Panda Adds 11th Project to Its Power Plant Lineup

Panda Energy International, Inc. has added an 11th project to its power plant line-up. This fast track company now has 17 gigawatts of electricity under development across the country. Panda's newest undertaking is a 1,000-megawatt (MW) facility near New Florence in Montgomery County, Mo., 65 miles west of St. Louis. Construction on Panda Montgomery Power, L.P., a natural gas-fired, combined cycle facility is expected to start in early summer of 2002 with commercial operation in late 2003.

Garry Hubbard, senior vice president of merchant plant development, said the Montgomery plant will fill a much needed power gap in this part of the country. "This Panda facility marks our entry into the MAIN grid which covers a portion of Mid-America including all of Illinois, and portions of Missouri, Wisconsin and Michigan comprising 7.5 million customers." Hubbard said. "It is therefore a very attractive area for Panda's expansion program in the United States."

Hubbard said the "state-of-the-art" facility will employ the most advanced technology available. Its gas turbines will be equipped with GE's advanced Dry Low NOx (DLN) combustion systems for emissions control. They are considered to be among the most efficient and cleanest gas-fired machines in operation today.

The turbines are part of a bulk order placed by Panda this year. "With the high market demand for turbines and the limited number of manufacturers, placing orders well in advance of actual placement dates is an essential part of our overall development strategy," Hubbard said.

Headquartered in Dallas, Texas, Panda is a privately held, non-regulated electric generation company. Its primary focus is the development, ownership and operation of clean, low-cost power plants. In addition to New Florence, the company has facilities under development near Coweta, Okla.; Gila Bend, Ariz.; El Dorado, Ark.; Allentown, Pa.; Culloden, W. Va.; and Port St. Lucie and Leesburg, Fla. Construction is under way on 1,000-megawatt plants in Paris, Marion and Odessa, Texas. The company also operates plants in Roanoke Rapids, N.C. and Brandywine, Md. Further information is available on Panda's Web site at www.pandaenergy.com.

SOURCE Panda Energy International, Inc.

CONTACT: Peggy Striegel, Public Relations of Striegel & Associates, 918-258-3536, or 800-663-1136, or email, ps@striegela.com, for Panda Energy International, Inc.

Web site: http://www.pandaenergy.com