The league continued to expand to new eastern markets, with teams relocating to Maine and Prince Edward Island.
The Lewiston Maineiacs became the league's second American-based team in history after the Plattsburgh Pioneers, and first to survive a full season.
Rocket also became the first major junior hockey team based on Prince Edward Island.
Rookie Sidney Crosby led the league in scoring as a 16-year-old, and won the Michel Brière Memorial Trophy as the MVP of the regular season.
The Gatineau Olympiques finished first overall in the regular season winning their fourth Jean Rougeau Trophy, and also won their sixth President's Cup, defeating the Moncton Wildcats in the finals.