Reliant Resources, Inc. today announced that Orion Power Holdings and one of its subsidiaries reached agreement with their bank lenders not to apply a financial covenant for debt service coverage during the second quarter 2002. Orion was acquired by Reliant in a transaction that closed in February 2002.

Under terms of the agreement, which represents amendments to $1.14 billion in credit agreements held by Orion and its subsidiary, the covenant will not be applied until the end of the third quarter of 2002. Reliant is in discussions with its bank group to refinance or further amend these credit agreements before September 30. These credit agreements were in place at Orion at the time of its acquisition by Reliant.

Reliant Resources, based in Houston, Texas, provides electricity and energy services to wholesale and retail customers in the U.S. and Europe, marketing those services under the Reliant Energy brand name. It has more than 21,000 megawatts of power generation capacity in operation, under construction or under contract in the U.S. and nearly 3,500 megawatts in operation in Western Europe. At the retail level, Reliant Resources provides a complete suite of energy products and services to electricity customers in Texas ranging from residences and small businesses to large commercial, institutional and industrial customers. Reliant Resources currently is a majority-owned subsidiary of Reliant Energy . For more information, visit our web site at http://www.reliantresources.com/ .

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SOURCE: Reliant Resources, Inc.