Press Release

Starwood and Tyr Announce Purchase of California Generating Assets

May 26, 2006 - Starwood Energy Group Global, LLC Tyr Capital, LLC announced the closing of their purchase of CalPeak Power, LLC from United Technologies Corporation (NYSE: UTX). Starwood Energy and Tyr are providing approximately 80% and 20% of the equity capital respectively. CalPeak, headquartered in San Diego, California, is the owner of entities holding five natural gas-fired, simple-cycle generating stations, each with a capacity of approximately 50 megawatts. The purchase price was not disclosed.

Three of the five projects are located in the service territory of San Diego Gas & Electric Company and two are located in the service territory of Pacific Gas and Electric Company. All of the projects sell capacity and energy to the California Department of Water Resources under long term power purchase agreements. No changes to CalPeak’s San Diego headquarters or its existing staff are planned. The projects will be managed by an affiliate of Tyr.

Project debt was provided by Sumitomo Mitsui Banking Corporation, and the entire loan was swapped into a fixed rate instrument by SMBC Capital Markets, the Capital Markets, subsidiary of Sumitomo Mitsui Financial Group, the parent of SMBC. Sumitomo Mitsui Banking Corp. (www.smbc.co.jp), headquartered in Tokyo, Japan, is the core commercial banking unit of Sumitomo Mitsui Financial Group. SMFG is a global organization and one of the world’s largest banks in asset size which offers a broad range of financial services including commercial banking, interest rate swaps and currency derivatives, leasing, securities, credit card, investment banking, securitization, and venture capital.

Starwood Energy, based in Greenwich, Connecticut, is an affiliate of Starwood Capital Group Global, LLC (www.starwoodcapital.com). Since 1991, Starwood Capital has invested over $5 billion of equity capital. Starwood Energy completed its inaugural investment in July 2005 to finance the construction of the Neptune Regional Transmission System, a 660 megawatt undersea power cable connecting Long Island to New Jersey. Starwood Energy is also in the process of acquiring and/or developing another transmission line and several power plants including an expansion plant at one of the CalPeak sites where Starwood Energy recently executed a 15 year power purchase agreement with Pacific Gas and Electric Company. Starwood Energy has also entered into a development joint venture with a division of the General Electric Corporation to pursue North American generation development opportunities.

Tyr Capital, LLC, headquartered in Overland Park, Kansas, is owned by Tyr Energy, Inc. (www.tyrenergy.com), Chubu Electric Power Company USA Inc., a U. S. subsidiary of the Japanese electric utility, Chubu Electric Power Co., Inc., and I-Power Investment, Inc., a U.S. subsidiary of ITOCHU Corporation. During the last eighteen months, Tyr Capital has originated and closed minority investments in two U.S. power projects, the Lincoln Generating facility located near Chicago, Illinois and the Green Country Energy facility located near Tulsa, Oklahoma. This will be Tyr Capital’s third investment. Upon closing its investment in CalPeak, these projects have approximately 1,700 megawatts of total generating capacity and an enterprise value of approximately $800 million. An affiliate, Tyr Energy, provides asset management services to these projects. United Technologies Corp. (www.utc.com), based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and building industries.

Fieldstone Private Capital Group, Inc. acted as financial advisor and placement agent to Tyr and Starwood in connection with the acquisition and the debt financing. The Fieldstone team was led by Manfred Ernst and supported by Brooks Kaufman and Anastasia Pozdniakova.