PSEG Global Acquires Majority Stake of Italian Power Development Company

1 November, 1999

PSEG Global announced today that it has completed the acquisition of 70% of Prisma 2000, a power project development company in Italy. The acquisition gives PSEG Global majority control of the company that includes over 550MW of power projects (Biomass/Hydro/Gas) either in development or under construction. Acquisition and equity investment requirements for PSEG Global for the next two years are expected to be approximately $80 million (US$).

Prisma 2000 was originally held 50% by Barguzin Holding Danmark and 50% by Société Financière Crèmonaise SA, which specializes in electricity generation from renewable energy resources. Société Financière Crèmonaise SA. will maintain a 30% ownership stake.

"The acquisition is a significant platform in the newly deregulated Italian energy market," commented Mr. Gareth J. Mann, Senior Vice President of PSEG Global, EAMS Region. "The Italian government and the European Union in general are increasingly emphasizing that a section of any IPP's base must be renewable. It is an essential part of the newly deregulated Italian power sector and keenly sought after."

"PSEG’s US utility, PSE&G, has taken a lead in working with environmental groups calling for tough US environmental standards and the development of environmentally friendly technology in the United States. This acquisition by PSEG Global, extends that leadership to other parts of the world," continued Mann.

PSEG Global develops, owns and operates electric generation and distribution facilities in selected domestic and international markets. Global has ownership interests in 26 generation facilities in operation, construction or advanced development in Argentina, China, India, the U.S., Tunisia and Venezuela. In addition, PSEG Global owns interests in six distribution companies providing electricity to 2.7 million customers in Argentina, Brazil, Chile and Peru. The company has assets valued at $1.7 billion. The EAMS region (covering Europe, Africa, Middle East & India) is headquartered in London supported by offices in India, Italy, Tunisia and Oman. PSEG Global is a direct subsidiary of PSEG Energy Holdings and an indirect subsidiary of Public Service Enterprise Group.

Public Service Enterprise Group