DPL - Montpelier Units One and Two Now Commercial; Completes the First Half of Phase Five.

Business Editors

DAYTON, Ohio--(BUSINESS WIRE)--June 5, 2001

DPL Inc. (NYSE:DPL) today announced the commercial operation of Unit 1 and Unit 2 at its new Montpelier, Indiana generating station, located northeast of Indianapolis.

These units, two of four 56 megawatt (MW) Pratt & Whitney units that make up Phase Five of DPL's merchant generation expansion program, add 112 MW to DPL's growing merchant generating fleet. With this addition, DPL has brought 432 MW online this year, increasing its ability to provide reliable electric energy to the ECAR market.

The addition of Montpelier Unit 1 and Unit 2 brings DPL's total generating capacity to 3,927 MW, an increase of 26% over the last four years. These units were built ahead of schedule, on budget and will be immediately accretive to earnings. The remaining generating units located at Montpelier will be brought online during the next several weeks, in time for the summer markets.

DPL's total 2001 merchant generation expansion is expected to total 544 MW and represents a combined $215 million investment. This additional capacity has been sold forward for the 2001 market. Of DPL's total generating capacity, 1,055 MW are natural gas fired combustion turbines.

These merchant generation projects are developed and managed by DPL Energy, an unregulated subsidiary of DPL focused on merchant generation expansion.

DPL Inc. is a diversified regional merchant energy company. DPL's principal subsidiaries include DPL Energy and The Dayton Power & Light Company ("DP&L"). DPL Energy operates 3,927 megawatts of generation capacity and markets wholesale energy throughout the eastern half of the United States. DP&L provides electric services to 500,000 retail customers in West Central Ohio. DPL Inc., through its subsidiaries, has ranked among the top ten energy companies in generation efficiency and productivity for the last ten years. Further information on DPL Inc. can be found at www.dplinc.com.

This press release may contain certain forward-looking statements regarding plans and expectations for the future. Investors are cautioned that actual outcomes may vary materially from those projected due to various factors beyond DPL's control. Such matters are described in the Company's 2000 Annual Report and Form 10-K.