CALENERGY ANNOUNCES S&P AND MOODY'S SENIOR DEBT RATINGS REAFFIRMED IN CONNECTION WITH PROPOSED NYSEG ACQUISITION NEW YORK, July 17 /PRNewswire-Asianet/ CalEnergy Company, Inc. (NYSE: CE; LSE, PSE) ("CalEnergy" or the "Company") announced today that both Standard & Poor's and Moody's Investors Service have affirmed their ratings on the Company's securities in connection with CalEnergy's announced proposal to acquire New York State Electric & Gas Corporation ("NYSEG"). The acquisition financing will be structured in a manner similar to the acquisition in 1996 of Northern Electric plc by CE Electric UK, for which the acquisition financing is rated investment grade. Moody's affirmed its senior debt rating of Ba2 maintaining a positive outlook of CalEnergy. Standard & Poor's affirmed the BB+ rating on CalEnergy's senior debt. David Sokol, Chairman and Chief Executive Officer, said, "These ratings announcements reflect the positive track record CalEnergy has had in financing acquisitions and implementing its long-term strategic plan to become a leading global energy services provider." CalEnergy, which manages and owns interests in over 5,000 net MW of power generation facilities in operation, construction and development worldwide, currently operates 19 generating facilities and also supplies and distributes electricity to 1.5 million customers. SOURCE CalEnergy Company, Inc. CONTACT: Patti J. McAtee, Director, Corporate Communications of CalEnergy, 402-341-4500; or Joele Frank of Abernathy MacGregor Group Inc., 212-371-5999/