Cinergy Solutions to Operate and Maintain Power Plant at Horsehead Corp.'s Monaca, Pa. Facility

CINCINNATI--()--May 11, 2004--Cinergy Solutions, Inc. (Solutions) has entered into an agreement with Horsehead Corp. (HC) for the operation, maintenance, dispatch and coal procurement for G.F. Weaton Station power plant in Monaca, Pa. Financial terms of the transaction were not disclosed.

Cinergy Solutions will provide operations and maintenance services to increase operational efficiency and reliability at the plant. Solutions will oversee the economic dispatch of the plant in serving the Monaca facility and the electricity market in conjunction with its power marketing affiliate, The Cincinnati Gas & Electric Company. Solutions will also manage fuel procurement for the plant. The combination of these services provided by Solutions will help HC significantly lower overall energy costs at the plant.

"This project is a great example of the value we can offer our customers in packaging the breadth of our corporate offering in a custom tailored approach," said Steve Harkness, President of Cinergy's energy services group. Solutions will also manage operational compliance with existing environmental regulations for the Weaton Station plant.

"We view this as a win-win business venture for Horsehead Corp. and Cinergy Solutions," said Jim Hensler, President & CEO of Horsehead Corp. "It allows two great companies to focus their energy on their respective areas of expertise," he added.

Weaton Station consists of two identical coal fired units with a combined output of 110 MW similar in design to other units operated by Cinergy.

Cinergy Solutions, Inc. owns, operates, and maintains cogeneration and district energy facilities and provides energy services and utility outsourcing for large energy consumers, industrials and municipalities. The company specializes in reducing energy costs, lowering emissions and conserving energy and improving efficiency for its customers, some of which include Kodak, Procter & Gamble, General Motors and BP. Cinergy Solutions currently has 20 projects in operation or under construction in 15 states. Through its affiliates, Cinergy Solutions also provides energy conservation and construction, operations and maintenance for gas pipelines as well as high- and medium-voltage transmission and distribution systems.

Horsehead Corp. is the largest zinc producer in the United States and the world's largest recycler of zinc bearing materials, including the steel industry's EAF Dust. The company annually produces over 165,000 tons of zinc products and recycles more than 450,000 tons of EAF Dust. Horsehead will continue to use the Zinc Corporation of America (ZCA) and Horsehead Resource Development (HRD) brands and presently employs over 1000 people in six states.

Contacts

Cinergy Solutions, Inc., Cincinnati
Steve Brash, 513-287-2226 (w) 513-231-6895 (h)
Website: www.cinergysolutions.com

Contacts

Cinergy Solutions, Inc., Cincinnati
Steve Brash, 513-287-2226 (w) 513-231-6895 (h)
Website: www.cinergysolutions.com