Correction: Fitch Initiates Coverage on Mission Energy Holding, Edison Mission & Midwest Generation.

NEW YORK -- (This is an amended version of a press release issued earlier today. The newly assigned ratings, which are Fitch initiated ratings and was not specified in the original version, are listed as such in the second paragraph.)

Fitch Ratings has initiated credit ratings on the debt of Mission Energy Holding Company. (MEHC), Edison Mission Energy (EME) and Midwest Generation, LLC. (MWG) as follows:

MEHC

-- Senior secured debt 'B-'.

EME

-- Senior unsecured 'B'.

MWG

-- First priority lien term loan and revolver 'B+'.

MWG

-- Second priority notes 'B'.

The Rating Outlook is Stable for the MEHC, EME and MWG securities. The ratings were initiated by Fitch as a service to users of its ratings and are based on public information.

The ratings and Stable Rating Outlook reflect MEHC group's high debt leverage, weak coverage ratios and merchant generation exposure. The ratings also assume debt reduction, albeit from very high levels at June 30, 2004, with the expected proceeds from MEHC's recently announced agreement to sell its ownership interest in Contact Energy and its other international assets for approximately $3 billion. The transaction is expected to close by the end of this year and MEHC expects to book an approximate $550 million gain upon the transaction's close. Fitch anticipates that debt reduction associated with the transaction will approximate $5 billion, including unconsolidated, off-balance sheet obligations. The sale agreement is part of a larger restructuring plan initiated in the fourth quarter of 2003 to address then looming debt maturities that threatened to render MEHC and its subsidiaries insolvent. The ratings do not anticipate support from parent company Edison International.

Partial implementation of the restructuring plan, which is likely to be completed in early 2005 with the closing of the proposed international asset sale and use of proceeds to repay debt, will avert the threat of insolvency for the near-to-intermediate term. This, combined with firmer wholesale energy prices, is expected to result in a more stable outlook for the companies. Nonetheless, Fitch expects MEHC and is subsidiaries to emerge from the restructuring with high debt relative to cash flows, limited financial flexibility and ongoing exposure to volatile wholesale energy markets. Lower wholesale power prices are a primary source of concern for investors, but lower fixed costs due to the ongoing restructuring and the fuel cost advantage provided by MEHC's coal-fired generation in Illinois and Pennsylvania is a partial mitigant.

Midwest Generation, LLC, an indirect operating subsidiary of EME, operates approximately 5,600 megawatts of primarily coal-fired generating capacity located in Illinois. The output from the plant is sold under contracts with Exelon Generation that began rolling off in 2003 and will terminate in 2005, as well as the spot market and under short-term contracts. In addition to the international assets earmarked for divestiture, EME currently owns the three unit 1,884 megawatt Homer City coal-fired facility in Pennsylvania and several cogeneration projects operating in California. Following the sale of its international interests, EME's will operate exclusively in the U.S. Mission Energy Holding Co. was formed in July 2001 to hold the common stock of EME.

MEHC, EME and MWG are subsidiaries of Edison International (EIX) senior unsecured debt rated 'BB' by Fitch. (For further information, refer to Fitch's EIX Credit Analysis Report dated June 10, 2004 and available on the Fitch Ratings web site at 'www.fitchratings.com'.)