Energy Investors Funds Closes Seventh Fund With US$1.35 Billion

Energy Investors Funds Closes Seventh Fund With US$1.35 Billion

July 10, 2007

    NEW YORK, July 9 /Xinhua-PRNewswire/ -- Energy
Investors Funds ("EIF"), an established private
equity fund manager that invests in the energy and electric
power sector, today announced that it has successfully
closed the firm's seventh institutional fund, the United
States Power Fund III, L.P. with US$1.35 billion in
commitments, exceeding the $1 billion target established
for the fund.  

    Investors in US Power Fund III include ABP Investments,
Contra Costa County Employees Retirement Association, Howard
Hughes Medical Institute, John Hancock Life Insurance
Company, Mayo Clinic, New York Life Investment Management,
and University of Toronto Endowment Fund and Pension Plan,
in addition to other corporate and public pension funds,
funds of funds, endowments and foundations, insurance
companies, banks and financial institutions, and family
offices.  The global investor base represents the U.S.,
Canada, Europe and Australia, with 43 investors in total. 

    "We had a tremendous response from the investor
community for US Power Fund III," said John Buehler,
Energy Investors Funds Managing Partner.  "The power
market in the United States is still extremely vibrant and
investors responded to our experienced team and 20-year
track record as an innovative private equity investor in
this sector."

    US Power Fund III, EIF's largest fund to date, will
continue the firm's strategy of acquiring U.S. power and
energy generation and transmission assets with long-term
off-take contracts.  The fund seeks to maximize returns to,
and achieve liquidity for, its investors through regular
cash distributions and proceeds from the sale of assets. 
This investment strategy has remained consistent throughout
the firm's history.  The firm relies primarily on its own
sourcing for deals, rather than participating in auctions.

    "Our investment philosophy is as relevant today as
any time in our history due to the rising energy costs and
increased demand for electricity, which calls for the
construction of efficient, low-emission power assets,"
said Herb Magid, Energy Investors Funds Managing Partner. 
"We will continue to invest across the spectrum of
power assets, including assets that are in the development
stage as well as facilities that are under construction or
already in operation to create a portfolio of
geographically and technologically diversified
assets."

    "Our deal pipeline remains strong and is growing
due to the increased need for utilities and development
companies to seek outside financial partners like EIF to
help build assets," said Terry Darby, Energy Investors
Funds Managing Partner.  "As the country's power
infrastructure ages, and recent energy policy changes
nationwide call for the development of cleaner power
plants, we should continue to see robust opportunities to
put capital to work for our investors."

    US Power Fund III has already made an investment in the
Green Line development project.

    Bingham McCutchen served as legal advisor.

    About Energy Investors Funds 

    Energy Investors Funds was founded in 1987 as the first
private equity fund manager dedicated exclusively to the
independent power and electric utility industry.  Its
consistent, proven investment strategy is to create
geographically and technologically diversified portfolios
of electric power-related assets that provide superior
risk-adjusted equity returns with current cash flow and
capital appreciation.  As investment managers Energy
Investors Funds seeks to mitigate commodity risk (fuel and
electricity) by focusing primarily on acquiring power
assets with long-term off-take contracts.  Energy Investors
Funds has mobilized over US$3.3 billion in capital, and
currently manages six private equity funds from its offices
in Boston, New York, and San Francisco.  These funds have
made over 90 diversified investments with a combined
underlying asset value exceeding US$5 billion.  For more
information visit http://www.eif.com .



    For more information, please contact:

     Alex J. Stockham 
     Rubenstein Associates
     Tel:   [phone]
     Email: [e-mail]