ST. PETERSBURG, Fla. (May 1, 2006) -- As part of its ongoing support for renewable energy and developing technologies, Progress Energy Florida (PEF) has signed a long-term contract to purchase electricity generated by a unique energy source.

Biomass Investment Group, Inc. (BIG) plans to build an environmentally friendly power plant in Central Florida using a crop known as E-Grass?. It will generate about 130,000 kilowatts, or enough to power approximately 83,000 homes. The plant is expected to avoid the need to burn nearly 9 million tons of coal over the 25-year life of the contract.

Once constructed, it will be the world's first commercial-scale, biomass power plant using crops grown on site. As a "closed-loop" plant, it will contribute no additional carbon dioxide to the atmosphere, and is estimated to reduce carbon emissions by more than 20 million tons over the life of the contract when compared to coal.

"We have a long history of support for innovation and research into new energy sources," said Bill Habermeyer, president and CEO of Progress Energy Florida. "We have participated in a number of partnerships and programs to demonstrate the various uses of renewable energy, and biomass can play an important role as well. As Florida continues to grow, we must ensure a good balance of generation resources, including both traditional and renewable means. Efficiently managing all our utility operations -- including power purchases like this one -- promotes rate stability for customers. That is important every year, but especially at a time when fuel costs continue to rise."

"We look forward to introducing Florida consumers to the environmental and economic benefits of this renewable technology," said Allen Sharpe, president of BIG. "We appreciate Progress Energy's strong support for this exciting project. We have come a long way in our quest to make this technology commercially viable."

The contract will be filed for consideration with the Florida Public Service Commission (PSC). The company seeks PSC approval of the contract and certification of the proposed plant as a qualifying facility under Florida laws and regulations that encourage renewable energy.

PEF purchases more than 800 megawatts from a number of qualifying facilities. They utilize various fuel sources, including biomass, waste heat from agricultural processes and municipal solid waste.

Progress Energy Florida, a subsidiary of Progress Energy (NYSE: PGN), provides electricity and related services to more than 1.5 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing over 20,000 square miles including the cities of St. Petersburg and Clearwater, as well as the Central Florida area surrounding Orlando. Progress Energy is the 2005 recipient of the prestigious J.D. Power and Associates Founder's Award for dedication, commitment and sustained improvement in customer service. For more information about Progress Energy, visit the company's Web site at www.progress-energy.com.

Biomass Investment Group, Inc. (BIG) is a globally focused company based in Gulf Breeze, Fla. BIG is committed to large-scale production of biomass resources using environmentally friendly and sustainable production systems and conversion technologies.BIG produces renewable energy from E-Grass?, a dedicated "energy crop" grown specifically for conversion into power. BIG's bio-based products are sold to power producers as an environmentally friendly renewable fuel, and to the paper industry as a non-wood source of fiber. For more information, visit the company's Web site at www.egrass.com.

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Media contacts:

Progress Energy Florida: (866) 520-6397

Biomass Investment Group: (850) 916-1305