Dear SVMG Members:

As you may know, the Silicon Valley Manufacturing Group Board of Directors
met this morning and voted to support two Energy proposals: The Los Esteros
Transmission Facility and the Metcalf Energy Center.

Please find below the news release on SVMG's position, and an attachment
that reviews SVMG's criteria and evaluation for both projects.

Thank you for your time.

Sincerely,

Carl Guardino

Local proposals part of a comprehensive platform to meet energy needs of
Silicon Valley working families and economy

For Immediate Release:         Contact: Michelle Montague-Bruno
March 8, 2001             (408) 501-7853

This morning the Silicon Valley Manufacturing Group Board of Directors voted
in support of the proposed Metcalf Energy Center and the Los Esteros
Transmission Project to help meet Silicon Valley's need for reliable energy.
Completing a thoughtful and deliberative process the SVMG board of directors
voted to support the generating facility, which would offer 580 megawatts of
new power supply to Silicon Valley and provide enough power to service
approximately 580,000 households.  Additionally, the Los Esteros
Transmission Project, proposed for north San Jose, provides another 800
megawatts of new transmission capacity that will help bring power into the
region - an issue that caused blackouts here on June 14, 2000.
"The Silicon Valley Manufacturing Group has always been a very analytical
organization," said Dr. James Woody, president & CEO of Roche
Pharmaceuticals and chairman of the board of SVMG.  "With the energy
infrastructure projects we developed an analytical process, and a systematic
review of the Metcalf and Los Esteros proposals, recommending approval after
thoughtful consideration."
This deliberative process included the development of criteria (see
attachment) utilized by five separate working bodies in the organization
(three SVMG committees, its Working Council and the Board of Directors) to
evaluate the projects and determine a position.  The organization does not
support these two facilities as an exclusive means to fulfilling the energy
needs of Silicon Valley families and employers, and believes our energy
challenge requires the individual efforts of every Californian.
"The Silicon Valley Manufacturing Group board completed a very thoughtful
and deliberative process that supports the generation and transmission of
power in our back yard," said Carl Guardino, president & CEO of the Silicon
Valley Manufacturing Group.  "The criteria are a prism through which the
organization assesses energy infrastructure proposals.  It was agreed that
the Metcalf and Los Esteros projects would provide much needed energy to
support working families, and the economy of Silicon Valley."
Attached are the criteria utilized by the SVMG Energy Committee, SVMG Land
Use Committee, SVMG Environment Committee, SVMG Working Council and the SVMG
Board of Directors to review the energy projects.
Solving California's energy challenges is going to require steps beyond the
development of the Metcalf and Los Esteros facilities, and must include
additional generation and transmission projects throughout the region and
state.  However, an immediate solution to help get us through the summer and
beyond is for more energy conservation at the office and at home.  The
E-Energy Conservation Campaign ('E' stands for email), launched on February
7, between SVMG and Governor Davis' cabinet secretary for technology, trade
and commerce, Lon Hatamiya, is reaching out to more than four million public
and private employees to provide tips on ways to conserve power and save
money at home and at the office.  For more information on the E-Energy
Conservation Campaign, visit the SVMG Web site at www.svmg.org, and click on
the icon for the campaign.

Expressing the need for a diverse portfolio of solutions in addressing the
energy crisis, Carl Guardino will discuss everything from conservation to
generation at the upcoming Energy Summit on March 16, and co-sponsored by
San Jose Mayor Ron Gonzales, the Santa Clara County Board of Supervisors and
the Silicon Valley Manufacturing Group.
"I am proud and honored to stand with Mayor Gonzales and Supervisor Jim
Beall to co-chair an event that will look for regional solutions to help
solve the issue," said Guardino. "We support the mayor's plan for
alleviating our energy problems, and believe that a comprehensive approach
must be implemented to survive this crisis.  No matter how one feels about
specific energy projects, there is no single solution, and we need a menu of
options, including conservation, co-generation, onsite generation,
transmission and major generating facilities."
Attachment:  SVMG criteria to review generation and transmission proposals,
and how the Metcalf Energy Center and the Los Esteros Transmission project
weigh up to those criteria.

 - criteria MEC & Los esteros.doc