Globeleq to purchase South Asian power portfolio

HOUSTON, 1 August 2005 – Globeleq, the emerging markets power company, announced today that it had reached agreement with El Paso Corporation to purchase their portfolio of power generation assets in South Asia for $109 million.

“This portfolio acquisition will solidify our position in Asia, adding two key South Asian markets,” said Globeleq CEO Robert Hart. “We will be poised to support the further growth of the electric sector in this important and growing region.”

The transaction is projected to close in stages, with the final stage projected to close in the fourth quarter of 2005. It includes over 600 net equity megawatts (MW) in several projects in Bangladesh, Pakistan, Indonesia and the Philippines.

Arun Sen, Globeleq Executive Vice President for Asia, commented “We are very pleased to have reached this agreement. This transaction will add to our existing positions in Bangladesh and give us strong positions in Pakistan and Indonesia, two countries with strong demand growth in the electric sector.”

Globeleq currently owns over 900 MW of generating capacity in Asia, including more than 800 MW of new natural gas-fired generation in Bangladesh.

With investments of over $550 million, Globeleq is the only operating power company solely focused on the emerging markets of Africa, the Americas and Asia. Since 2002 the company has acquired more than 2,200 MW of generation capacity, reaching a total of more than 3,000 net equity MW in 21 projects in 16 countries. Globeleq is actively pursuing acquisitions and new project development.