Mirant Agrees to Sell Its Stake In Bewag to Vattenfall for USD 1.63 Billion

12/3/2001 5:50 AM EST

Mirant Agrees to Sell Its Stake In Bewag to Vattenfall for USD 1.63
Billion

BERLIN - Vattenfall AB (publ) and Mirant (NYSE: MIR) have signed an
agreement in which Vattenfall will buy Mirant's 44.8 percent ownership
position in the Berlin-based German power utility group, Bewag, for USD
1.63 billion.

"We are proud to have been a strategic investor in Bewag and to have
supported its efforts to become one of the most efficient, most
profitable power utilities in Germany," said Marce Fuller, president and
chief executive officer, Mirant. "Mirant remains committed to furthering
business interests in Germany and other European markets. We will
continue to take steps toward building an integrated energy business in
Europe much like our highly successful U.S. model, which combines
ownership of power generation and natural gas assets with energy
marketing and risk management expertise."

"I am extremely satisfied that we have reached this agreement with
Mirant. Bewag can now be fully integrated in the activities of the
Vattenfall Group," said Lars G Josefsson, president and chief executive
officer, Vattenfall. "This is a decisive step forward in the formation
of the new force in the German market, which will greatly benefit the
customers of Germany. All along, it has been our wish to include Bewag
in this co-operation and thereby make Berlin one of the focal points of
the Group. Also, this deal is a milestone as Vattenfall fulfills its
vision to be a leading European energy company."

Located in Germany's capital city Berlin, Bewag owns 29 power and steam
units generating 2,995 megawatts of electricity and 5,740 megawatts of
thermal energy sold for heating. Electric power is transmitted to
Bewag's approximately 2.2 million electric customers over 38,770
kilometers (24,233 miles) of cable, most of which is underground. The
total net sales for Bewag in fiscal year 2000/2001 were EUR 1.986
billion (approximately USD 1.763 billion).

In 1997, Mirant purchased an initial 26 percent interest in Bewag. In
2001, the company increased its ownership to 44.8 percent.

After completion of the agreement, the Vattenfall Group will own 89.6
percent of the shares in Bewag, representing 92 percent of the voting
rights. The remaining 10.4 per cent of the shares are traded on the
stock market. In addition to Bewag, the Vattenfall Group in Germany
today consists of HEW, Veag and Laubag. Vattenfall today owns 73.8
percent of HEW and will buy 25.1 percent of HEW shares owned by the City
of Hamburg and thereby become the only significant owner of HEW, if the
City of Hamburg decides to exercise its existing put option. With the
inclusion of Bewag, the net sales of the German companies will amount to
about EUR 5.5 billion on a proforma basis. Their aggregated annual
electricity generation will amount to 77 terawatt hours, and the heat
generation to 17 terawatt hours. The new group of companies will be the
third largest energy producer in Germany, and have over 24,000
employees.

The sale is contingent on approval by relevant anti-trust authorities.

Vattenfall's vision is to be a leading European energy company. Today,
Vattenfall generates power and supplies energy to several million
customers in the Nordic region and northern Europe. The largest
electricity customers are industrial plants and energy companies.
Vattenfall's main products are electricity and heat. The Group's net
sales in 2001, excluding operations in Germany, are estimated to over
EUR 4.2 billion.
For more information, see www.vattenfall.com

Mirant holds a top ten marketing and risk management position in Europe
and targets ownership or control of 10,000 megawatts in the region by
2005. The company is engaged in a broad range of activities in Italy,
Scandinavia and the United Kingdom.

Mirant is a leading, global competitive-energy company. The company
delivers value by integrating an extensive portfolio of power and
natural gas assets with marketing and risk management expertise. Mirant
has facilities in North America, the Caribbean, Europe and Asia, and
operates one of the world's largest energy commodity trading
organizations from its headquarters in Atlanta.

Mirant sees the opportunity to change the world with its energy. Come
see how at www.mirant.com.

Caution regarding forward-looking statements:

Some of the statements provided herein include forward-looking
information, in addition to historical information. Mirant and
Vattenfall each caution that there can be no assurance that such
indicative results will be realized and that there are various important
factors that could cause actual results to differ materially from those
indicated in the forward-looking statements, such as, but not limited to
(i) changes in government regulations (including environmental
regulations) and anticipated deregulation of the electric energy
industry; (ii) additional competition in the companies' respective
markets; (iii) potential business strategies of each company, including
acquisitions or dispositions of assets that the Mirant or Vattenfall may
pursue; (iv) political, legal, market (including, but not limited to,
energy and commodity supply, volume and pricing developments) and
economic conditions and developments in the companies' markets; (v)
financial market conditions and the results of financing efforts; (vi)
changes in commodity prices and interest rates; (vii) the performance of
the companies' respective projects and investments and the success of
efforts to develop new opportunities; (viii) the ability of the
companies to obtain any required regulatory approvals, including
competition authority approval and to satisfy any conditions to closing
of the sale; and (ix) other factors, whether discussed above or in
reports filed by Mirant (and its subsidiaries) with the U.S. Securities
and Exchange Commission. Both Mirant and Vattenfall expressly disclaim a
duty to update any of the forward-looking statements contained herein.

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