Innovative energy project represents the largest single investment in Southwest Louisiana and represents a milestone in the use of Gulf Opportunity Bonds

Mr. David Darbone, President of the Board of Commissioners for the Lake Charles Harbor and Terminal District, announced today that the Port of Lake Charles (“Port”) successfully issued and sold on behalf of Lake Charles Cogeneration, LLC $1.0 billion in GO Zone Bonds allowing for the development of a $1.6 billion petroleum coke gasification plant project on 70 acres of Port-owned property adjacent to the Port''s existing Bulk Terminal No. 1 facility.

About the project

Lake Charles Cogeneration LLC, (“LCC”) is developing a petroleum coke fueled polygeneration project to produce several industrial gases and chemicals for sale to utilities and industrial companies located in Louisiana. LCC is an indirect wholly owned subsidiary of Leucadia National Corporation (NYSE – LUK). Construction of the project is expected to commence upon completion of pending permitting, regulatory approval, design engineering, and the satisfaction of certain other conditions of the financing agreements.

The LCC project represents a capital investment of $1.6 billion and will have state of the art environmental controls using proven GE gasification technology. The project will capture CO2 for use in enhanced oil recovery applications in Louisiana and the Gulf Coast. The project received a $1.0 billion Gulf Opportunity Zone Bond allocation from the Louisiana State Bond Commission in May 2007 and has received broad support from Louisiana civic and business leaders.

The gasification plant is expected to take four years to complete including a three year construction period. Construction is expected to start in early 2009. It is anticipated there will be approximately 3,000 jobs during construction and upwards of 150 operational jobs once the plant is completed and operating along with a significant number of companies supplying maintenance services.

“With this successful bond sale, the Board views sustained and positive growth in the Lake Charles area,” said Board President David Darbone. “We believe this is the largest single capital project ever for Calcasieu Parish. As an economic engine for Southwest Louisiana, the Port sees this project as a continuation of new and exciting economic development slated for our region,” Darbone went on to say. “The Port supports all of the development activities that LCC has embarked on and we look to the day when we can announce construction has begun at the site,” said Darbone.

About Gasification

Gasification offers the cleanest, most efficient method available to produce synthesis gas (“syngas”) from low or negative-value carbon-based feedstocks such as coal, petroleum coke, high sulfur fuel oil or materials that would otherwise be disposed as waste. The syngas can be used in place of natural gas to generate electricity, or as a basic raw material to produce chemicals and liquid fuels.

The project will gasify petcoke to produce substitute natural gas (“SNG”) and hydrogen (and other products) for sale to utilities and industrial customers. SNG is pipeline quality gas and is indistinguishable from natural gas produced from regional geological formations. Construction and fabrication services are to be provided by the Turner Industries Group, LLC of Baton Rouge, LA with design engineering and procurement services being provided by KBR Corporation of Houston, TX. GE Energy (USA) LLC is scheduled to provide the primary technology mover for the project through its proven quench gasification technology.

The plant will use 7,500 tons per day of petroleum coke as its fuel source to convert the petroleum coke into SNG. The Port will provide the handling and storing of the petroleum coke for the plant and will make a $40 million upgrade of its fuel handling system funded by LCC as part of the project overall cost. The SNG produced from the petroleum coke will be transported through third party-owned pipelines to Louisiana utilities and other industries which use large amounts of the SNG to produce electricity and other products. Long term contracts to be negotiated with utilities will provide a hedge against volatile natural gas prices and provide diversity to Louisiana purchasers of electricity by using a low grade solid fuel such as pet coke to produce SNG.

About the Gulf Opportunity Zone Act

On December 16, 2005, House Resolution 4440 – “Gulf Opportunity Zone Act of 2005” – was enacted by the United States Congress. This legislation provides income tax incentives for both individuals and companies doing business in certain declared hurricane disaster areas (“Zones”). The purpose for the tax incentives is to enhance rebuilding and revitalizing communities along the Gulf Coast. This legislation permits an entity, such as the Port of Lake Charles, to issue tax-exempt bond financing at very low interest rates to help rebuild the economy in the Zone. Proceeds can be used to pay for acquisition, construction, reconstruction, and renovation of commercial developments such as the gasification plant and other similar job creating commercial projects.

Funding of the gasification project qualifies for GO Zone Bond funds, and the credit of Lake Charles Cogeneration will secure the payment of the GO Zone Bonds. The governor, the Louisiana Department of Economic Development (LED), and the Louisiana State Bond Commission approved the issuance of the GO Zone Bonds in 2007 with strong support from the Calcasieu Parish leaders including the legislative delegation. Lake Charles Cogeneration has had a number of discussions with Governors Jindal and Blanco as well as LED officials regarding approval of the $1.0 billion allocation for the project and looks forward to working with the Jindal administration as the project reaches the construction phase.

The Port engaged the services of the law firm of Jones, Walker, Waechter, Potievent, Carrére & Denégre, L.L.P. as bond counsel for the issuance of the bonds. Remarketing Agents for the bonds are Citigroup Global Markets, LLC and Morgan Keegan & Company, Inc. The trustee bank for the bonds is The Bank of New York Trust Company, N. A.

“I would like to take this opportunity to thank the Board of Commissioners and Staff at the Port of Lake Charles for their patience and cooperation in working with us through this very lengthy and involved process. We look forward to continuing to work with the people at the Port as well as the community and state officials in bringing this project, along with its many jobs and benefits to our local industrial base, to fruition,” said Mr. Rick Richard, a Lake Charles resident, who has worked with the Port on behalf of LCC.

The land lease agreement between the Port and LCC provides for an initial forty (40)-year primary term and two (2) additional ten (10)-year options.

Economic Impact of the Project

As part of its Bond proposal, LCC secured an independent economic impact analysis of the project prepared by David E. Dismukes, Ph.D, an energy economics professor at Louisiana State University, Baton Rouge, Louisiana. Dr. Dismukes projects the project represents an estimated economic impact of $405 million for the local economy, $1.4 billion total direct and indirect impact for the Louisiana economy; an estimated total direct and indirect employment impact of 1,912 jobs for local economy, and 12,226 total jobs for Louisiana. To see the complete study by Dr. Dismukes, visit the Port of Lake Charles website at http://www.portlc.com/.

During the 36 month construction period approximately 3,000 direct construction jobs will be generated and the project expects to create upwards of 150 new skilled jobs at the plant with additional contract services being provided from regional suppliers.

State Senator Willie Mount, District #27, said of the announcement, “I am so pleased to see that the parties involved have come together and advanced this project to the point at which it is today. This has been a long process and the hard work getting to this point will pay off in economic benefits to the citizens and communities of Southwest Louisiana. Through the number of good jobs, facility infrastructure, and proactive responses of the Port of Lake Charles and the State of Louisiana, a strong message is being sent to both domestic and international industry that Southwest Louisiana is a great place to do business.”

Commissioner Dale Sittig of the Louisiana Public Service Commission said of the project, “Since natural gas prices have become volatile and expensive, the PSC has been searching for ways to stabilize the price of natural gas for Louisiana consumers. This project offers a long term supply of natural gas at reasonable prices in an environmentally acceptable process. The economic impact of this project, the jobs created, and the industry it will support, will provide long-term benefits to our ratepayers. I fully support the efforts of LCC to bring this project to my District and look forward to receiving their filing at the Public Service Commission”