Ogden enters power market in Thailand

The Ogden Energy Group has executed three definitive agreements marking the company's entrance into the power market in Thailand.
These transactions represent Ogden's acquisition of interests in 2 power generation projects nearing completion and an operation and maintenance company.

Under these arrangements, Ogden will take a 74 % ownership interest in Sahacogen (Chonburi), which in turn owns a 122 MW gas-fired combined-cycle power generation facility located in an industrial park in Chonburi. The remaining 26 % will be owned by the Saha group, a major Thai industrial conglomerate and the original promoter of the industrial park and thermal facility.
Ogden will also take a 25 % ownership interest in Rojana Power, which owns a 122 MW gas-fired combined-cycle power generation facility located in a large industrial park in Ayutthya. The remaining portion of the project will be owned by the Rojana Group, a Thai real estate group and the original promoter of the park and the facility, and by other local and international investors.

These transactions are expected to close prior to the March 1999 commercial start-up of each facility. Both facilities will sell power to the industries located in the their respective industrial park and to the national utility. These two acquisitions will bring the company's world-wide generating capacity to over 2,300 MW.

The final acquisition represents a 90 % ownership interest in Operational Energy Group (Operational), a company providing operation and maintenance (O&M) services throughout Thailand.
Operational will provide O&M services for the two above-mentioned projects, in addition to one other. Ogden plans to expand the company's operations in Thailand and throughout neighbouring countries. Operational will also augment Ogden's O&M capabilities in support of its Asian power generation assets.

R. Richard Ablon, Chairman and CEO of Ogden Corporation said, "As with our other power projects in Asia, this opportunity gives Ogden near-term earnings impact, while providing an excellent operating base for the region. Over the last three months, Ogden has announced a number of projects in Asia that greatly increased our regional presence."
"We are taking a targeted path into the Thai market and are confident in the value that will result from these acquisitions," said Scott G. Mackin, President of Ogden Energy Group. "These facilities are low-cost providers of power to the market, with excellent off-takers and local partners, high quality equipment and significant growth potential."