PRINCETON, N.J.--(BUSINESS WIRE)--June 8, 2006--NRG Energy, Inc. (NYSE:NRG) announced an agreement to sell its 37.5% equity interest in the Gladstone power station, and its associated 100% owned NRG Gladstone Operating Services company, to Transfield Services, an Australia-based provider of operations, maintenance, ownership and asset management services. The Gladstone announcement comes a week after NRG's announcement that the Company plans to sell the Flinders power station to Babcock and Brown.

The Gladstone purchase price is AU $239 million (approximately US $179 million), subject to customary purchase price adjustments, plus the assumption of NRG's share of Gladstone's unconsolidated debt and cash amounting to AU $77 million (approximately US $58 million), and AU $35 million (approximately US $26 million), respectively. After tax cash proceeds are expected to be in excess of AU $234 million (approximately US $176 million).

"As a key player in the competitive U.S. wholesale generation market, the sale of Gladstone and Flinders is in line with our strategic goals, both short- and long-term," said David Crane, NRG President and Chief Executive Officer. "I want to thank our Australian staff for their years of dedicated service to NRG operating and maintaining these high quality assets."

Located in Queensland, Australia, Gladstone power station is a coal-fueled power station with 1,680 gross megawatts (MW) of generating capacity. The sale of Gladstone is subject to customary approvals, as well as consents from the other owners of the project, and is expected to close during the third quarter.

About NRG Energy

NRG Energy, Inc. owns and operates a diverse portfolio of power-generating facilities, primarily in Texas and in the Northeast, South Central and Western regions of the United States. Its operations include baseload, intermediate, peaking, and cogeneration facilities, thermal energy production and energy resource recovery facilities. NRG also has ownership interests in generating facilities in Brazil and Germany.

About Transfield Services

Transfield Services is a leading provider of operations, maintenance, ownership and asset management services across 11 industry sectors, with more than 130 contracts in Australia, New Zealand, South East Asia and the Gulf Region. The company has annual revenue of over $1.5 billion and more than 14,000 employees. It is publicly listed and included in the S&P/ASX 200 index.

Certain statements included in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements above include the expected timing of the transaction, and the expected pre-tax gains from the transaction. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct. Factors that could cause NRG's actual results to differ materially from those contemplated in the forward-looking statements above include, among others, the timing and availability of consents from NRG's partners in the Gladstone project, and final decisions regarding the accounting treatment of the transaction.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause NRG's actual results to differ materially from those contemplated in the forward-looking statements included in this news release should not be construed as exhaustive. For more information regarding risks and uncertainties that may affect NRG's future results, review NRG's filings with the Securities and Exchange Commission at www.sec.gov.

    CONTACT: NRG Energy, Inc.
             Media Relations:
             Meredith Moore, 609-524-4522
             or
             Lori Neuman, 609-524-4525
             or
             Investor Relations:
             Nahla Azmy, 609-524-4526
             or
             Kevin Kelly, 609-524-4527
             or
             Jonathan Baylor, 609-524-4528

    SOURCE: NRG Energy, Inc.