Southern Company Selects Vogt Power to Supply Equipment for Florida IGCC Plant.

DANVERS, Mass. -- Vogt Power International Inc. (VPI), located in Louisville, KY, a subsidiary of Babcock Power Inc., based in Danvers, MA, announced today that it was selected by Southern Power, a subsidiary of Southern Company, to supply the Heat Recovery Steam Generator (HRSG) and associated equipment for the Orlando Utilities Commission, Curtis H. Stanton Energy Center, located in Orlando, Florida. This project was selected by the Department of Energy's National Energy Technology Laboratory for the Clean Coal Power Initiative to demonstrate advanced power generation systems using Integrated Gasification Combined Cycle technology (IGCC).

IGCC technology produces a clean synthesis gas from coal that is combusted in a gas turbine to generate electricity. Today IGCC is considered one of the most environmentally preferred technologies to generate electricity from coal and has high potential to capture CO2 for industrial use or for sequestration. The system being developed by Southern Company and its partners will add advanced emission controls to make it one of the cleanest, most energy-efficient coal-fueled power plants built to date.

Vogt Power will design, engineer, manufacture and deliver one duct fired, three pressure level, natural circulation HRSG, to be installed behind a modified GE Frame 7FA gas turbine. The HRSG will be equipped with a multi-pollutant control system including an SCR system for NOx removal and CO catalyst for carbon monoxide reduction. The Stanton Energy Center, which is co-owned by Orlando Utilities Commission and Southern Power, will produce 285 megawatts of electricity for the Orlando area - which will power approximately 285,000 households - and is scheduled to begin operation in 2010.

"We are excited about our participation in this project which is one of only three projects proceeding that were selected under the second round of President Bush's Clean Coal Power Initiative," stated Mike LeClair, president of Vogt Power. "Vogt equipment has been at the forefront of IGCC technology since 1996, when our HRSG began operating at Tampa Electric's Polk Power Station, which is one of only two IGCC power plants currently operating in the U.S. Thus, we are pleased to be working with Southern Company on the next stage of advancement for this technology, which will help meet the Nation's growing demand for low-cost electricity while protecting the environment."

With 4.3 million customers and more than 41,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier energy company serving the Southeast, one of America's fastest-growing regions. A leading U.S. producer of electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, as well as fiber optics and wireless communications. Southern Power, a subsidiary of Southern Company, acquires, builds, manages and owns generation assets that have been contracted for the wholesale market.

Babcock Power Inc., through its subsidiaries, is one of the world's leading suppliers of technology, equipment and services to the power generation industry. Babcock Power subsidiary companies include; Vogt Power International (Louisville, KY), Thermal Engineering International (USA) Inc. (Santa Fe Springs, CA), Babcock Power Environmental, Riley Power Inc. and Babcock Power Services (Worcester, MA), Boiler Tube Company of America (Lyman, SC), and TEi Construction Services, Inc. (Duncan, SC).