Mirant signs agreements to acquire two power plants in Southeast

ATLANTA, Aug. 8, 2001 – Mirant today announced the execution of a contract to acquire two power plants located in Florida and Georgia from El Paso Corporation.

“We see this asset combination as a great opportunity to participate in two of the fastest growing markets in the country,” said David Rozier, chief executive officer of Mirant’s southern U.S. operations. “These acquisitions provide a clear complement to Mirant’s fully integrated asset, marketing and risk management capabilities.”

The additional generating capacity from the El Paso facilities would bring Mirant closer to its aggressive target of owning or controlling 35,000 megawatts in North America by 2005.

Mirant is acquiring from El Paso a 640-megawatt natural gas-fired power plant in Thomaston, Ga., and a 480-megawatt natural gas-fired plant in New Port Richey, Fla., north of Tampa. The Georgia plant uses four combustion turbines and has been operational since June 2000, while the Florida plant, using three combustion turbines, is scheduled to begin commercial operation in March 2002.

“This transaction enables El Paso to optimize the value of these assets while redeploying the capital to our growing and diverse power generation portfolio,” said Clark C. Smith, president of El Paso Merchant Energy, North America. “We will continue to pursue greenfield power development and acquisition opportunities in strategic locations across North America.”

Mirant would continue to provide power from both plants to customers under a variety of power purchase agreements, helping to meet substantial existing and future demand in both states.

The transaction is subject to regulatory and certain third party approvals.

El Paso Corporation is committed to meeting energy needs throughout North America and the world with operations that span the energy value chain from wellhead to electron. The company is focused on speeding the development of new energy sources to address critical energy shortages across the globe. Visit El Paso at www.elpaso.com .

Mirant develops, constructs, owns and operates power plants and sells wholesale electricity, natural gas and other energy commodities. Headquartered in Atlanta, with 10,000 employees worldwide, Mirant has operations in North America, Europe and Asia. Mirant owns or controls more than 21,500 megawatts of electric generating capacity around the world, with another 7,900 megawatts of announced development. In North America, Mirant controls a natural gas asset base, including transportation, storage and access to approximately 3.8 billion cubic feet per day of natural gas production.

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