SAN JOSE, Calif., March 10 /PRNewswire-FirstCall/ -- Calpine Construction Finance Company, L.P. ("CCFC") and CCFC Finance Corp. ("Finance Corp." and together with CCFC, the "Company") announced today that, in connection with their previously announced consent solicitation for waivers from holders under the indenture (the "Indenture") governing their $415,000,000 principal amount of Second Priority Senior Secured Floating Rate Notes due 2011 (the "Notes") and CCFC's waiver request from the lenders under the credit and guarantee agreement (the "Credit Agreement") governing its $385,000,000 First Priority Senior Secured Institutional Term Loans due 2009 (the "Term Loans"), it has amended the terms and conditions of the consent solicitation and the waiver request to include a consent payment and requests for consents to amendments to the Indenture and the Credit Agreement to include a new event of default provision.

Details of the consent payments and the event of default can be found in the Company's amended and restated Solicitation Letter, dated March 10, 2006 ("Solicitation Letter") and the related Consent Form ("Consent Form") with respect to the Indenture and CCFC's amended and restated waiver request from the lenders under the Credit Agreement, also dated March 10, 2006 ("Waiver Request Letter"). Consummation of the consent solicitation and the waiver request are subject to the satisfaction or waiver of various conditions, as described in the Solicitation Letter, the Consent Form and the Waiver Request Letter. The Company and CCFC have reserved the right to amend, extend or terminate the consent solicitation and the waiver request at any time.

The Company has retained Merrill Lynch & Co. to serve as Solicitation Agent for the consent solicitation under the Indenture. Global Bondholder Services Corporation will act as Information Agent in connection with the consent solicitation. Questions concerning the terms of the consent solicitation, and requests for copies of the Solicitation Letter, the Consent Form or other related documents should be directed to the Information Agent by calling 866-736-2200. Wilmington Trust Company will act as Tabulation Agent. Requests for assistance in delivering consents should be directed to the Tabulation Agent at 302-636-6181.

Goldman Sachs Credit Partners L.P. is the administrative agent under the Credit Agreement. The administrative agent will be contacting lenders under the Credit Agreement in connection with CCFC's request for the waiver.

This announcement is for informational purposes only. It does not constitute an offer to purchase, a solicitation of an offer to purchase, or a solicitation of consents.

About the Company

CCFC is an indirect subsidiary of Calpine Corporation. It was formed to develop, own and operate power generating facilities and currently owns and operates six core natural gas-fired combined-cycle facilities, which have a combined estimated peak capacity of 3,667 megawatts and a combined estimated nominal capacity of 3,347 megawatts. The facilities are (1) the 594-megawatt Brazos Valley project in Thompsons, Texas; (2) the 642-megawatt Hermiston project near Hermiston, Oregon; (3) the 751-megawatt Magic Valley project near Edinburg, Texas; (4) the 609-megawatt Osprey project near Auburndale, Florida; (5) the 543-megawatt Sutter project near Yuba City, California; and (6) the 528-megawatt Westbrook project near Westbrook, Maine. CCFC Finance Corp. is an indirect subsidiary of Calpine Corporation that was formed solely to act as co-issuer of the Notes. A major power company, Calpine Corporation supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine Corporation owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Calpine Corporation was founded in 1984.

This news release discusses certain matters that may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or current expectations of Calpine Corporation and its subsidiaries ("Calpine") and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results such as, but not limited to: (i) Calpine's ability to continue as a going concern; (ii) the ability of Calpine to operate pursuant to the terms of the debtor-in-possession facility; (iii) Calpine's ability to obtain court approval with respect to motions in the Chapter 11 proceeding prosecuted by it from time to time; (iv) the ability of Calpine to develop, execute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; (v) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for Calpine to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; (vi) the ability of Calpine to obtain and maintain normal terms with vendors and service providers; (vii) Calpine's ability to maintain contracts that are critical to its operations; (viii) the potential adverse impact of the Chapter 11 cases on Calpine's liquidity or results of operations; (ix) the ability of Calpine to fund and execute its business plan;(x) the ability of Calpine to attract, motivate and/or retain key executives and associates; (xi) the ability of Calpine to attract and retain customers and (xii) other risks identified from time-to-time in Calpine's reports and registration statements filed with the SEC, including the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2004, and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2005, which can also be found on Calpine's website at www.calpine.com. All information set forth in this news release is as of today's date, and Calpine undertakes no duty to update this information.

SOURCE  Calpine Corporation
    -0-                             03/10/2006
    /CONTACT:  media, Katherine Potter, +1-408-792-1168, or
kpotter@calpine.com, or investors, Karen Bunton, +1-408-792-1121, or
karenb@calpine.com, both of Calpine/
    /Web site:  http://www.calpine.com /
    (CPNLQ)

CO:  Calpine Corporation; Calpine Construction Finance Company, L.P.; CCFC
     Finance Corp.
ST:  California
IN:  OIL UTI
SU:  FNC

GM-JB
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1474 03/10/2006 08:00 EST http://www.prnewswire.com