Bolivian Power Co. reports second quarter 1996 results.

NEW YORK--(BUSINESS WIRE)--Aug. 14, 1996--Bolivian Power Company Limited (NYSE: BLP) today reported net income for the first six months of 1996 of $16,384,000, or $3.90 per common share, compared to net income of $4,613,000, or $1.10 per common share, in the same period of 1995. Excluding the gain on the sale of its distribution assets during the first quarter of 1996, the Company reported net income of $2,895,000, or $0.69 per share, during the first six months of 1996. Operating revenue for the first six months of 1996 was $11,133,000, versus $25,499,000 reported in the first six months of 1995.

The six months results for 1996 and 1995 include an after-tax charge of $733,000, or $0.17 per share, and $267,000, or $0.06 per share, respectively, relating to the stock options certain executive officers have with respect to 719,206 shares of Bolivian Power stock owned by Liberty Power/Cogentrix Bolivia, as described in the Company's press release dated April 11, 1996. The average common shares outstanding for the first six months of 1996 was 4,200,849, compared with 4,198,983 for the six months of 1995.

Net income for the first six months of 1996 includes a gain of $13,489,000, or $3.21 per common share, relating to the sale of the Company's former distribution subsidiaries on January 11, 1996. The operations of Eletricidad de la Paz (Electropaz), Empresa de Luz y Fuerza Electrica de Oruro, S.A. (ELF) and Compania Administradora de Empresas (CADE) were sold, pursuant to the Bolivian Electricity Law enacted in December 1994, to Iberdrola Investimentos Sociedade Unipessoal L.D.A. of Portugal, a wholly-owned subsidiary of Iberdrola Investimentos Sociedada Unipessoal, a Spanish electric utility.

Net income for the second quarter of 1996 was $1,201,000 or $0.29 cents per common share, versus net income of $2,452,000 or $0.58 cents per common share, for the corresponding quarter a year ago. Second quarter net income for 1996 and 1995 includes an after-tax charge of $561,000, or $0.13 per share, and $267,000, or $0.06 per share, respectively, relating to the stock option charge discussed above. The Company reported operating revenue of $5,366,000 for the second quarter of 1996, compared with last year's second quarter revenue of $13,090,000. The average common shares outstanding for the second quarter of 1996 was 4,202,127, compared with 4,198,983 for the second quarter of 1995.

Lawrence S. Coben, Chief Executive Officer of Bolivian Power and a Managing Director of Liberty Power Latin America, said: "Our operations have changed demonstrably from a year ago, making period-to-period comparisons somewhat difficult. The sale of our distribution assets has transformed Bolivian Power from a supplier of electricity to retail consumers to a wholesale distributor of electricity to our former subsidiaries, Electropaz and ELF, two of the largest electricity distributors in Bolivia."

Sales of electricity in the first six months of 1996 were 468,551,000 megawatt hours, compared to sales to retail consumers of 458,787,000 megawatt hours in the first half of 1995. For the second quarter, sales of electricity were 215,572,000 megawatt hours, compared to sales to retail consumers of 223,604,000 megawatt hours during the year ago period.

Mr. Coben continued, "We are continuing the expansion of the 65.6 MW Zongo Valley hydroelectric project, which should come on-line in full capacity in 1998. The expansion will entail adding generation facilities, modernizing existing facilities and constructing transmission lines to transmit the increased generation capacity. The added capacity provided by these plants will meet the rapidly growing domestic demand for electricity. We also have the right, under the terms of our concession with the Bolivian government, to expand our facilities in the Miguillas Basin, which, if completed, would add another 200 MW of generation capacity. We anticipate making a decision on whether to proceed with the project later this year.

"The Company is also moving ahead in evaluating strategic alternatives to maximize the value of Bolivian Power to its shareholders," added Mr. Coben. "These alternatives include the possibility of establishing a strategic partnership with another entity and/or selling up to a 100% equity interest in the Company."

Bolivian Power Company (NYSE:BLP) - Compania Boliviana de Energia Electrica S.A., generates and transmits electricity in La Paz and Oruro, Bolivia with 14 generating facilities representing an installed capacity of approximately 153MW nad has an additional 65.6 MW under construction as part of its Zongo Valley expansion Project. The Company is incorporated in Nova Scotia, Canada, and maintains offices in La Paz and New York City.

Liberty Power/Cogentrix Bolivia owns 17.1% of the Company's shares. This entity is an indirect, wholly-owned subsidiary of Cogentrix Energy, Inc., a North Carolina based independent power producer. Liberty Power Latin America, L.P., is a developer of independent power plants in Latin America and provides certain members of the Company's senior executive management team, including the Chief Executive Officer.

CONTACT: Lawrence S. Coben or Stuart M. Carlisle

CEO, Bolivian Power Company Burson-Marsteller

212-750-6700 212-614-4000