Calpine Corporation Announces Offering of Six Million Shares of Common Stock.

SAN JOSE, Calif.--(BUSINESS WIRE)--March 23, 1999--Calpine Corp. (NYSE:CPN), one of the nation's fastest growing independent power companies, announced today that it has priced its public offering of six million shares of common stock at $31.00 per share. In addition, Calpine has granted the underwriters an option to purchase up to an additional 900,000 shares of common stock to cover over-allotments, if any. Concurrent with the offering of common stock, Calpine is offering $500 million of senior notes.

Proceeds from the offerings will be used to refinance existing indebtedness, to fund pending acquisitions, to finance the construction and development of power generation facilities, and for working capital and general corporate purposes.

The managing underwriters for the offering of common stock are Credit Suisse First Boston, CIBC Oppenheimer, Donaldson, Lufkin & Jenrette, Goldman, Sachs & Co. and Salomon Smith Barney.

A copy of the final prospectus can be obtained from Credit Suisse First Boston, Eleven Madison Avenue, New York, New York.

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.

Calpine Corp. is a leading independent power company dedicated to providing customers with low-cost electricity and thermal energy. Calpine currently has more than 6,700 megawatts of capacity in operation, construction or announced development in 11 states--enough electricity to power over six and a half million households. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information, please visit Calpine's website at www.calpine.com.