Press Release
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LG&E Energy To Test Multi-Pollutant Control Equipment at Ghent Plant

Ground-Breaking Process Expected to Reduce SO2, NOx

(LOUISVILLE, KY – May 24, 2002) LG&E Energy Corp. will team with two vendors to conduct the first-ever field testing of a ground-breaking multi-pollutant control process. The testing will take place at the Ghent generating facility in Carroll County, Ky., which is operated by LG&E Energy subsidiary Kentucky Utilities.

The joint demonstration project is expected to be operating later this year.

Airborne Pollution Control Inc. (Airborne) has developed “the Airborne process,” which removes sulfur dioxide (SO2) and nitrogen oxides (NOx) from plant emissions, while turning the left-over material into a high-quality granular fertilizer. The scrubbing agent, sodium bicarbonate, which is similar to household baking soda, is regenerated in the process, reducing operating costs and reducing waste.

All these processes have proven viable in the power, food or fertilizer industries. This will be the first full-scale test of the combined technologies. If it is successful, Ghent could be the first unit in North America to receive the new equipment.

Subsidiaries of LG&E Energy will lease the site and sell input materials or services to the demonstration plant, as well as be a minority investor in the project. The Babcock & Wilcox Company is providing engineering expertise.

“Our company has been at the forefront of pollution control equipment ever since we brought our first scrubbers on line in the early 1970s,” said Caryl Pfeiffer, LG&E Energy’s director of Environmental Affairs. “We are pleased to be able to continue to play a role in the development of the latest environmental technologies. If this process works as expected, it would be a monumental breakthrough in our industry.”

LG&E Energy Corp., headquartered in Louisville, Ky., is a diversified energy services company that is a member of the Powergen plc. (LSE; NYSE: PWG) group of companies. As Powergen’s North American headquarters, LG&E Energy owns and operates Louisville Gas and Electric Company, a regulated electric and gas utility serving Louisville, Ky. and 16 surrounding counties; and Kentucky Utilities Company, a regulated electric utility, based in Lexington, Ky., which serves customers in 77 Kentucky counties and five counties in Virginia. LG&E Energy also owns interests in certain independent energy and energy-related businesses.

Airborne Pollution Control Inc. is a corporation based in Calgary, Alberta, Canada. Airborne has developed and has exclusive rights to patents throughout the world for the Airborne Process.

The Babcock & Wilcox Company is a subsidiary of McDermott International, Inc., (NYSE: MDR), a leading worldwide energy services company. McDermott subsidiaries manufacture steam-generating equipment, environmental equipment, and products for the U.S. government. They also provide engineering and construction services for industrial, utility and hydrocarbon processing facilities, and to the offshore oil and natural gas industries.