CPN Calpine Corp.

Calpine Announces Secured Notes Offering SAN JOSE, Calif., Sept. 23 /PRNewswire-FirstCall/ -- Calpine Corporation (NYSE:CPN) today announced that it intends to commence an offering of approximately $785 million of first-priority senior secured notes due 2014. The final principal amount and pricing will be determined by market conditions. These notes will be secured, directly and indirectly, by substantially all of the assets owned by Calpine, including its natural gas and power assets and the stock of Calpine Energy Services and other subsidiaries. Net proceeds from this offering are ultimately expected to be used to redeem or repurchase existing indebtedness through open-market purchases, and as otherwise permitted by the company's indentures. The secured notes will be offered in a private placement under Rule 144A, have not been registered under the Securities Act of 1933, and may not be offered in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy. Securities laws applicable to private placements under Rule 144A limit the extent of information that can be provided at this time. DATASOURCE: Calpine Corporation CONTACT: Katherine Potter, Media Relations, ext. 1168, Karen Bunton, Investor Relations, ext. 1121, both of Calpine Corporation, +1-408-995-5115 Web site: http://www.calpine.com/

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