CenterPoint Energy, Inc. announced today that its natural gas distribution, pipelines and gathering operations subsidiary, CenterPoint Energy Resources Corp. (CERC), plans to redeem all outstanding 6 1/4 percent Convertible Trust Originated Preferred Securities of its wholly owned subsidiary, NorAm Financing I, on August 1, 2005. The redemption price will be $50 per trust preferred security, plus accrued and unpaid distributions as of the redemption date. As of July 1, 2005, there was $334,000 aggregate liquidation amount of the trust preferred securities outstanding. Payment of the redemption price will be made through The Depository Trust Company.

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In lieu of redemption, the trust preferred securities may be converted at any time before the close of business on July 29, 2005. Any trust preferred securities not converted prior to that time will be redeemed. Each trust preferred security currently converts into $33.62 of cash and 2.34 shares of CenterPoint Energy, Inc. common stock. Any dividend declared on the common stock prior to August 1, 2005, will be payable to holders who convert their trust preferred securities on or before the record date for such dividend.

Conversion of a trust preferred security will be made only upon delivery of an irrevocable request to convert the trust preferred security to The Bank of New York at the following address:

                           The Bank of New York
                        Corporate Trust Operations
                           Reorganization Unit
                       101 Barclay Street -- 7 East
                            New York, NY 10286

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission and distribution, natural gas distribution and sales, and interstate pipeline and gathering operations. CenterPoint Energy serves nearly five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total about $17 billion. With more than 9,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at http://www.centerpointenergy.com/ .

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SOURCE: CenterPoint Energy, Inc.