June 19, 2001

Cheng Power Systems Receives Funds to Accelerate Commercialization of New Power Technologies.

Cheng Power Systems, Inc. (Cheng) closed a $9 million second round investment with lead investors Mirant Corp. of Atlanta, GA and Saw Mill Capital LLC of Briarcliff Manor, NY. The funds will be used to accelerate the commercialization of existing technologies and for further development of new products.

Bill Colston, president and chief executive officer of Cheng said, "We are very happy to have Mirant and Saw Mill Capital join our existing group of investors and strategic partners that include Calpine Corporation and Hartford Steam Boiler Engineering Finance Corporation. They understand our businesses, bring significant power industry and financial experience, and are fully committed to helping us achieve long-term commercial success." "We believe our investment in Cheng will provide for an attractive return on capital and offer access to emerging technologies which will directly improve our business and the environments where we operate," said Bill Harper, a principal in Mirant's venture capital group. "The Cheng products in development would make it possible for Mirant to produce cleaner and more efficient power as we pursue our goal of expanding worldwide operations to 50,000 megawatts by 2005."

"We are very excited about our investment in Cheng Power Systems," said Howard Unger, managing partner at Saw Mill Capital. "The Cheng Boost and Cheng Clean products for gas fired power plants address critical issues facing the power industry -- the need for more electricity, generated efficiently, and cleanly. Cheng will initially focus on upgrading existing power plants, an approach that significantly shortens the time to bring additional capacity to market," added Unger.

Messrs. Harper and Unger have joined Cheng Power's board of directors. Cheng Power Systems, a power technology company, develops proprietary systems that improve output, efficiency, reliability and emissions of power generation.

Cheng's patented technologies include:

-- Cheng Boost that uses sophisticated, electronically controlled massive steam injection into gas turbines to achieve higher power output and efficiency.

-- Cheng Clean that uses a homogenized mixture of steam and fuel to significantly lower the emissions of NOx and CO from gas fired power plants.

Cheng is also developing the Universal Frequency Generator, a patented technology that allows the mechanical input speed to function independently of the frequency produced by an electric generator.

Mirant (NYSE: MIR) is a global competitive energy company with a leading position in both power generation and energy risk management and marketing. With an integrated business model, Mirant develops, constructs, owns and operates power plants and sells wholesale electricity, natural gas and other energy commodities. Headquartered in Atlanta, with 10,000 employees worldwide, Mirant has extensive operations in North America, Europe and Asia. Mirant owns or controls more than 20,000 megawatts of electric generating capacity around the world, with another 9,000 megawatts of announced development. In North America, Mirant controls an extensive natural gas asset base, including transportation, storage and access to approximately 3.7 billion cubic feet per day of natural gas production

Saw Mill Capital is a private equity investment firm based in Westchester, N.Y., focused on investing in manufacturing, services and technology companies that support the global power industry.