CPN Calpine Corp.

Calpine and Siemens Westinghouse Restructure Services and Parts Support to Enhance Plant Performance SAN JOSE, Calif., July 22 /PRNewswire-FirstCall/ -- As part of its strategic initiative to reduce operating expenses and improve power plant performance, Calpine Corporation (NYSE:CPN) announced today that it has reached an agreement with Siemens Westinghouse (Siemens) to restructure its long-term relationship. The restructuring will cover Calpine's fleet of Siemens F- and G-class gas turbines and eight Siemens steam turbines, representing more than 12,000 megawatts of capacity. Calpine is one of the largest operators of Siemens turbines, with 42 Frame F and two Frame G gas turbines in operation today. The restructuring includes a five-year arrangement to purchase Siemens parts and services, provides greater operating and turbine maintenance flexibility, and enhances Calpine's position as a cost-competitive power producer. It also resolves outstanding issues between the companies, and offers extended warranties for Calpine turbines in construction and in storage. Working with Siemens, Calpine expects to retrofit its Siemens turbine fleet over the next 18 months to further maximize the availability of its power plant fleet. This restructuring arrangement is an integral part of Calpine's strategic program to optimize its power plant portfolio. As announced this May, the company has set in motion a program to lower its cost of production and improve plant productivity. Under this new services structure, Calpine benefits from having access to Siemens' services and parts capabilities on a company-wide scale. Calpine also intends to restructure its remaining long-term services agreements with Siemens for added operating and maintenance flexibility. The company is currently evaluating its remaining agreements and expects to complete this process by the end of 2005. "Today's announcement marks the beginning of a new and stronger relationship with Siemens," said Tom Mason, president of Calpine Power Company. "About half of Calpine's plants are powered by Siemens' units. With their continued support, Calpine will benefit from greater optionality to enhance its operations and maintenance capabilities and improve plant reliability in today's competitive power market." 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 as, but not limited to, 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 Quarterly Report on Form 10-Q for the quarter 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, 408-995-5115, ext. 1125, both of Calpine Corporation Web site: http://www.calpine.com/

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