Energy Investors Funds acquires additional interest in MASSPOWER

BOSTON, Mass., Oct. 21, 2004 — Energy Investors Funds, an established private equity fund manager that invests in the energy and electric power sector, announced that the United States Power Fund, L.P. has acquired a 12.5 percent general partner interest in MASSPOWER from El Paso Corporation.

MASSPOWER is a 270 megawatt (gross) gas-fired cogeneration plant located in Springfield, MA. The facility has been in operation since 1993 and has four long term power purchase agreements with Boston Edison, Commonwealth Electric Company, and Massachusetts Municipal Wholesale Electric Company, with the remaining energy sold on the New England spot market. MASSPOWER also has long-term fuel supply agreements in place with pricing indexed to the power purchase agreement energy pricing.

In 1997, Energy Investors Funds’ Project Finance Fund III, L.P. acquired a 17.5% interest in MASSPOWER.

“We welcome this opportunity to increase our investment in an asset that is well managed and has a solid operational history,” said Jonathan January, Energy Investors Fund’s partner who led the deal team along with Rick Carlson. “This acquisition fits perfectly with EIF’s established mandate to invest in projects that offer current cash flow supported by long-term, indexed fuel agreements.”

“This acquisition allows us to increase our role as a general partner of MASSPOWER,” adds John Buehler, managing partner. “Energy Investors Funds seeks out opportunities like these that allow us to adhere to a philosophy of hands-on financial, operational, and strategic management.”

About Energy Investors Funds Group

Energy Investors Funds Group is 100% management owned and was founded in 1987 as the first investment manager to raise, close, invest, recapitalize, and liquidate the assets of a private equity power fund, and is the only private equity power fund manager with an established track record of long-term success.

The Group has mobilized over $1 billion in capital, and currently manages five private equity funds from its offices in Boston, New York, and San Francisco. These funds have made over 65 diversified investments, with a combined underlying asset value exceeding $5 billion. For more information visit www.eifgroup.com

The US Power Fund, L.P., which closed in December 2003, raised total commitments of $250 million from endowments and foundations, pension plans, fund-of-funds, high net worth individuals, banks and insurance companies, and utilities. The Fund principally targets investments in generation, transmission and energy service assets in the U.S.

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