MINNEAPOLIS, June 27, 2000 (BUSINESS WIRE)--NRG Energy, Inc. (NYSE: NRG) announced that earlier today the Estonian Cabinet approved the terms under which NRG may proceed to purchase a 49-percent interest in Narva Power, which owns approximately 3,000 megawatts of oil shale-fired generation plants and a 51-percent interest in state-owned oil shale mines, Eesti Polevkivi. State-owned Eesti-Energia will retain 51-percent ownership of Narva Power.

The terms include a commitment by Narva Power to invest approximately $361 million for reconstructing and refurbishing the generation plants and making environmental improvements. NRG Energy will make an initial $65-70 million equity commitment, including a $5 million contribution to establish a social fund to help the residents of the Narva region, in which the plants are located. This represents the largest foreign investment into the Estonian economy to date.

"We have worked very hard for four years to get this point," said David H. Peterson, NRG president, chairman and chief executive officer. "This new joint venture will be a stronger power company that effectively produces electricity for the Estonian people while bringing additional economic development to the Narva region."

Narva Power's two stations, Balti and Eesti, currently supply more than 90 percent of Estonia's electricity. Narva Power will enter into a 15-year power purchase agreement with Eesti-Energia.

"We expect NRG and Narva Power's investment to make these power generating assets more competitive long term against regional alternatives," said Ronald J. Will, president of NRG Europe. "The terms of our investment, as approved by the Cabinet, will help support the long-term viability of the oil shale and electric generation industries."

NRG's purchase of a 49-percent interest in Narva Power remains subject to successful negotiation of definitive agreements.

NRG

Energy (www.nrgenergy.com) is a leading global energy company primarily engaged in the acquisition, development, construction, ownership and operation of power generation facilities. NRG owns all or a portion of 57 power generation projects with a total generating capacity of more than 23,000 MW; its net ownership interest in these projects exceeds 13,000 MW. NRG Energy's operations utilize such diverse fuel sources as natural gas, oil, coal and coal seam methane, biomass, landfill gas, and hydro, as well as refuse derived fuel.

Certain information included in this news release contains statements that are forward-looking. Such forward-looking information involves risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of NRG Energy. For more information regarding these risks and uncertainties, review NRG Energy's filings with the Securities and Exchange Commission.

Contact: NRG Energy, Inc., Minneapolis
Meredith C. Moore, Media Relations Manager
612.313.8729
e-mail: meredith.moore@nrgenergy.com
or
Dan Dokken, Executive Director, Investor Relations
612.373.5336
e-mail: dan.dokken@nrgenergy.com