| FROM: | Alliance Energy Renewables, LLC | FOR IMMEDIATE RELEASE |
| CONTACT: | Jane E. Rubinstein Rubenstein Associates 212-843-8287 direct / 516-993-0708 cell |
|
ALLIANCE ENERGYCOMPLETES ACQUSITION OF MIRANT NY-GEN
Addition of Hydro-Electric and Natural Gas-Fired Facilities Strategically Positions Company As Clean Fuel, Green Energy Generator
(New York, NY - May 23, 2007) - Alliance Energy Renewables, LLC ("Alliance Renewables") has completed the acquisition of Mirant NY-Gen, LLC and all of its membership interests, including three hydro-electric and two natural gas-fired electric generating assets. The acquisition was made following Mirant NY-Gen's reorganization under bankruptcy protection.
With the acquisition of the Mongaup, Rio and Swinging Bridge hydro facilities, with combined capacity of 25 MW and the 51 MW Hillburn and 44 MW Shoemaker natural gas peakers, Alliance Renewables immediately takes an industry leadership position in clean fuel and renewable power generation in the New York energy market.
"We are very excited about this acquisition and operation of these facilities, as well as restoration of water levels in the Swinging Bridge Reservoir," said Sam Nappi, Chairman of Alliance Renewables. "Our work is just beginning as we work diligently to expedite the restoration process initiated by the former owner. The original work schedule, which called for a September 2007 completion, has been accelerated by Alliance for some time in July. Until that work is completed, recreational use is still prohibited in the Reservoir. Alliance Renewables recognizes the critical importance of recreation in the Mongaup, Rio and Swinging Bridge system and looks forward to working as an active environmental, recreational and economic partner for Sullivan County."
"Further, the Company anticipates continued conversion of existing operating assets to clean fuels such as bio-fuels, and we intend to take advantage of future growth opportunities in renewable and clean fuel technologies," explained Mr. Nappi. "We look forward to clean and renewable environmental advances at the Hillburn and Shoemaker facilities in Orange County and partnership opportunities in that community as well."
Both the Federal Regulatory Commission and the New York Public Service Commission approved the acquisition in April 2007.
About Alliance Energy Renewables
Alliance Energy Renewables, LLC, a direct subsidiary of Alliance Energy, Inc., which, through subsidiaries, is engaged primarily in gas exploration. Alliance Energy New York, LLC is a member of the New York Independent System Operator (NYISO), supplying NYISO with 300 MW of power and serving over 300,000. Alliance Energy New York owns natural gas-fired generating units in Western New York with a combined capacity of approximately 220 MW including facilities in Batavia, Ogdensburg and Sherrill. Following a late 2006 test burn of 250,000 gallons of clean bio diesel in the Ogdensburg power plant while serving the steam needs of a New York State prison and mental health facility, Alliance is converting that natural gas burning power plant to Bio Mass in the third quarter of 2007. In addition, Alliance will test burn bio fuels and biomass at its other plants in New York State. Alliance owns and operates a 12-mile natural gas pipeline serving western Rochester, New York to the Batavia, New York area.
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. Such statements are those concerning the contemplated transaction and strategic plans, expectations and objectives for future operations. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the companies expect, believe or anticipate will or may occur in the future are forward-looking statements. This includes completion of the proposed transaction, realization of expected synergies from the transaction, future commodity prices, future financial performance, and other matters. These statements are based on certain assumptions made by the companies based on their experience and perception of historical trends, current conditions, expected future developments and other factors they believe are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the companies. These risks include, but are not limited to, market conditions, economic conditions, environmental risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.
###