CPN Calpine Corp.

In the news release, Calpine Announces Offer to Purchase 9 5/8% First Priority Senior Secured Notes due 2014 for Up to $400,000,000 Million in Aggregate Cash Consideration, issued yesterday, Dec. 1, by Calpine Corporation (NYSE: CPN) over PR Newswire, the headline should read Calpine Announces Offer to Purchase 9 5/8% First Priority Senior Secured Notes due 2014 for Up to "$400,000,000" in Aggregate Cash Consideration, rather than "$400,000,000 Million" as incorrectly transmitted by PR Newswire. Complete, corrected release follows: SAN JOSE, Calif., Dec. 1 /PRNewswire-FirstCall/ -- Calpine Corporation (NYSE:CPN) announced today the commencement of a tender offer (the "Offer") to purchase for aggregate cash consideration not to exceed $400,000,000 (the "Maximum Tender Amount") such portion of the outstanding 9 5/8% First Priority Senior Secured Notes due 2014 (the "Notes") as are validly issued and not withdrawn up to the Maximum Tender Amount. The aggregate principal amount of the outstanding Notes is currently $646,105,000. Subject to the terms and conditions of the Offer, the consideration for the Notes validly tendered pursuant to the Offer on or prior to 12:00 midnight, New York City time, on the Expiration Date (as defined below) (the "Offer Consideration") shall be $1,000 per $1,000 principal amount of the Notes, plus accrued and unpaid interest up to, and including, the settlement date for the tender offer, which will be promptly following the Expiration Date. The Offer is scheduled to expire at 12:00 midnight, New York City Time, on December 29, 2005, unless extended or earlier terminated (the "Expiration Date"). Tendered Notes may be withdrawn at any time prior to 12:00 midnight, New York City Time, on the Expiration Date. The Company is making this Offer to avail itself of the opportunity to reduce its first lien indebtedness by applying the proceeds of the sale in July 2005 of certain U.S. natural gas assets to the purchase of the Notes. Notwithstanding any other provision of the Offer, Calpine's obligation to accept for purchase, and to pay for, Notes validly tendered pursuant to the Offer is conditioned upon satisfaction or waiver of certain conditions as set forth in the Offer to Purchase. Calpine, in its sole discretion, may waive any of the conditions of the tender offer in whole or in part, at any time or from time to time. Calpine reserves the right in its sole discretion to extend, amend or terminate the Offer, subject to applicable law. This press release is not an offer to purchase or a solicitation of an offer to sell any securities, which is being made only pursuant to the Offer to Purchase, dated December 1, 2005. Calpine has retained The Bank of New York to serve as the Tender Agent and MacKenzie Partners, Inc. to serve as Information Agent for the Tender Offer. Additional information, and copies of the Offer to Purchase, the Letter of Transmittal and other documents, may be obtained from MacKenzie Partners, Inc. at (800) 322-2885 or by calling (212) 929-5500 collect or in writing at 105 Madison Avenue, New York, New York 10016. None of Calpine, the Tender Agent or the Information Agent makes any recommendation as to whether or not holders of Notes should tender their Notes pursuant to the Offer. Holders must make their own decision as to whether to tender their Notes, and if tendering, the principal amount of Notes to tender. In any jurisdiction where the laws require the Offer to be made by a licensed broker or dealer, the Offer will be deemed made on behalf of Calpine by one or more registered brokers or dealers under the laws of such jurisdiction. 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 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 September 30, 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, +1-408-792-1168, or , or Investor Relations, Rick Barraza, +1-408-792-1125, or , or Karen Bunton, +1-408-792-1121, or , all of Calpine Web site: http://www.calpine.com/

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