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MAGMA POWER COMPANY FILES REGISTRATION STATEMENT COVERING A SECONDARY OFFERING OF 5.5 MILLION SHARES OF COMMON STOCK

 SAN DIEGO, May 27 /PRNewswire/ -- Magma Power Company (NASDAQ: MGMA) announced today that it has filed a registration statement for a secondary offering of 5.5 million shares of its outstanding common stock owned by The Dow Chemical Company and J.P. Morgan & Co. Incorporated. The underwritten offering will be managed by The First Boston Corporation and J.P. Morgan Securities Inc. The selling stockholders intend to sell only a portion of their Magma shares and following the offering each will continue to hold a significant position in the Company.
 As of May 3, 1993, The Dow Chemical Company owned 7,810,287, or 34 percent of Magma's common shares, and had options to purchase an additional 2 million shares for $21 a share. Dow intends to exercise 1.5 million options and sell a total of 5 million shares in the offering. Following the offering, Dow will continue to own about 4 million Magma shares, which are currently held in escrow for exchangeable notes that were issued March 20, 1991. Dow will also hold options to acquire an additional 500,000 Magma shares. J.P. Morgan & Co. Incorporated owns 975,000, or 4 percent of the Company's shares, and will sell 500,000.
 The Dow Chemical Company intends to use the proceeds from the sale of its shares for general corporate purposes and to reduce debt. J.P. Morgan & Co. Incorporated intends to use the proceeds from the sale of its shares for general corporate purposes. Dow will continue to provide technical and management services to the Company under a Technical Services Agreement which was recently extended until Jan. 1, 2000.
 The Company intends to use the $31.5 million net proceeds from Dow's exercise of its 1.5 million options for general corporate purposes.
 A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication 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. A copy of the prospectus included in Magma Power's Registration Statement can be obtained from the Securities and Exchange Commission in Washington D.C. 20659.
 Magma Power Company operates seven geothermal power plants in Southern California on geothermal leasehold and fee interests held by the Company, and holds additional geothermal interests in other parts of Southern California and in Nevada.
 -0- 5/27/93
 /CONTACT: Wallace C. Dieckmann, VP, treasurer & controller, or Ralph W. Boeker, president, of Magma Power, 619-622-7800/
 (MGMA)


CO: Magma Power Co.; The Dow Chemical Co. ST: California IN: OIL UTI SU: OFR

JL -- SD002 -- 2783 05/27/93 08:40 EDT
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Publication:PR Newswire
Date:May 27, 1993
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