Bolivian Power Co. reports third quarter 1996 results.

NEW YORK--(BUSINESS WIRE)--Nov. 14, 1996--Bolivian Power Company Limited (NYSE: BLP) today reported net income for the first nine months of 1996 of $15,931,000, or $3.79 per common share, compared to net income of $6,406,000, or $1.52 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 $2,457,000, or $0.58 per common share, during the first nine months of 1996. Operating revenue for the first nine months of 1996 was $15,136,000, versus $39,277,000 reported in the first nine months of 1995.

The nine months results for 1996 and 1995 include an after- tax charge of $2,105,000, or $0.50 per share, and $309,000, or $0.07 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 nine months of 1996 was 4,201,278, compared with 4,198,983 for the nine months of 1995.

Net income for the first nine months of 1996 includes a gain of $13,474,000, 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.

The Company reported a net loss for the third quarter of 1996 of $453,000 or a loss of $0.11 per common share, versus net income of $1,793,000 or $0.43 per common share, for the corresponding quarter a year ago. Third quarter net income for 1996 and 1995 includes an after-tax charge of $1,372,000, or $0.33 per share, and $42,000, or $0.01 per share, respectively, relating to the stock option charge discussed above. The Company reported operating revenue of $4,003,000 for the third quarter of 1996, compared with last year's third quarter revenue of $13,778,000. The average common shares outstanding for the third quarter of 1996 was 4,202,127, compared with 4,198,983 for the third quarter of 1995.

In a separate news release issued earlier today, Bolivian Power Company and NRG Energy, Inc. (NRG Energy) announced that they have entered into a definitive purchase agreement. Under the agreement, NRG Energy, through its wholly-owned subsidiary NRGenerating Holdings (No. 9) B.V., will commence a cash tender offer within five business days for all of the outstanding common stock of Bolivian Power Company at a price of US$43 per share. Bolivian Power's Board of Directors approved the purchase agreement as being fair and in the best interests of the Company and its stockholders. The expiration date of the offer will be 20 business days following the commencement of the tender offer, unless the offer is extended. UBS Securities LLC and Donaldson, Lufkin & Jenrette Securities Corporation acted as financial advisors to Bolivian Power Company in connection with the transaction. Deutsche Morgan Grenfell is representing NRG Energy and will be acting as Dealer Manager for the tender offer.

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 153 MW and 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.

NRG Energy is a wholly-owned, unregulated subsidiary of Northern States Power Company. NRG Energy currently owns and/or operates 3,200 megawatts of generating capacity in the United States, Germany and Australia.

CONTACT: Lawrence S. Coben  or Stuart M. Carlisle

CEO, Bolivian Power Company Burson-Marsteller

212-750-6700 212-614-4000