Press Release _PNC_ Final

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					   Babcock Power Inc. • 55 Ferncroft Road, Suite 210 • Danvers, Massachusetts 01923

                                                                 Financial Information Contact:
                                                                 Anthony A. Brandano
                                                                 Chief Financial Officer
                                                                 Babcock Power Inc.
                                                                 Telephone 978-646-3313

                                                                 Media Information Contact:
                                                                 Steven E. Sabo
                                                                 Director, Marketing & Communications
                                                                 Babcock Power Inc.
                                                                 508-854-3630

January 17, 2008
                                FOR IMMEDIATE RELEASE

       Babcock Power Announces New Accounts Receivable Securitization Facility

Danvers, MA – Babcock Power Inc. (BPI), a privately held Delaware corporation, announced today that
it has executed an agreement for a new $100 million three year accounts receivable securitization. The
new securitization will augment its existing credit facility and increase BPI’s borrowing capacity to $195
million. This new facility further demonstrates BPI’s continued growing financial strength and ongoing
commitment to the power generation industry.

BPI’s President and CEO James F. Wood commented, “This new securitization further enhances BPI’s
market position and will allow it to capitalize on its broad range of products and services for fossil,
nuclear, cogeneration, combined cycle, biomass and waste-to-energy plants. This will also permit the
company to continue expanding its leadership role in the air quality control system market and provide
additional funds for the overall growth of BPI through acquisition.”

“This new agreement reflects BPI’s markedly continued ongoing improvement in its balance sheet and
liquidity. Moreover, this securitization will provide BPI with increased capacity and financial flexibility
at a reduced cost so that BPI can support its operations and revenue growth. In addition, BPI will be able
to seek additional business and opportunities in all its served markets,” commented Anthony Brandano,
BPI’s CFO.

PNC Bank, N.A. structured and arranged the transaction. Funding is provided by Market Street Funding
LLC, the A-1/P-1 multi-seller commercial paper conduit administered by PNC Bank, N.A. PNC Bank is
a subsidiary of The PNC Financial Services Group (NYSE: PNC). PNC is one of the nation’s largest
financial services companies with assets of over $130 billion.

Babcock Power Inc., through its subsidiaries, is one of the world’s leading suppliers of technology,
equipment, and services to the power generation industry. Babcock Power subsidiary companies include;
Vogt Power International (Louisville, KY), Thermal Engineering International (USA) Inc. (Santa Fe
Springs, CA), Babcock Power Environmental, Riley Power Inc. and Babcock Power Services (Worcester,
MA), Boiler Tube Company of America (Lyman, SC), and TEi Construction Services, Inc. (Duncan, SC).
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