HOUSTON--(BUSINESS WIRE)--Aug. 2, 2004--Dynegy Inc. (NYSE:DYN) today announced that it has completed the sale of its 50 percent interest in the 123-megawatt Michigan Power natural gas-fired qualifying facility (QF) located near Ludington, Mich., to Delphi Power Partners, LLC. Delphi is owned by Delta Power Company, LLC and John Hancock Financial Services. Delta Power owns the remaining 50 percent interest in the project through its affiliate, White Pine Energy, LLC. Terms of Dynegy's sale to Delphi were not disclosed.

The sale of Michigan Power was previously identified as part of the company's divestiture of non-core power generation assets. To date in 2004, Dynegy has sold its interests in the Michigan Power and Oyster Creek (Texas) QFs, as well as its interest in power generation facilities in Costa Rica and Jamaica. In addition, the company has announced plans to sell its interests in the Commonwealth (Virginia) and Hartwell (Georgia) natural gas-fired peaking facilities, with the completion of these sales anticipated in the fourth quarter for Commonwealth and late third quarter/early fourth quarter for Hartwell. Dynegy believes it remains on target to raise approximately $170 million in connection with the sale of non-core generation assets in 2004.

Dynegy's ongoing power generation business consists of a geographically diverse fleet of baseload, intermediate and peaking power plants fueled by a mix of coal, fuel oil and natural gas. Located in 12 U.S. states, the portfolio is well-positioned to capitalize on regional differences in power prices and weather-driven demand. The power generation business also manages commodity price risk associated with fuel procurement and trades around its assets to deliver products and services to the nation's wholesale energy system.

Dynegy Inc. provides electricity, natural gas and natural gas liquids to customers throughout the United States. Through its energy businesses, the company owns and operates a diverse portfolio of assets, including power plants totaling 11,885 megawatts of net generating capacity, gas processing plants that process approximately 1.8 billion cubic feet of natural gas per day and nearly 38,000 miles of electric transmission and distribution lines.

Delta Power Company, LLC, headquartered in Morristown, N.J., is a leading privately held independent power producer with operating power plants located throughout the U.S.

Certain statements included in this news release are intended as "forward-looking statements." These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the company's ability to consummate the sales of its Commonwealth and Hartwell facilities in the anticipated timeframes. Dynegy cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Some of the key factors that could cause actual results to vary materially from those expected include the receipt of required regulatory and other approvals and the satisfaction of other closing conditions. More information about the risks and uncertainties relating to these forward-looking statements are found in Dynegy's SEC filings, including its Annual Report on Form 10-K for the year ended Dec. 31, 2003, as amended, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, as amended, which are available free of charge on the SEC's web site at http://www.sec.gov.