Wall Street Investment Firm Buys Wind Energy Developer

Goldman Sachs Group has agreed to acquire Zilkha Renewable Energy, one of the nation's leading independent wind energy development companies, with a portfolio of nearly 4,000 megawatts in various stages of development in a dozen states.

Published: 23-Mar-2005

New York, New York, March 21, 2005The Goldman Sachs Group (NYSE: GS) has agreed to acquire Zilkha Renewable Energy, the two companies announced today.

The transaction is subject to regulatory approvals and is expected to close in the second quarter of 2005. The sale price was not disclosed.

Zilkha Renewable Energy, owned by the father-and-son team of Selim and Michael Zilkha, is one of the nation’s leading independent wind energy development companies, with a portfolio of nearly 4,000 megawatts in various stages of development in a dozen states. Goldman Sachs will acquire 100% of Zilkha’s interests in the 200-megawatt Flat Rock Wind Power Project in Lewis County, New York, as well as 100% of Zilkha’s interest in the 150-megawatt Blue Canyon Phase II Project in
Oklahoma, both of which are expected to be completed by the end of 2005.

“Goldman Sachs is already a global leader in the energy field, with major positions in traditional energy development, power marketing and commodities trading, and energy finance. Building on our existing portfolio of wind energy assets is a logical extension of our strategy,” said Henry M. Paulson, Jr., Goldman Sachs’ Chairman and Chief Executive Officer. “Goldman Sachs believes that wind and other renewable forms of energy will become an increasingly important part of the world’s energy mix, and Goldman Sachs aspires to play a leading role in this high-growth industry."

“This acquisition will allow us to leverage Zilkha’s strength in wind energy development with Goldman’s expertise and market leadership in energy finance and power marketing. Zilkha has established a reputation for excellence in wind energy development. We intend to build upon that reputation and Zilkha’s development pipeline to deliver high-quality projects that meet the needs of customers, partners, landowners, and communities,” Paulson said.

Michael Zilkha, co-owner and director of Zilkha Renewable Energy, said, “Goldman Sachs’s acquisition of Zilkha is a clear sign of wind’s emergence as a competitive, efficient, and mainstream energy resource. Because ours is a family-owned company, relationships have always been very important to my father and me. We are maintaining an interest in the new company, and we look forward to a smooth transition to a larger, more integrated enterprise.”

“The long-term nature of wind projects places a premium on trust and relationships with customers, suppliers, communities, and landowners. We intend to continue that approach. In doing so, we hope to help accelerate the integration of wind generation into the nation’s energy supply,” Paulson said.

Goldman Sachs is a leading global investment banking, securities, and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments, and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in
New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong , and other major financial centers around the world.

Zilkha Media Contact: Michael Skelly
(713) 571-6640

Goldman Sachs Media Contact: Michael DuVally
(212) 902-5400

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