Illinois Power Generating Company Restructuring Transaction Launched

Dynegy Inc. (Dynegy) (NYSE: DYN) and Illinois Power Generating Company (Genco), an indirect, wholly owned subsidiary of Dynegy, launched a restructuring transaction today with respect to Genco's outstanding indebtedness (the Restructuring), consisting of either (a) an out-of-court offer to exchange (the Exchange Offer) Genco's outstanding 7.00% Senior Notes, Series H, due 2018, 6.30% Senior Notes, Series I, due 2020 and 7.95% Senior Notes, Series F, due 2032 (collectively, the Genco Notes) for up to (i) $210.0 million aggregate principal amount of new 7-year Senior Notes of Dynegy (the Dynegy Notes), (ii) 10 million new warrants of Dynegy (the Dynegy Warrants and, together with the Dynegy Notes, the Dynegy Securities) and (iii) $130.0 million in cash (subject to reductions for interest payments, the Cash Consideration and, together with the Dynegy Securities, the Exchange Consideration) and solicitation of consents (Indenture Consents) on behalf of Genco to proposed amendments to the indenture governing the Genco Notes (the Indenture Consent Solicitation) or (b) in the event that the conditions to the Exchange Offer are not satisfied or waived, an in-court restructuring of Genco pursuant to a prepackaged plan of reorganization of Genco (the Plan), the votes for which are being solicited concurrently with the Exchange Offer (the Plan Solicitation).

The Restructuring reflects the terms of a restructuring support agreement (the Support Agreement) among Dynegy, Genco, certain of their affiliates and Eligible Holders (as defined below) of 69.9% in aggregate principal amount of the outstanding Genco Notes (the Supporting Noteholders). Pursuant to the Support Agreement, the Supporting Noteholders have agreed, subject to the terms and conditions contained therein, among other things, to (1) support and take all actions reasonably necessary to achieve the Restructuring, including by tendering (and not withdrawing) their Genco Notes in the Exchange Offer, consenting in the Indenture Consent Solicitation and voting in favor of the Plan; (2) not support any other plan or restructuring transaction or take any other action that is inconsistent with, or would reasonably be expected to impede, the Restructuring; and (3) not direct the trustee under the indenture governing the Genco Notes to take any action inconsistent with the Supporting Noteholders' obligations under the Support Agreement. Dynegy and Genco may not modify certain terms of the Exchange Offer, including increasing the Minimum Participation Threshold (as defined below), or the Plan without the consent of some or all of the Supporting Noteholders.

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