Calpine Power Income Fund
TSX : CF.UN

Calpine Power Income Fund

August 21, 2006 20:21 ET

Calpine Power Income Fund Announces Consent to Unitholder Rights Plan

CALGARY, ALBERTA--(CCNMatthews - Aug. 21, 2006) - Calpine Power Income Fund ("CPIF") (TSX:CF.UN) announces that the TSX has consented to the unitholder rights plan (the "Plan") adopted by the Fund. The Plan was adopted on August 12, 2006 subject to TSX acceptance.

The Plan is designed to ensure that all of CPIF's unitholders (the "Unitholders") are treated fairly in the event that a take-over bid is made for the trust units of CPIF and that sufficient time and rights are available for CPIF's board of trustees and all Unitholders to fully evaluate any offer and pursue alternatives to maximize Unitholder value.

CPIF's board of trustees intends to schedule a special meeting of Unitholders no later than 6 months from the date of the Plan's adoption, in order to obtain Unitholder approval for the Plan. In the event that the Plan does not receive approval from the Unitholders, the rights issued pursuant to the Plan will be redeemed immediately at $0.0001 per right and the Plan will terminate. Provided the Plan receives the required Unitholder approval, the Plan will expire at the earlier of the Termination Time (as such term is defined in the Plan) and the termination of the annual meeting of the Unitholders in the year 2009.

The Plan was not adopted in response to, or in anticipation of, any specific effort to acquire control of CPIF.

Disclaimer

This press release has been prepared by the Fund (but not the Manager) and the Manager has not participated in the preparation or adoption of the Plan.

CPIF is an unincorporated open-ended trust that invests in electrical power assets. CPIF indirectly owns interests in power generating facilities in British Columbia, Alberta and California. In addition, CPIF owns a participating loan interest in a power plant in Ontario and a promissory note issued by Calpine Canada Power Ltd. CPIF is managed by Calpine Canada Power Ltd., which is headquartered in Calgary, Alberta.

The trust units of CPIF are listed on the Toronto Stock Exchange under the symbol CF.UN. For further information on CPIF, please visit its website at www.calpinepif.com.


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