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CALIFORNIA ENERGY INCREASES ITS OFFER FOR MAGMA POWER TO $38.50 PER SHARE

 OMAHA, Neb., Oct. 21 /PRNewswire/ -- California Energy Company, Inc. (NYSE: CE) ("CECI") announced today that it has increased its offer to purchase Magma Power Company to $38.50 per share, consisting of $28.50 per share in cash and $10.00 per share of CECI stock.
 In connection with this enhanced proposal, CECI has extended the expiration date of its pending cash tender offer for 51%, or 12,400,000 of Magma's shares to Friday, November 4, 1994 and has increased the cash price to $38.50 net per share.
 CECI also confirmed its intention to solicit consents to call a special meeting of Magma's shareholders to elect four new members to Magma's Board of Directors who would ensure that Magma gives proper consideration to this enhanced offer. CECI also announced it would commence a series of investor and shareholder presentations beginning Tuesday, October 25, 1994. These presentations would highlight to Magma shareholders the benefits of the CECI acquisition proposal.
 David L. Sokol, CECI's Chairman and Chief Executive Officer, stated: "We sincerely hope that Magma's Board of Directors will negotiate and sign a merger agreement with us so that all Magma shareholders can receive the benefits of our acquisition offer. In any event, we are now putting forth our best acquisition proposal, and are beginning a consent solicitation to provide Magma's shareholders the right to express their views directly on the merits of our proposal. We have increased the cash price of our Tender Offer which should provide Magma shareholders with an additional mechanism to communicate to Magma's Board their support of CECI's acquisition offer."
 California Energy Company is a leading international developer, owner and operator of geothermal and other environmentally responsible power generation facilities. Its six existing facilities currently produce in excess of 325 MW of power with an additional 300 MW under construction.
 -0- 10/21/94
 /CONTACT: David L. Sokol, chairman, president & chief executive officer, 402-330-8900; or Mark H. Harnett, of Mackenzie Partners 212-929-5877/
 (CE)


CO: California Energy Company; Magma Power ST: Nebraska IN: OIL SU:

CP -- MN013 -- 6973 10/21/94 12:56 EDT
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Publication:PR Newswire
Date:Oct 21, 1994
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