Court Approves Mirant New York Tax Settlement

ATLANTA, Dec. 15  /PRNewswire-FirstCall/ -- Mirant (NYSE:MIR) today announced that the United States Bankruptcy Court for the Northern District of Texas has approved a settlement among certain of its New York subsidiaries still in bankruptcy and various local jurisdictions of disputed property taxes for Mirant's Bowline and Lovett electric generating facilities.

The settlement resolves pending disputes regarding refunds sought by Mirant for property taxes paid for 1995 through 2003 and unpaid taxes assessed for 2003 through 2006.  Property taxes paid for 1995 through 2003 and unpaid taxes assessed for 2003 through 2006 were previously expensed by Mirant for financial reporting purposes. Under the settlement, Mirant will receive refunds totaling approximately $163 million for 1995 through 2003, and will pay unpaid taxes of approximately $115 million for 2003 through 2006, resulting in Mirant receiving a net cash amount of $48 million. As a result of the refunds and the reduction in unpaid taxes under the settlement, Mirant will recognize in the fourth quarter of 2006 a gain of approximately $244 million.

Mirant is a competitive energy company that produces and sells electricity in the United States, the Caribbean, and the Philippines. Mirant owns or leases approximately 17,400 megawatts of electric generating capacity globally. The company operates an asset management and energy marketing organization from its headquarters in Atlanta. For more information, please visit http://www.mirant.com/.

Stockholder inquiries:

678 579 7777 

DATASOURCE: Mirant



CONTACT:  Media, Felicia Browder, [phone], or

, or Investor, Mary Ann Arico, [phone], or

, or Sarah Stashak, [phone], or

, or Stockholder inquiries, [phone], all of

Mirant



Web site:  http://www.mirant.com/ 

Copyright