ENERGY INVESTORS FUNDS COMPLETES ACQUISITION OF POWER PLANT PORTFOLIO FROM COGENTRIX ENERGY, LLC

NEW YORK  (November 16, 2007) Energy Investors Funds (“EIF”), an established private equity fund manager that invests in the U.S. energy and electric power sector, announced that United States Power Fund III, L.P. (“USPF III”) has completed the acquisition of 80 percent of Cogentrix Energy, LLC’s interest in 14 power plants.  Cogentrix is a wholly owned subsidiary of The Goldman Sachs Group, Inc. (NYSE: GS).  Terms of the deal were not disclosed.

As previously announced, the purchase encompasses 2,331 net megawatts of generating capacity. 

“This is a landmark deal for our firm and will provide a cornerstone investment for USPF III, which we closed earlier this year,” said Herbert Magid, a Managing Partner of EIF.  “The Cogentrix plants are well-constructed, well-run and highly regarded facilities with strong operating histories.”

Cogentrix will retain a 20 percent minority interest in the positions being sold and will provide management services to the plants as well.  The acquired portfolio consists of power plants located in 12 states that sell substantially all of their generation capacity under mid- to long-term power purchase agreements or tolling arrangements to local counterparties.

“We are excited to complete this deal and look forward to working with EIF and its partners to continue to enhance the value of these power plants,” said Larry Kellerman, President of Cogentrix. 

“This acquisition is the result of a collaborative effort among USPF III, USPF II, and our co-investors,” said Andrew E. Schroeder, a Senior Partner of EIF.  “We believe our team brought value to the transaction and will receive significant value from the acquisition.”

Lehman Brothers served as exclusive financial advisor to EIF and syndicated the co-investor equity involved in the transaction.  Milbank, Tweed, Hadley & McCloy LLP served as lead deal counsel to EIF, and Bingham McCutchen LLP served as lead counsel for the equity syndication and special regulatory counsel to EIF. 

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 $3.3 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.

About Goldman Sachs

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.

About Cogentrix Energy, LLC

Cogentrix Energy, LLC, a wholly-owned subsidiary of The Goldman Sachs Group, Inc., is a leading owner and operator of independent power and cogeneration assets in North America.  After the closing of this transaction, Cogentrix will be a primary Goldman Sachs platform for the development and operation of both conventional and renewable power generation in North America and selected international markets.

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