared in accordance with Canadian GAAP.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)                        Three months ended     Six months ended
US$ millions, except per share                 Jun 30              June 30
 amounts                                2008     2007      2008       2007
--------------------------------------------------------------------------
Total revenues                       $ 3,436  $ 2,125   $ 6,646    $ 3,966
--------------------------------------------------------------------------

Fees earned                          $   113  $    95   $   227  $     227

Revenues less direct operating costs
 Commercial properties(1)                427      396       879        784
 Power generation                        264      170       515        358
 Infrastructure(2)                        44      114        92        203
 Development and other properties        119      117       183        263
 Specialty funds                         119       59       223        121
Investment and other income              142      143       423        272
--------------------------------------------------------------------------
                                       1,228    1,094     2,542      2,228
Expenses
 Interest                                475      424     1,002        822
 Other operating costs                   148      105       313        215
 Current income taxes                     21       26        38         46
 Non-controlling interests               212      204       380        409
--------------------------------------------------------------------------
                                         372      335       809        736
Other items
 Depreciation and amortization          (328)    (267)     (642)      (490)
 Equity accounted losses from
  investments                            (15)     (29)      (28)       (68)
 Other                                   (46)      11      (109)        16
 Future income taxes                       3      (69)       21       (134)
 Non-controlling interests in the
  foregoing items                        124      172       256        288
--------------------------------------------------------------------------
Net income                           $   110  $   153   $   307  $     348
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net income per common share(3)
 Diluted                             $  0.17  $  0.24   $  0.48     $ 0.55
 Basic                               $  0.17  $  0.25   $  0.49     $ 0.57
--------------------------------------------------------------------------
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(1) Commercial properties includes $31 million (2007  $nil) of dividend
    income recognized in Q1 2008 from Canary Wharf Group which is included
    in "Investment and Other Income" in the company's consolidated financial
    statements, which are prepared in accordance with Canadian GAAP

(2) Infrastructure includes the results of the company's Chilean
    transmission operations, which are recorded on a consolidated basis in
    2007 and on an equity accounted basis in 2008

(3) Adjusted to reflect three-for-two stock split on June 1, 2007


Note
The consolidated statements of income are prepared on a basis
consistent with the company's financial statements presented in its
interim report, which are prepared in accordance with Canadian GAAP.
Contacts:
Brookfield Asset Management
Denis Couture, SVP, Investor Relations and Corporate
and International Affairs
[phone]
[phone] (FAX)
Email: [e-mail]