Power plant of STEAG's subsidiary ISKEN dedicated by German Chancellor

1.5 billion US dollar power plant is the largest foreign directinvestment in Turkey

Iskenderun/Essen (ots/PROTEXT) 24.2.2004 - A significant dayin the history of STEAG AG, a subsidiary of RAGAktiengesellschaft: On Tuesday (February 24, 2004), GermanChancellor Gerhard Schröder and Turkish Prime Minister RecepTayyip Erdogan jointly dedicated the hard coal-fired power plantIskenderun. The 1,210 megawatt large power plant in SoutheastTurkey had been completed in a record time of just 39 months.With an investment volume of 1.5 billion US dollar, the powerplant is not only the largest single investment ever by a Germancompany in Turkey, but also the largest foreign directinvestment in this country to date. Iskenderun will supplyenough electric power to meet about 8 percent of the Turkishelectricity demand.

"Use of the primary energy source coal will continue to benecessary for many years, because it is the energy source withthe largest resources world-wide," said Chancellor Schröder infront of thousands of guests who appeared at the power plantsite to celebrate the formal opening of the plant. At the sametime, the power plant makes a substantial contribution to theprotection of the environment, by using most modernenvironmental technology. The Turkish Prime Minister, too, wasfull of praise: A secure energy supply is the basis for dynamiceconomic growth, said Erdogan.

The Chairman of the Management Board of STEAG AG, Dr. JochenMelchior, referred to the power plant project of the company'ssubsidiary ISKEN as a "quantum leap in the company's history".Dr. Werner Müller, Chairman of STEAG's Supervisory Board alludedto the project as "a milestone in Turkish-German businessrelations".

The power plant was planned, financed with the support of aninternational banking syndicate, and built by Essen-based STEAGAG whose subsidiary ISKEN operates the plant consisting of twounits with a net capacity of 605 MW each. Every year, the plantwill convert 3.3 million tons of imported hard coal intoelectricity. The imported coal, partly supplied by RAGInternational, is transported by large ocean-going vessels intothe Bay of Iskenderun, where it is reloaded by an off-shoretransshipper onto smaller barges which finally transfer the coalto the plant's jetty. The transshipper is the world's largestfloating coal transshipment plant so far.

As many as 4,000 people worked at the large constructionsite during the past three years, about 250 found permanent,qualified employment in the power plant. More jobs were createdaround the provincial capital Adana, a metropolis with apopulation of more than 1.5 million, located about 115 km fromthe Syrian border.

Owing to its advanced environmental equipment for flue gascleaning, protection of water quality and noise protection theIskenderun power plant does not only meet the Turkishenvironmental standards but also those of the World Bank. Inaddition, the project company ISKEN operates a continuousenvironmental monitoring and environmental management program.Making use of ultra-modern technology and advanced processcontrol, the power plant achieves a high efficiency. The by-products arising from power plant operation, such as fly ash andgypsum are marketed for industrial utilization in Turkey and inthe international market.

The Iskenderun hard coal-fired power plant in facts andfigures Investment:

1.5 billion US dollar Construction period:

39 months Commercial operation:

since November 22, 2003 Installed capacity:

1,320 MW gross, 1,210 MW net Tower boiler height:

100 m each Capacity of coal yard:

800,000 tons Coal input:

3.3 million tons per year ots Original Text Service: STEAG AG Internet:http://www.presseportal.de Contact: STEAG Aktiengesellschaft Kommunikation Dr. PeterRzeznitzeck Telefon +49 (201) 801-24 27 Telefax +49 (201) 801-11 95 Internet www.steag.de E-Mail info@steag.de

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