Direct Energy is pleased to announce that it has today signed an agreement to acquire Strategic Energy LLC, a subsidiary of Great Plains Energy Inc. (NYSE:GXP) , for a total cash consideration of US$300 million. The transaction is debt free and includes an amount of working capital which will be subject to a subsequent true-up.

The merger of Strategic Energy with Direct Energy's existing commercial and industrial (C&I) business unit, Direct Energy Business, will create a business supplying almost 55 TWh of electricity and gas to customers which will make it a top three supplier of energy to the C&I market in North America and enable the achievement of synergies.

"Acquiring Strategic Energy is core to Direct Energy's strategy of building material business in commercial and industrial energy markets," said Direct Energy Chairman and CEO, Deryk King. "This acquisition makes us a top three energy retailer in the business market and, following our recent purchase of Rockyview Energy, we are well positioned to pursue further aggressive organic growth across North America."

Strategic Energy is one of the United States' largest competitive electricity suppliers to the C&I market with over 26,000 customers across 11 states. It represents an excellent fit for Direct Energy Business which has operations across a number of the same markets as well as in Canada.

Direct Energy also brings a gas business to the combined enterprise, a business services capability, an upstream asset portfolio and strong energy management skills. The complementary footprint, portfolio, skills, culture and management philosophy will enable Direct Energy to accelerate its growth plans through immediate scale benefits post integration and further cross- selling opportunities in a competitive C&I market where size is an important driver of profitability.

The transaction is subject to regulatory approval and is expected to close in June 2008.

About Direct Energy
Direct Energy is one of North America's largest energy and energy-related services providers with over 5 million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing their energy costs through a portfolio of innovative products and services. A subsidiary of Centrica plc , one of the world's leading integrated energy companies, Direct Energy operates in 22 states plus DC and 10 provinces in Canada. To learn more about Direct Energy, visit http://www.directenergy.com/.

Wed Apr 02 09:21:00 CDT 2008