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Blackstone to Increase Dynegy Offer to $5.00 Per Share in aBest and Final Offera

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^{Published in Business and Finance on Tuesday, November 16th 2010 at 11:35 GMT by Market Wire}  

NEW YORK--([ BUSINESS WIRE ])--Blackstone Capital Partners V L.P. today announced its affiliatea™s intention to increase the cash price per share under its previously announced merger agreement with Dynegy Inc. (NYSE: DYN) to $5.00 per share. This offer represents an 11.1% increase over the $4.50 per share cash price contemplated by the existing merger agreement and a 79.9% premium to Dynegya™s closing share price on August 12^th, the day prior to the announcement of the transaction.

Blackstone has notified Dynegya™s Board of Directors that this proposed $5.00 per share cash price represents Blackstonea™s best and final offer and remains subject to agreement to the terms of an amended merger agreement.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

All statements other than statements of historical fact are statements that could be deemed forward looking statements. This communication includes aforward looking statementsa that are subject to risks, uncertainties and other factors. The reader is cautioned not to rely on these forward looking statements. All forward looking statements are based on information currently available to BCP V and are qualified in their entirety by this cautionary statement. Neither BCP V nor Dynegy undertakes to update any such forward looking statements or other statements included in this communication.

WHERE YOU CAN FIND MORE INFORMATION

In connection with the Agreement and Plan of Merger, dated as of August 13, 2010, providing for the acquisition of Dynegy by Denali Parent Inc., an affiliate of BCP V, Dynegy filed a definitive proxy statement with the SEC on October 4, 2010 (the aProxy Statementa) and commenced mailing the definitive proxy statement and form of proxy to the stockholders of Dynegy. BEFORE MAKING ANY VOTING DECISION, DYNEGYa™S STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT REGARDING THE TRANSACTION CAREFULLY AND IN ITS ENTIRETY BECAUSE IT CONTAINS IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Dynegya™s stockholders are able to obtain, without charge, a copy of the definitive proxy statement and other relevant documents filed with the SEC from the SECa™s website at [ http://www.sec.gov ]. Dynegya™s stockholders are also able to obtain, without charge, a copy of the definitive proxy statement and other relevant documents by directing a request by mail or telephone to Dynegy Inc., Attn: Corporate Secretary, 1000 Louisiana Street, Suite 5800, Houston, Texas 77002, telephone: (713) 507-6400, or from the Dynegya™s website, [ http://www.dynegy.com ].

PARTICIPANTS IN THE SOLICITATION

BCP V, Denali Parent Inc. and Denali Merger Sub Inc. (collectively aBlackstonea) and certain affiliates and representatives of Blackstone may be deemed to be participants in the solicitation of proxies from the stockholders of Dynegy in connection with the transactions and the Proxy Statement. Information concerning the interests of Blackstone and its affiliates and representatives in the solicitation is set forth in the Proxy Statement.

ABOUT BLACKSTONE

The Blackstone Group is one of the worlda™s leading investment and advisory firms. Its alternative asset management businesses include the management of private equity funds, real estate funds, hedge funds, credit-oriented funds, collateralized loan obligation vehicles (CLOs) and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services. Further information is available at [ http://www.blackstone.com ].