Calpine Authorizes Release of Remaining Reserve Shares, Fulfills Remaining Bankruptcy Obligations

Calpine Corporation CPN, which emerged from bankruptcy in January 2008, today announced that it has authorized the release of approximately 19.8 million shares of Calpine common stock from reserves that had previously been set aside to satisfy bankruptcy claims that were not resolved at the date of emergence. This release represents the full and final distribution of shares from the reserve account, completing the implementation of the Company's confirmed Plan of Reorganization. “With this distribution, we will have fully resolved all claims associated with our bankruptcy,” said Zamir Rauf, Calpine's Chief Financial Officer. “We are pleased to bring closure to this issue, now focusing the investing community's attention on the positive outlook we have for Calpine's future instead of technical matters from the past.” Shares held in the reserve were included in the Company's 486 million weighted average shares outstanding as of June 30, 2011, and distribution of these shares does not represent the issuance of new or additional equity. The release of reserve shares will have no impact on the Company's earnings or cash flow. The timing of when shares will actually be made available to claimants is dependent upon processes to be performed by the Company's transfer agent, which are expected to be complete on or before August 24, 2011. Furthermore, certain of the reserve share distributions will be made to indenture trustees on behalf of their ultimate owners. Such owners should contact their respective trustee with any questions regarding the receipt of their shares, including those concerning timing and the amount of their ultimate distribution.