Dynegy Confirms Earnings Estimates

Business Wire, Oct 1, 2001

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Oct. 1, 2001

Dynegy Inc. (NYSE:DYN) today announced that it expects to meet or exceed current First Call consensus estimates for 2001 of $2.07 recurring earnings per diluted share. Management also reaffirmed that it expects to meet recurring earnings estimates for 2002 of $2.50 to $2.60 per diluted share.

"Fundamentally, the energy industry has been and will continue to be one of the strongest sectors in our global economy," said Chuck Watson, chairman and chief executive officer of Dynegy Inc. "Recent events and the general economic downturn have not adversely impacted the outlook for our merchant energy business and are not expected to affect our earnings growth or slow our momentum.

"The volatility found in current energy markets is expected to continue, creating an even greater `flight to quality' by companies recognizing the need for an energy partner with a reliable physical delivery network," added Watson. "We are confident that our origination and risk management capabilities, our status as a national energy merchant with a diverse and balanced physical portfolio, and our experience navigating competitive markets for our customers will make Dynegy the provider-of-choice."

Dynegy will release third quarter 2001 earnings on Monday, October 15, 2001 prior to the opening of the New York Stock Exchange. The company will host an analyst conference call to review third quarter results during the morning of October 15.

Dynegy Inc. is a leading energy merchant and power generator in North America, the United Kingdom and Continental Europe. A Fortune 100 company, Dynegy in 2000 established its communications business, Dynegy Global Communications, which is engaged in providing network solutions and connectivity to wholesale customers worldwide.

Certain statements included in this news release are intended as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These statements include assumptions, expectations, predictions, intentions or beliefs about future events. 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 from those Dynegy expects include changes in commodity prices for energy or communications products or services; the timing and extent of deregulation of energy markets in the U.S. and Europe; general capital market conditions; the effectiveness of Dynegy's risk management policies and procedures and the creditworthiness of customers and counterparties; the liquidity and competitiveness of wholesale trading markets for energy commodities, including the impact of electronic or online trading in these markets; operational factors affecting Dynegy's power generation or Dynegy's midstream natural gas facilities; uncertainties regarding the development of, and competition within, the market for broadband services in the U.S. and Europe; and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting Dynegy's business. More information about the risks and uncertainties relating to these forward-looking statements are found in Dynegy's SEC filings, which are available free of charge on the SEC's web site at http://www.sec.gov.