Date: Thu, 20 Nov 1997 19:15:52 GMT Server: NCSA/1.5.2 Last-modified: Mon, 03 Mar 1997 22:37:15 GMT Content-type: text/html Content-length: 4384 Zeigler EnerZ Subsidiary to Compete in Deregulated Energy Marketplace

FOR IMMEDIATE RELEASE September 26, 1996


Zeigler EnerZ Subsidiary to Compete in Deregulated Energy Marketplace

Fairview Heights, Illinois, September 26, 1996 ­ Zeigler Coal Holding Company (NYSE: ZEI) President and Chief Executive Officer Chand B. Vyas today announced the launch of a new subsidiary, EnerZ Corporation, to take advantage of emerging market opportunities growing out of utility deregulation.

EnerZ Corporation has filed an application with the Federal Energy Regulatory Commission (FERC) for status as a wholesale power marketer. The company expects to receive its approval from FERC later this fall, and to initiate business transactions shortly thereafter. EnerZ, a Delaware corporation, is leasing office space in the New York area.

According to Vyas, "The chain of economic value for electricity includes a number of core activities: fuel, transportation, clean air compliance measures, generation, transmission and marketing. We already participate along a number of these links, and EnerZ provides us additional growth opportunities to leverage off of our existing assets and expand our customer relationships."

Vyas said Zeigler is pleased to have hired Tayeb Tahir as president of EnerZ Corporation. Tahir brings to EnerZ extensive experience in the power and natural gas markets and skills in strategic integration of information technology with the energy industry. Tahir most recently served as a consultant to utilities and other energy companies, with an emphasis on deregulation growth strategies. He has a Master's Degree in Gas Technology from the Illinois Institute of Technology and an MBA from New York University.

"Because Zeigler coal annually fuels more than 50 billion kilowatt hours of power in the United States, or nearly 2 percent of all domestic electricity, Zeigler has been well-positioned to evaluate trends and opportunities within the electric utility industry," said Vyas. "And we made it clear earlier this year that we are trading in our front-row seat for a place on the playing field. EnerZ Corporation is one more manifestation of this strategy."

The Zeigler family of companies is among the largest coal producers and marketers in the United States, and controls more than 1.3 billion tons of economically recoverable coal reserves, including 1 billion tons of low sulfur coal. Zeigler subsidiaries currently operate underground and surface coal mining complexes in Illinois, Kentucky, Ohio, West Virginia and Wyoming, which mine primarily steam coal for electricity generation. Zeigler subsidiaries also operate two East Coast import/export terminals and the ENCOAL clean coal technology corporation. And a Zeigler affiliate has a joint bid with NRG Energy pending to purchase out of bankruptcy the non-nuclear assets of Louisiana-based Cajun Electric Power Cooperative.

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