Harbinger Capital Partners

January 25, 2007 18:59 ET

Harbinger Extends Take-Over Bid for Calpine Power Income Fund

CALGARY, ALBERTA--(CCNMatthews - Jan. 25, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Harbinger Capital Partners today announced that it is extending the expiry time of its take-over bid (the "Offer") made through HCP Acquisition Inc. to acquire all of the outstanding trust units of Calpine Power Income Fund (the "Fund") for Cdn. $12.25 in cash per trust unit from 9:00 p.m. (Calgary time) on January 25, 2007 to 9:00 p.m. (Calgary time) on February 5, 2007, unless further extended, varied or withdrawn. All other terms and conditions of the take-over bid remain unchanged. A formal notice of variation and extension will be delivered to unitholders as soon as practicable and will be filed on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

Harbinger also announced that the Alberta Securities Commission has scheduled a hearing to take place on February 2, 2007 to consider Harbinger's application to set aside the Fund's rights plan as well as other matters relating to the Offer.

Cautionary Statements

This news release contains forward-looking statements, which reflect the current beliefs and expectations of HCP Acquisition Inc. (the "Offeror") and Harbinger Capital Partners. These forward-looking statements are subject to risks and uncertainties. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Undue reliance should not be placed on forward-looking statements.

This announcement does not constitute or form part of any offer or invitation to purchase, otherwise acquire, subscribe for, sell, otherwise dispose of or issue, or any solicitation of any offer to sell, otherwise dispose of, issue, purchase, otherwise acquire or subscribe for, any security. The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions. The Offer is not being made to, nor will deposits be accepted from, or on behalf of, unitholders in any jurisdiction in which the making or acceptance of the Offer would not be in compliance with the laws of such jurisdiction. However, the Offeror or its agents may, in the sole discretion of the Offeror, take such action as the Offeror may deem necessary to extend the Offer to unitholders in any such jurisdiction.

This announcement contains certain information relating to the Fund and its subsidiary entities. Neither the Offeror nor Harbinger Capital Partners have had any due diligence access to the Fund or its subsidiary entities. The information in this announcement relating to the Fund and its subsidiary entities has been compiled from information included in public documents filed by the Fund only and has not been commented on or verified by the Fund, its trustees, or Harbinger Capital Partners or Offeror. The Offeror and Harbinger Capital Partners believe that they are not in possession of any material non-public financial or other information in respect of the Fund or its subsidiary entities.

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