Financial Astrology of Dynegy Holdings, Inc.

FINANCIAL ASTROLOGY

First Trade Date for Dynegy Holdings, Inc.

Company Name	First Trade Date (yyyy-mm-dd)
Dynegy Holdings, Inc.	1998-07-07

Company Name	Symbol
Dynegy Holdings, Inc.	DYN
History and Business of Company (this information may include date of incorporation)
We are a holding company and conduct substantially all of our business operations through our subsidiaries. Our current business operations are focused primarily in three areas of the energy industry: power generation; natural gas liquids; and regulated energy delivery. Since the beginning of 2003, we have completed a number of restructuring and refinancing transactions designed to reduce our debt and other obligations, improve our liquidity position and clarify our business strategy. Significant accomplishments during 2003 include the following: • Sales of non-strategic assets, including our communications business, Hackberry LNG development project and ownership interests in domestic and international power generating projects; • Renewal of our primary bank credit facility through February 2005; • Refinancing of approximately $2.0 billion in near-term debt and extending the related maturities to 2008 and beyond; • Restructuring the $1.5 billion Series B Mandatorily Convertible Redeemable Preferred Stock previously held by a subsidiary of ChevronTexaco Corporation, pursuant to which we paid that subsidiary $225 million in cash and issued to it $625 million in new securities; and • Terminating four of eight power tolling arrangements. We also continued our exit from the customer risk management business. Our efforts are evidenced by a material reduction in the collateral postings associated with this business, where the February 23, 2004 amount of $172 million is down from $806 million at year-end 2002. Our remaining customer risk management business, which primarily consists of four power tolling arrangements and related gas transportation agreements, as well as our legacy gas and power trading positions, will continue to impact negatively our cash flows and operating results until the associated obligations have been terminated, restructured or satisfied. Most recently, we entered into an agreement to sell Illinois Power Company, which currently comprises our regulated energy delivery business, to Ameren Corp. We are targeting closure of the transaction by the end of 2004; however, closing is contingent on the receipt of required regulatory approvals and other conditions. At closing, Ameren will assume all of Illinois Power's third-party debt and preferred stock obligations, which we estimate will be approximately $1.8 billion. In addition, Ameren will pay us $400 million in cash, subject to working capital adjustments, and place $100 million into escrow, subject to full release to us on December 31, 2010 or earlier upon the occurrence of specified events. We intend to use these proceeds to pay transaction fees and expenses and to reduce our outstanding debt, including certain debt owed to ChevronTexaco. In addition to reducing our substantial leverage, the closing also would reinforce our business strategy of focusing on unregulated energy businesses. Dynegy began operations in 1985 and became incorporated in the State of Illinois in 1999 in anticipation of our February 2000 acquisition of Illinova Corporation. Our principal executive office is located at 1000 Louisiana Street, Suite 5800, Houston, Texas 77002, and our telephone number at that office is (713) 507-6400. Our SEC filings on Forms 10-K, 10-Q and 8-K (and amendments to such filings) are available free of charge on our website, www.dynegy.com, as soon as reasonably practicable after those reports are filed with or furnished to the SEC. The contents of our website are not intended to be, and should not be considered to be, incorporated by reference into this Form 10-K.

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