ISDA®

INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION

NEWS RELEASE

For Immediate Release Monday, January 9, 2006

For More Information, Please Contact:

Louise Marshall, ISDA New York: (212) 901-6000; lmarshall@isda.org

ISDA PUBLISHES 2006 CALPINE CDS PROTOCOL

NEW YORK, Monday, January 9, 2006 – The International Swaps and Derivatives Association (ISDA) today announced its publication of a protocol created to facilitate settlement of credit derivative trades involving Calpine Corporation. Calpine, a U.S. company that filed for bankruptcy on December 20, 2005, is a power producer included in various credit derivative indices, including those published by Dow Jones CDX and TRAC-X.

The 2006 Calpine CDS Protocol offers market participants an efficient way to settle trades on credit derivative indices that include Calpine Corp. The Protocol enables institutions to amend their documentation for such index trades from physical to cash settlement and to participate in an auction, scheduled for January 17, 2006, which will determine the final price for certain Calpine bonds. Markit and Creditex will administer the auction.

In addition, while single name trades are not part of the auction process, adherents to the Calpine Protocol agree that the 6% Contingent Convertible Notes due 2014 are deemed to be Deliverable Obligations for single name trades, while the 7.75% Contingent Convertible Notes due 2015 will not be deemed to be Deliverable Obligations for single name trades. A full schedule of Deliverable Obligations subject to the auction is available at ISDA’s website (www.isda.org).

“The Protocol mechanism continues to be the most effective and efficient solution for settling high volume credit derivative index trades,” said Robert Pickel, Chief Executive Officer and Executive Director, ISDA. “It helps to facilitate a smoother settlement process and reflects ISDA’s on-going success in improving the post-trade environment for privately negotiated derivatives.”

With the 2006 Calpine CDS Protocol, ISDA enables parties to amend credit derivative index documents on a multilateral basis rather than through one-on-one negotiations between all counterparties. In addition to greater efficiency, time and cost savings, using the Protocol will provide enhanced legal certainty.

The Protocol is open to ISDA members and non-members alike. The adherence period for the Protocol is January 9 to January 12, 2006. The text of the Protocol and form of adherence letter, guidance on the mechanics of the Protocol, answers to frequently asked questions and details on adherents, are all available at www.isda.org. Details on the auction are included in the Protocol.

About ISDA
ISDA is the global trade association representing leading participants in the privately negotiated derivatives industry. ISDA was chartered in 1985, and today has more than 650 member institutions from 47 countries on six continents. These members include most of the world's major institutions that deal in privately negotiated derivatives, as well as many of the businesses, governmental entities and other end users that rely on over-the-counter derivatives to manage efficiently the financial market risks inherent in their core economic activities. Information about ISDA and its activities is available on the Association's web site: www.isda.org.

^®ISDA is a registered trademark of the International Swaps & Derivatives Association, Inc.