Vogt Power to Supply Heat Recovery Units to Argentinean Electricity Company

July 22, 2008

Danvers, MA – Vogt Power International Inc. (VPI), located in Louisville, KY, a subsidiary of Babcock Power Inc., based in Danvers, MA, announced that it recently received a contract to supply Heat Recovery Steam Generators (HRSG) to the Isolux Corsán Group for Pampa Holding’s Loma de la Lata Plant in the Patagonian Province of Neuquen in Argentina.

Vogt Power will design, manufacture and deliver three, two pressure level, natural circulation HRSGs to be installed behind General Electric Frame 9E gas turbines. The combined cycle systems are being furnished to increase the generation capacity at the Loma de la Lata plant to 545 megawatts. The contract is valued in excess of twenty-five million USD.

“We continue to be successful in a growing South American market,” said Mike LeClair, President of Vogt Power International. “We are pleased to have been selected by the Isolux Corsán Group, one of the top global engineering and construction firms, and look forward to the possibility of working with them again as we continue our international expansion.”

The Isolux Corsán Group is a premier unlisted Spanish engineering, construction, concessions, services and real estate development group. Their strong presence in Spain is complemented by their international experience in more than 32 countries around the world.

Pampa Holding S.A. is the largest fully integrated electricity company in Argentina. Through their subsidiaries, they are engaged in the generation, transmission and distribution of electricity in Argentina.

Babcock Power Inc. (www.babcockpower.com) is one of the world’s leading suppliers of technology, equipment and services to the power generation industry. Babcock Power designs, manufactures and services heat recovery steam generators through its Vogt Power International subsidiary located in Louisville, KY; provides heat exchangers and after market services, including moisture separator reheaters, steam surface condensers and feedwater heaters for fossil-fired and nuclear plants through its Thermal Engineering International (USA) Inc. subsidiary located in Santa Fe Springs, CA; and provides new steam generators, environmental solutions (including SCRs, flue gas scrubbers and mercury removal systems), and a complete portfolio of after market solutions to the electric utility and waste-to-energy industries for any OEM’s boiler through its subsidiaries located in Worcester, MA.