CPN Calpine Corp.

Calpine Announces Results of Its Offer to Purchase for Cash Any and All Outstanding 95/8% First Priority Senior Secured Notes Due 2014 SAN JOSE, Calif., July 12 /PRNewswire-FirstCall/ -- Calpine Corporation (NYSE:CPN) announced today that it has accepted for payment $138,895,000 aggregate principal amount of its outstanding 95/8% First Priority Senior Secured Notes due 2014 (the "Notes") under the terms of the tender offer (the "Offer") commenced June 9, 2005 to purchase for cash any and all of the outstanding Notes. Payment for the Notes accepted for purchase and return of all other Notes tendered and not accepted for purchase will be carried out promptly by the tender agent. With completion of the tender offer, the Company now has approximately $646,105,000 aggregate principal amount of Notes outstanding. The Company recently completed the disposition of its remaining U.S. gas assets (the "Gas Divestiture"). The consummation of the Gas Divestiture qualifies as an "Asset Sale" under the Indenture, dated as of September 30, 2004 (the "Indenture"), between the Company and Wilmington Trust Company, as Trustee, pursuant to which the Notes were issued. Accordingly, the Offer was made in compliance with the Indenture's requirements applicable to repurchases and repayment of the Notes using the proceeds of "Asset Sales" such as the Gas Divestiture. For questions and information about the tender offer, please contact the information agent, MacKenzie Partners, Inc., toll free at 877-278-6310. A major power company, Calpine Corporation supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states, three Canadian provinces and in the United Kingdom. Its customized products and services include wholesale and retail electricity, natural gas, gas turbine components and services, energy management, and a wide range of power plant engineering, construction and operations services. Calpine was founded in 1984. It is included in the S&P 500 Index and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information, visit http://www.calpine.com/ . This news release discusses certain matters that may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or current expectations of Calpine Corporation ("the Company") and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. Such risks include, but are not limited to, those risks identified from time-to-time in the Company's reports and registration statements filed with the SEC, including the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2004 and in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2005, which can be found on the Company's website at http://www.calpine.com/. All information set forth in this news release is as of today's date, and the Company undertakes no duty to update this information. DATASOURCE: Calpine Corporation CONTACT: media, Katherine Potter, +1-408-995-5115, ext. 1168, or investors, Rick Barraza, +1-408-995-5115, ext. 1125, both of Calpine Corporation Web site: http://www.calpine.com/

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