Calpine Announces Results of Offer to Purchase Notes Due 2014

Calpine Corporation (NYSE: CPN) has accepted for payment $138,895,000 aggregate principal amount of its outstanding 95/8% First Priority Senior Secured Notes due 2014 (the "Notes") under the terms of the tender offer (the "Offer") commenced June 9, 2005 to purchase for cash any and all of the outstanding Notes. Payment for the Notes accepted for purchase and return of all other Notes tendered and not accepted for purchase will be carried out promptly by the tender agent. With completion of the tender offer, the Company now has approximately $646,105,000 aggregate principal amount of Notes outstanding.

The Company recently completed the disposition of its remaining U.S. gas assets (the "Gas Divestiture"). The consummation of the Gas Divestiture qualifies as an "Asset Sale" under the Indenture, dated as of September 30, 2004 (the "Indenture"), between the Company and Wilmington Trust Company, as Trustee, pursuant to which the Notes were issued. Accordingly, the Offer was made in compliance with the Indenture's requirements applicable to repurchases and repayment of the Notes using the proceeds of "Asset Sales" such as the Gas Divestiture.

For questions and information about the tender offer, please contact the information agent, MacKenzie Partners, Inc., toll free at 877-278-6310.