MidAmerican Energy Holdings Company Reaches Definitive Agreement to Acquire Constellation Energy

Cash consideration of $4.7 billion, $26.50 per share

MidAmerican to invest $1 billion in preferred stock

Transaction creates industry-leading collection of energy assets


Media Contacts:

MidAmerican Energy Holdings Company:
Sara J. Schillinger/Ann Thelen
515-242-4032/515-281-2785

Constellation Energy:
Robert L. Gould/Debra Larsson
410-470-7433

Investor Contacts (Constellation Energy):
Kevin Hadlock/Janet Mosher
410-470-3647


DES MOINES, Iowa and Baltimore – (Sept. 19, 2008) – MidAmerican Energy Holdings Company and Constellation Energy (NYSE: CEG) today announced the companies have reached a definitive merger agreement in which MidAmerican will purchase all of the outstanding shares of Constellation Energy for cash consideration of approximately $4.7 billion, or $26.50 per share. As agreed under the terms of the tentative agreement announced on Sept. 18, Constellation Energy is issuing to MidAmerican $1 billion of preferred equity yielding 8 percent upon signing the definitive agreement.

The definitive agreement, which has been approved by both companies’ Boards of Directors, is subject to shareholder and customary federal and state regulatory approvals. The transaction is expected to close within nine months. The agreement expires nine months after its execution but may be extended by either company for up to three months.

“Having reached a definitive agreement with Constellation Energy, we look forward to gaining the necessary approvals to bring together our companies to establish a world-class organization of people and an industry-leading collection of energy assets,” said Gregory E. Abel, president and chief executive officer of MidAmerican Energy Holdings Company. “We believe Constellation Energy has a strong business plan and are committed to helping the Company reach its long-term goals, while also maximizing the benefits of our complementary capabilities.”

“We are very pleased to have reached this definitive agreement with MidAmerican as we strongly believe this transaction is in the best long-term interest of our stakeholders,” said Mayo A. Shattuck III, chairman, president and chief executive officer for Constellation Energy. “The significant industry expertise and financial stability of MidAmerican and Berkshire Hathaway will allow Constellation Energy to continue our strong heritage as a first-choice energy solution provider and continue to build our business for the next 200 years.”

About Constellation Energy

Constellation Energy (www.constellation.com), a FORTUNE 125 company with 2007 revenues of $21 billion, is the nation’s largest competitive supplier of electricity to large commercial and industrial customers and the nation’s largest wholesale power seller. Constellation Energy also manages fuels and energy services on behalf of energy intensive industries and utilities. It owns a diversified fleet of 83 generating units located throughout the United States, totaling approximately 9,000 megawatts of generating capacity. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland.

About MidAmerican Energy Holdings

MidAmerican Energy Holdings Company, based in Des Moines, Iowa, is a global provider of energy services. Through its energy-related business platforms, MidAmerican provides electric and natural gas service to more than 6.9 million customers worldwide. These business platforms are Pacific Power, Rocky Mountain Power and PacifiCorp Energy, which comprise PacifiCorp; MidAmerican Energy Company; CE Electric UK; Northern Natural Gas Company; Kern River Gas Transmission Company; and CalEnergy. Information about MidAmerican is available at www.midamerican.com.

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