Calpine Announces Pricing of 11.5 Million Shares of Common Stock, $518 Million of Convertible Preferred Securities and $1 Billion of Senior Notes.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 8, 2000

Calpine Corporation (NYSE:CPN), one of the nation's fastest growing independent power companies, announced today that it has priced its public offering of 11,500,000 shares of common stock, including exercise of the underwriters' over-allotment option, at $69.50 per share, the last sale price reported on the New York Stock Exchange on August 3, 2000, the day of pricing. Calpine also announced that it has priced its public offering of $1 billion of senior notes in two tranches: $250 million of 8-1/4% Senior Notes due 2005 and $750 million of 8-5/8% Senior Notes due 2010.

Proceeds from the common stock and senior notes offerings will be used to finance the construction and development of additional power generation facilities, to fund recently announced acquisitions, to refinance existing debt incurred to fund development and acquisition transactions and for working capital and general corporate purposes.

The joint-lead underwriters for the offering of common stock are Credit Suisse First Boston; Donaldson, Lufkin & Jenrette; and Goldman, Sachs & Co. The lead underwriter for the offerings of the senior notes is Credit Suisse First Boston.

Copies of the final prospectus supplements for the common stock offering and the senior notes offerings can be obtained from Credit Suisse First Boston, Eleven Madison Avenue, New York, N.Y.

Concurrent with these offerings, Calpine announced today that it has priced $517.5 million of convertible preferred securities, including exercise of the initial purchasers' option, in a Rule 144A private placement, priced to yield 5%, with a conversion premium of 25%.

Proceeds from the convertible preferred securities offering will be used to refinance in full a working capital revolving credit facility and a portion of a secured construction facility designed to finance the development of power projects. Any remaining proceeds will be used for working capital and general corporate purposes.

The convertible preferred securities have not been registered under the Securities Act of 1933 and may not be offered or sold 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, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Based in San Jose, Calif., Calpine Corporation is dedicated to providing customers with reliable and competitively priced electricity. Calpine is focused on clean, efficient combined-cycle, natural gas-fired generation and is the nation's largest producer of renewable geothermal energy. Calpine has launched the largest power development program in the U.S. To date, the company has approximately 25,700 megawatts of base load capacity and 4,700 megawatts of peaking capacity in operation, under construction, in announced development and pending acquisitions in 27 states and Alberta, Canada. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit its website at www.calpine.com.