Mirant: Plan to improve liquidity is working

ATLANTA, July 11, 2002 -- Mirant confirmed the strength of its liquidity position recently by stating that its current liquidity is approximately $1.7 billion. This includes proceeds from a recently completed $370 million convertible securities offering.

"We have been successful in executing an aggressive, disciplined plan to improve liquidity and strengthen Mirant's balance sheet," said Marce Fuller, president and chief executive officer, Mirant. "This plan is working."

Since December 2001, Mirant has undertaken a number of key initiatives:
* Paid down $1.2 billion in debt
* Completed a major organizational restructuring that cut $150 million in annualized costs
* Raised $759 million in equity
* Reduced capital expenditures for 2002 by more than 50 percent to $1.9 billion
* Raised $1.4 billion in asset sales

The company also noted that during the third quarter, 2002, it expects to meet or exceed its goal of realizing $1.6 billion through asset sales.

Mirant earned 33 cents per diluted share from operations in the first quarter, 2002, exceeding its previous guidance by 10 percent. The company also recently announced it was raising its guidance for earnings from operations in the second quarter to at least 35 cents compared to earlier- stated guidance of 30 cents. Earnings from operations are not GAAP earnings and do not include non-recurring charges such as restructuring charges or gains and losses from asset sales.

Regarding Mirant's recent convertible offering, Fuller commented, "This offering bolstered our already strong liquidity position. Given the increasingly volatile nature of the financial markets, it is crucial that companies have sufficient liquidity."

Mirant also said it intends to exercise the term-out provision in its $1.125 billion corporate revolver, thereby converting it to a one-year loan maturing in July 2003.

Added Fuller, "Although we expect the term-out to be exercised soon, we remain optimistic that we will ultimately complete the renewal of our bank revolver. Of course, we also have the flexibility to leave the current loan in place. Regardless of which course of action we take, we retain an appropriate level of liquidity and flexibility. We also have the advantage of other options. These could include selling additional assets, reducing future capital requirements related to the company's construction program, and reducing the collateral used for our marketing activities."

Mirant further noted that its auditor, KPMG, has completed a review of the company's first quarter financial statements including its major accounting policies and procedures. This review was requested by Mirant. Based on the results of the review, the company does not anticipate a restatement of its first quarter financials.

Mirant will provide additional details regarding its business performance in its regularly scheduled second quarter earnings call with analysts. This call will occur July 30. For more information, visit http://www.mirant.com.

Sponsored by FLSmidth

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