ENERGY INVESTORS FUNDS SELLS TIERRA ENERGY'S WIND POWER DEVELOPMENT ASSETS TO DUKE ENERGY

NEW YORK, NY (May 30, 2007) Energy Investors Funds (“EIF”), an established private equity fund manager that invests in the energy and electric power sector, today announced that its United States Power Fund II, L.P. (“USPF II”), has sold the wind development assets of Tierra Energy LLC (“Tierra”), an Austin, Texas-based developer of natural gas-fired generation facilities and wind farms, to Duke Energy for an undisclosed amount.  Included in the purchase are more than 1,000 megawatts of wind projects under development in the Western and Southwestern United States.  

In November 2005, USPF II acquired a majority interest in Tierra.  Three of Tierra’s wind development projects acquired by Duke Energy – a total of approximately 240 megawatts – are located in Texas and Wyoming, and are anticipated to be in operation by the end of 2008, with additional Texas and Wyoming facilities potentially in operation in 2009.

“Tierra Energy is a premier developer of wind power generation projects and we are thrilled to have invested with them,” said Terence Darby, the Energy Investors Funds managing partner who led the deal team with Keith Derman, vice president.  “This partial exit allows EIF to return some capital to our investors while maintaining a stake in an excellent company going forward.”  After the sale, Tierra Energy will continue to own and develop a portfolio of natural gas-fired generation facilities in various markets, including the Eastshore Energy Center in Hayward, CA. 

“This has been a terrific investment for USPF II, EIF and its investors,” said John Buehler, a managing partner of EIF.  “Over its history, Energy Investors Funds has generated excellent, risk-adjusted returns and the partial sale of our stake in Tierra Energy is the latest example of our ability to realize value for our investors.”

About Energy Investors Funds

Energy Investors Funds was founded in 1987 as the first private equity fund manager dedicated exclusively to the independent power and electric utility industry.  Its consistent, proven investment strategy is to create geographically and technologically diversified portfolios of electric power-related assets that provide superior risk-adjusted equity returns with current cash flow and capital appreciation.  As investment managers, Energy Investors Funds seeks to mitigate commodity risk (fuel and electricity) by focusing primarily on acquiring power assets with long-term off-take contracts.  Energy Investors Funds has mobilized over $2.5 billion in capital, and currently manages six private equity funds from its offices in Boston, New York, and San Francisco.  These funds have made over 90 diversified investments with a combined underlying asset value exceeding $5 billion.  For more information visit www.eif.com.

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