Bangkok--10 Sep--Glow Energy Glow’s 65% subsidiary, GHECO-One, has on 10 September 2008 signed a 25-year, 660 MW, Power Purchase Agreement (PPA) with EGAT. The project will diversify the fuel supply to Thailand and offer EGAT very competitive electricity prices. It will also be environmentally and socially sustainable and has obtained EIA approval on 15 May 2008 The new 660 MW IPP project, together with Glow Energy’s 382 MW cogeneration expansion and 115 MW CFB expansion, both currently under construction and all located in Map Ta Phut, will have total capital expenditure of around 1,800 million USD. This value creating growth will increase Glow Group’s production capacity by more than 50% by the end of 2011 Aside from having signed this 660 MW IPP PPA with EGAT, we have this year in our Cogeneration business signed contracts for up to 152 MW of power supply and 378 tons per hour of steam supply with various large Petrochemical customers, in addition to the 74 MW SPP contract already awarded by EGAT earlier this year. GHECO-One has today signed the PPA with EGAT for the country’s second coal-fired IPP power plant. The project, which began construction preparation in July, is scheduled to have its start of commercial operation in November 2011. The total project cost is estimated at USD1,150 million, around USD 800 million of which will be financed by project finance debt and the remaining equity will be shared 65% by Glow Group and 35% by Hemaraj. The Korean contractor, Doosan Heavy Industries and Construction, is the main Contractor for this project. The IPP project will benefit Thailand by providing higher fuel diversification and lower electricity prices. It will also benefit local communities, who will see NOx and SO2 emissions reduced. The project is environmentally friendly, using highly sophisticated supercritical technology with advanced emission control system and high fuel efficiency. Glow will also invest in technology to reduce the emission levels from existing plants, so that the total NOx and SO2 emission levels (both actual and maximum) in Map Ta Phut will be lower than current levels after the new IPP becomes operational. The net result will be an improvement in the overall air quality in Map Ta Phut. The project will also enter into a contractual commitment to contribute additional funds, around 100 million Thai Baht per year, to support local community development. The fund will contribute to education, health care, employment, improvements in the standard of living, and social development for the communities surrounding the estates. Mr. Peter Termote, CEO of the Glow Group said, “The new coal-fired IPP will help to reduce Thailand’s dependency on imported LNG for its future energy supply, and offers electricity at an attractive price to EGAT. This IPP expansion is part of a larger business expansion of Glow who will use over the period 2008-2011 more than 900 million USD of its own funds into 3 profitable expansions. This has indeed been a very successful period for Glow. Starting from 2010 onwards, Glow results will be substantially increased by new capacity and by end 2011, Glow will be a much bigger company than today, both in terms of size and earnings.” Mr Suthiwong Kongsiri, CFO of the Glow Group, added “220 MUSD will be invested in the GHECO-One IPP project, the remainder coming from partners and project lenders. An additional 720 MUSD of own funds will be used in the CFB 3 and Phase 5 cogeneration expansions. All this funding comes from our operating cash flows and corporate funding and should not impact the usual dividend payout that the investors can normally expect from the company.” For further details please contact Suthiwong Kongsiri Glow Energy Plc. Tel. 02-670-1500-1 Email : [email protected]