PGA TOUR MEDIA CONFERENCE

March 27, 2001

Jack Burke

Tim Finchem

Henry Hughes

Chuck Watson

MARLENE LIVAUDAIS: We'd like to welcome you to Champions Golf Club and thank you for attending our media conference. As you can see, we have some very exciting news for the City of Houston and THE TOUR Championship. My name is Marlene Livaudais. I'm the tournament director, and I want to thank you again for coming. This marks the fourth time that the THE TOUR Championship has returned to Champions Golf Club. As you can see, the PGA TOUR loves it here, having created something special, and our players love to come here and compete. Before we begin, I'd like to make a few introductions. First, I'd like to introduce our assistant general chairman, Philemena Baird, and any of our executive committee that is in the room, would you please stand and be recognized. Without the efforts of the Houston Golf Association, we would not be able to put on such a wonderful event, and we thank you. Next, I'd like to introduce some of the staff of Champions Golf Club. Shirley Sembriztky the manager (inaudible) and the superintendent and Stephen Nutt from our staff, Summer Woods and Jessica Durbin who runs our program. We'd like to introduce you to them. The PGA TOUR has had a rich history of tournaments in Houston for over 50 years, and we have hosted three successful TOUR Championships at Champions Golf Club. The last three events have raised over $2.7 million for our community, and we hope you will join us again in November, for November 1 4. Here to introduce our new presenting sponsor and what this new relationship means to us is the gentleman who runs and manages the day today operations for the PGA TOUR, our senior vice president and chief of operations, Henry Hughes.

HENRY HUGHES: Thank you, Marlene. It's always a pleasure to be back in Houston, with Jackie Burke, and all of our friends here at Champions. Commissioner Finchem is attending a World Golf Federation board meeting today and his schedule did not allow him to be here. Before I begin, we do have a video message from the Commissioner.

COMMISSIONER FINCHEM: Good morning. I'm sorry my schedule prevented me from being in Houston with you this morning for this very special announcement to recognize Dynegy as the new presenting sponsor of THE TOUR Championship, but I am pleased that I was able to make communication by way of our modern technology. As one of the fastest growing firms in America, Dynegy is an appropriate partner for us in the development of THE TOUR Championship, not only because of their business performance, but because Dynegy clearly is a leader in community relations and in providing the kind of image that corporate America, the good corporate citizen that they have demonstrated in the Houston area, and now will do on a national level through their relationship with THE TOUR Championship. I cannot imagine a better place to begin this new relationship than at the Champions Golf Club. Clearly, Champions is one of the premiere golf clubs in America, and Champions Golf Course is one that the players recognize as a great test, and fits right in there with the other golf courses we've played over the years at THE TOUR Championship, including Pinehurst No. 2 and East Lake Golf Club, as well as Southern Hills. We're delighted to be coming back to Houston. I want to make a special comment about several people. First of all, Chuck Watson. Chuck's leadership and vision has driven the Dynegy performance and success, but he has taken a personal role in putting this partnership together, and we know that with his commitment, this partnership is going to be a real success. Also, I want to make a special recognition of Jackie Burke, and of course, Earl Elliot. Jackie and Earl have been our leaders and our stalwarts, and of course Jackie and Jimmy Demaret developed and built the Champions Club years ago, and we are delighted to recognize that great golf course. But Jackie and Earl have made it happen. And frankly, much of the success of THE TOUR Championship and the growth and the stature of THE TOUR Championship is because of the partnership between Champions with Jackie Burke and the Houston Golf Association's, Earl Elliot. And the combination of those two groups has made THE TOUR Championship get to where it is today, and we thank you both for your continued commitment. We look forward to seeing you in a few months. Finally, let me just say that we want to thank Dynegy. This tournament's future is based on a partnership. With Dynegy's commitment, we will be able to grow it. It will continue to grow in stature and continue to develop its position as one of the premiere events in golf, and we look forward to being with Dynegy in Houston this year, and, of course, next year back in Atlanta at the East Lake Golf Club. Chuck, I look forward to seeing you down there soon. And to everyone, I appreciate the opportunity to be with you this morning. Thank you very much.

HENRY HUGHES: I would like to introduce a couple of members of our staff that are here with us today, who have some additional meetings with our new sponsor, but who have been very involved in this event from the very beginning. We have Bob Combs, the senior vice president of communications, we have Donna Orender, who is the senior vice president of broadcasting, and we have Tom Wade, who is the senior vice president of our marketing department. As some of you may know, our events at the TOUR are owned and operated, actually are operated by our group called Championship Management. And in addition to Marlene, who is our tournament director here in Houston, we have Robert Dale Morgan, who is our vice president of Championship Management and Ron Cross who is the chairman for the 2002 TOUR Championship back at East Lake Golf Club in Atlanta. I just thought that there's one more special moment, and then I'll get right into the details today. But we have a very special person in the room. I know all of you know him and love him here in Houston, but I just wanted to make just a couple of comments about Earl Elliot. In addition to everything he has done with his involvement in our annual event here at THE TOUR Championship and his role in the Houston Golf Association, he is one of perhaps 60,000 or 65,000 volunteers who run our tournaments on a weekly basis. And obviously, we could not do that or even begin to compensate those people and be able to operate the tournament. On an annual basis, the leadership of our volunteer organization in each tournament, believe it or not, selects one individual we think best exemplifies what volunteering is about and who has a real dedication to golf. I'm just proud to remind you that last week at THE PLAYERS Championship, Earl was awarded the Volunteer Award for the year 2000. Some of you saw that we had a Monday broadcast yesterday. We try to finish our tournaments on Sunday, but Mother Nature does not always allow that, but even with the Monday finish, the PGA TOUR is experiencing perhaps the best times it has ever seen; our fan base, our television ratings, are higher are than they have ever been. We are just hearing some overnight numbers, and we were nearly two points higher than the normal broadcast than goes on on a Monday morning. Consistently, the PGA TOUR's ratings exceed those of the NBA, and even the NCAA Basketball March Madness that's going on. It is a great time for the PGA TOUR. Things are very healthy, and a lot of that is because of the support of organizations like Dynegy, who is joining us today. We think the main reason that we are riding this wave is the image that golf provides. Our sport is squeaky clean. Our players are very approachable. It is the only sport where the amateurs are allowed to actually compete side by side with the professional players, and that image is really what we have to fall back on as we continue to raise our values. Today is just another step in that direction, to add a fine company like this to our list of sponsors. Just a little bit of history in addition to what the Commissioner mentioned in his remarks. We had some very distinct goals in mind when we created THE TOUR Championship. One was to have an (inaudible).... there appeared a time when golf just sort of drifted off and then we were back again. And every other sport has a Super Bowl or a World Series, a Stanley Cup or whatever it might be, and we set on a mission to have a conclusion to our season, something that our players could point towards, something that the media could follow and determine who really is the best player in a given year. And, of course, the vehicle was THE TOUR Championship. There are no exemptions in THE TOUR Championship. The defending champion does not get into THE TOUR Championship. It is very simply the best 30 players playing the game at the time the event comes around. It goes right down to the wire. We had Billy Andrade miss the tournament one year by less than 50 dollars. So, it is a very, very important vehicle to our players. They do look to it each year, and, of course, one of the pluses is being able to play the great golf courses. The Commissioner mentioned some of the sites we play: We've been at Pebble Beach, we've been at Pinehurst, but a very, very special one, and honestly, the most successful event we've had is right here at the Champions Golf Course. So, we are thrilled to be back here, and we know that it is very much a favorite in our players' minds and it is a true challenge of golf. We think we have accomplished these goals. The best players do play here, its positioned at the end of the year. So we now have the conclusion that we hoped to have. Our television audience waits anxiously for this event every year. Many of our yearend awards are determined right here at THE TOUR Championship: Player of the Year, leading money winner, all of the things our players really look forward to. And even though our purses are increasing significantly, this is an event where the money almost doesn't matter. The goal they are really looking for is to be the best player in their sport, and that will be determined here. Perhaps the most important thing from a business point of view, to make this all available, is the support of a presenting sponsor. It is not just the financial support; it is not only the dollars that flow in to make the operation of the tournament work, to get the national television advertising where we would like it, but it is the broad-reaching effort of a presenting sponsor in the areas of promotion, community involvement and fulfilling some of the things that we have as goals at the PGA TOUR. One common denominator we see is community involvement, helping the less fortunate. These are really the goals and objectives of both organizations, the PGA TOUR and Dynegy. Obviously, you know better than we who don't live in Houston that Dynegy is an extremely successful company. Their 20-plus years of doing business here, coupled with their far-reaching arm into the energy and communication business, make it a perfect marriage for us. We think that the PGA TOUR and Dynegy are both regarded at the highest levels in their particular areas of business. And again, we think the two organizations will get along together. What Chuck has demonstrated here in Houston is that he expects very high standards. His involvement with the hockey team, involved with a very exciting football team coming to Houston, are just evidence that he expects performance at that level. We spoke very briefly this morning, and we made a commitment to him; that our goal is to do the same thing in another sport. It is something we will work very hard for. We know that we have set some very high standards, and we understand that Dynegy's standards are right there, if not only a little bit higher than that. So, we look forward to that relationship. What I would like to do is I would like Chuck to come up here for some comments.

CHUCK WATSON: Good morning and thank you for those kind words about Dynegy. I would like to personally welcome you on behalf of the great State of Texas and Houston and Dynegy, as well as all of the people here at Champions, to come back for an unprecedented fourth time for THE TOUR Championship back here in Houston. Today is a pretty exciting day for me personally, since this happens to be my home course. But it really is exciting for all of the employees of Dynegy all the way around the world. To be associated with the PGA TOUR Championship is a lot of great history, and we hope to take it to another level. Today, because the Dynegy team officially joins the PGA TOUR team as presenting sponsor for this championship, we could not have picked a better location or a better partner. And I'm proud to live and work in a city, in Houston, that can attract such topnotch people and such a topnotch organization as the PGA TOUR. Events like this make Houston a better place to live and to work. And I'm proud, too, that the best golfers in the world are going to be here to experience what I get to experience here every day at Champions and living in the City of Houston. Champions Golf Club is one of the truly great golf courses in America. It's right here in our backyard. It has hosted the Ryder Cup, the U.S. Open, the U.S. Amateur, and as I mentioned now for the fourth time, THE TOUR Championship. As excited as we are to have THE TOUR Championship played right here in Dynegy's hometown or home corporate office, we are equally excited about our new relationship with the PGA TOUR. The PGA TOUR reaches fans from all walks of life and all around the world. Today's announcement is good for the Houston area and for Dynegy as the leading energy and communications solutions provider, we are always looking for new and better ways to expand our competitive reach and to raise awareness of our company. THE TOUR Championship helps us accomplish both those objectives. THE TOUR Championship is distributed internationally, 4exposing some 200 million households in 140 countries to the tournament and to Dynegy. You know, when I first thought about Dynegy teaming up with PGA TOUR, I was really struck by some of the similarities the PGA TOUR has with Dynegy. Both organizations clearly believe in honesty and integrity, but more importantly, they have a really deep, I think, commitment to the community. Dynegy builds and operates facilities all around the world, and our commitment is try to make communities where we operate, and where we live and our employees live, a better place than where we found them. And I think the same is true for the PGA TOUR. Just look at what THE TOUR Championship has meant to Houston. In the last two TOUR Championships, in '97 and '99, they contributed some $2.7 million to Houston area affiliates, through the Houston Golf Association. In the coming weeks, you're going to hear a lot more about this tournament. Dynegy does want to take this to another level as a presenting sponsor of THE TOUR Championship, and we have some pretty great things planned, and as usual, we'll probably drop them out over the next several months, because I think that just builds the excitement. So, Henry, really, on behalf of everybody here at Houston, and certainly all of the people at Dynegy, we are thrilled with this relationship. We are going to be around for a while. We are going to make this a really exciting place, and I can't help but be completely thrilled about starting this relationship right here in Houston, Texas, with Dynegy and my home course, Champions Golf Club.

MARLENE LIVAUDAIS: Thank you, Mr. Watson. We would be happy to entertain any questions now. If there are any questions from the media, the audience?

CHUCK WATSON: I want to know, Jackie, how you can improve my handicap? (Laughter.)

JACKIE BURKE: Having been a member of the club, he's definitely got the reins, got our attention so we've got to put the carpet out. I'm going to forgive him for his handicap. I will be working on his game. But we're happy to have Chuck in this position. We have a very competitive club here. We have 500 members that are single-digit handicaps. This company is a very competitive company, so he came to the right spot. The Houston Golf Association -- there's none better in the country than this group of guys -- and the community they raised last year, it was 500 or 410 outings (inaudible) they raised $20 million. The amateur golfers of this city raised $20 million for charity in this community with just little one-day outings and things of that kind. I'll get Chuck to get baseball and football up in those categories, and we'll be at the same level, Chuck. Houston is a terrific city. I think we've got the golf course here that the guys like to play. We've got a new one coming up over there that is going to be a good one. Golf is great in Houston. We're building a lot of courses, so everybody can get to play. And I just expect it is a great time for golf, and I'm glad to be a part of it and glad to be here at Champions. Thank you, Chuck.

MARLENE LIVAUDAIS: Mr. Watson and Mr. Hughes will be available for one-on-one interviews after we finish here. So if anyone would like to see Ana Leaird, our media director, she will help you with that, and we thank you for coming and we hope to see you back for the tournament.