GFI Energy Ventures - Press Release

Trans-Elect Closes Recapitalization

GFI Energy Ventures Joins Forces
with Independent Transmission Pioneer

April 18, 2005 - For Immediate Release

Reston, VA – Trans-Elect, Inc., North America’s first independent transmission company, today completed a recapitalization that expands its capacity to improve the nation's transmission infrastructure. Under the terms of the transaction, an affiliate of GFI Energy Ventures LLC will acquire 87 percent of Trans-Elect’s existing preferred equity and has committed to purchase additional preferred stock to provide working capital and development funding for the company. The Federal Energy Regulatory Commission (FERC) recently approved the transaction.

"Independently owned and operated transmission has long been a goal of FERC because it eliminates the potential economic conflict of interest when the same company owns both generation and transmission," said FERC Commissioner Nora Mead Brownell. The independent transmission business model invests more on power grid upgrades, operations and maintenance. This helps solve congestion problems, improve reliability and brings value to customers."

"This recapitalization gives us the resources to greatly expand the scope of Trans-Elect’s development activities," said Frederick W. Buckman, Chairman of the company’s Board of Director. "Whatever the grid needs, we are ready to deliver, whether the partnering arrangement is simple or complex and whether the investment is to acquire and upgrade an existing system or develop a brand new asset."

Trans-Elect will be managed by Robert L. Mitchell, Stephen A. Shulman, and Paul D. McCoy, three of its senior officers, who will own both preferred and common equity.

“We are very pleased to be associated with an organization and group of individuals who are so centrally involved in addressing one of the American economy's most urgent needs -- the improvement of the reliability and capacity of our electric transmission system,” said Lawrence Gilson, Chairman of GFI Energy Ventures."

About Trans-Elect, Inc.:.:
Trans-Elect was formed in 1999 to pursue the development of independently owned transmission in North America with the twin objectives of increasing the reliability of the system and lowering costs to consumers. Since 2002, Trans-Elect has acquired an interest in the AltaLink transmission system in Alberta, Canada, purchased Consumers Energy’s Michigan transmission system and secured financing to construct the desperately needed expansion of the Path 15 transmission line in California. Trans-Elect is actively pursuing several other transmission system acquisitions and capacity upgrades.

About GFI Energy Ventures LLC:
GFI is a private equity firm that has initiated and led over 45 investments in the energy sector over the past ten years. GFI is the co-general partner with Oaktree Capital Management of the OCM/GFI Power Opportunity Funds through which they currently manage over $1 billion of capital. GFI invests exclusively in successful, profitable businesses providing the equipment, software, services, and systems needed by utilities and other energy companies to compete successfully at a time of major sector change.

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