Dynegy president and CEO highlights self-restructuring progress

HOUSTON, June 6, 2003 — At the annual meeting of shareholders Thursday, Dynegy Inc. President and CEO Bruce A. Williamson provided an update on the company’s business direction for 2003 and beyond.

Williamson also documented Dynegy’s self-restructuring progress during the last year, including such key achievements as the company’s $1.66 billion bank refinancing, its exit from third-party marketing and trading, and the sale of its communications businesses.

“I am extremely pleased with how our employees have addressed the issues of the past and, importantly, are now focusing on the future and delivering value to our stakeholders,” said Williamson. “Today [June 5], we’re demonstrating to our stakeholders and the market that we’re not only capable of strong results – we’re achieving them.”

During the annual meeting, shareholders approved the election of 12 director nominees to serve Dynegy for the next 12 months. All of Dynegy’s current directors were elected to serve for another year except for J. Otis Winters, retired chairman of PWS Group Inc., who declined to stand for re-election as a result of his retirement from the board.

In addition, Raymond I. Wilcox, vice president of ChevronTexaco Corp. and president of ChevronTexaco Exploration & Production Company, replaces Darald W. Callahan, executive vice president of Power, Chemicals and Technology for ChevronTexaco, who stepped down from the board.

Shareholders also approved the ratification of PricewaterhouseCoopers LLP as Dynegy’s independent auditors for 2003.

In addition, two shareholder proposals – one regarding auditor conflicts and the other relating to the indexing of stock options – did not pass.

Williamson provided shareholders with an update on two key developments related to the company’s generation business segment:

* Dynegy has completed scheduled maintenance on 14 power generation units at facilities in five U.S. states, preparing the company’s 13,000-megawatt generation fleet for the summer cooling season. Included in the scheduled maintenance are six units deferred to the second quarter 2003 from the first quarter 2003. These power plants were kept on line during the first quarter 2003 to meet customer needs during colder-than-normal winter weather.

* The company has started commercial operation at the Rolling Hills Generation Project, an 838-megawatt natural gas-fired peaking facility in Vinton County, Ohio, 90 miles southeast of Columbus. Electricity generated by the power plant will be sold in the wholesale electricity market to investor-owned utilities, electric cooperatives and municipalities throughout the East Central Area Reliability Council region and other areas of the country during peak demand periods. The facility was completed on schedule and under budget.

The audio web cast of the meeting and presentation slides will be available on the News & Financials section of www.dynegy.com through July 15, 2003.

Dynegy Inc. (NYSE:DYN – News) provides electricity, natural gas, and natural gas liquids to wholesale customers in the United States and to retail customers in the state of Illinois. The company owns and operates a diverse portfolio of energy assets, including power plants totaling more than 13,000 megawatts of net generating capacity, gas processing plants that process more than 2 billion cubic feet of natural gas per day and approximately 40,000 miles of electric transmission and distribution lines.

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