Calpine Corporation Announces Two-for-One-Stock Split and Proposed Offering of Common Stock and Convertible Preferred Securities.

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 20, 1999--

Calpine Corporation (NYSE:CPN), one of the nation's fastest growing independent power companies, announced today that its Board of Directors has authorized a two-for-one split of its common stock for stockholders of record as of September 23, 1999.

The shares resulting from this split are expected to be distributed after the market closes on October 7, 1999.

In addition, the company has filed a registration statement with the Securities and Exchange Commission relating to a proposed public offering of six million shares (post split) of common stock. 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. Calpine also expects to offer approximately $200 million of convertible preferred securities of a subsidiary trust concurrently with the offering of its common stock.

Proceeds from the offerings will be used to finance the construction and development of additional power generation facilities and to fund the recently announced acquisitions of Cogeneration Corporation of America and Sheridan Energy, Inc.

A registration statement relating to the common stock has been filed with the Securities and Exchange Commission but has not yet become effective. Neither the common stock nor the convertible preferred securities may be sold nor may offers to buy be accepted prior to the time that a registration statement relating to such securities becomes effective. 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 Corporation is national power company dedicated to providing customers with reliable and competitively priced electricity and thermal energy. Calpine currently has approximately 8,900 megawatts of capacity in operation, pending acquisition, under construction or in announced development in 14 states -- enough energy to power nearly nine million households. Calpine has headquarters in San Jose, Calif., with regional offices in Houston, Texas; Pleasanton, Calif.; and Boston, Mass. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. To learn more about Calpine, visit its website at www.calpine.com.