Ameren negotiating for acquisition of Illinois Power from Dynegy Inc.



ST. LOUIS, Dec. 8, 2003 — Ameren Corp. on Friday announced that the company is in exclusive discussions with Dynegy Inc. on the possible acquisition by Ameren of Decatur, Il.-based Illinois Power Company.

There can be no assurance that these discussions will lead to an agreement or that any such agreement would be completed.

Illinois Power is an electric and natural gas distribution and transmission utility serving 590,000 electric and 415,000 gas customers in areas contiguous to Ameren’s existing Illinois utility service territories.

Ameren, through its subsidiaries, AmerenCILCO, AmerenCIPS and AmerenUE, currently serves more than 970,000 electric and gas customers in Illinois and has approximately 3,200 employees in Illinois. Ameren has a track record of providing high-quality, reliable electric and natural gas services in Illinois, and if a transaction is consummated, would commit to bringing this same level of performance to the customers and communities served by Illinois Power.

In addition, and consistent with its past acquisitions of AmerenCILCO and AmerenCIPS, Ameren would maintain Illinois Power’s headquarters in Decatur, Ill., honor all existing labor agreements and bring long-term value to all stakeholders. Further, Ameren would not propose any special legislation to complete this acquisition.

Any transaction between the parties would be subject to satisfactory completion of Ameren’s due diligence, negotiation of final terms and structure, negotiation and execution of definitive agreements, receipt of approvals from the boards of directors of both companies and required regulatory approvals, in addition to other conditions.

Ameren does not anticipate making any further announcements until a definitive agreement is reached or the discussions are terminated.

With assets of $13.5 billion, Ameren owns a diverse mix of electric generating plants strategically located in its Midwest market with a capacity of more than 14,500 megawatts. Ameren serves 1.7 million electric customers and 500,000 natural gas customers in a 49,000 square-mile area of Missouri and Illinois.

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