BALTIMORE, Jan. 17 -- Constellation Energy (NYSE: CEG) announced today that its subsidiary, Constellation NewEnergy, has signed a two-year fixed-price power supply contract with KB Toys' locations in Western Pennsylvania. The contract, which extends through January 2009, is in addition to CNE contracts with KB Toys in other regions, including New York and Illinois. Mall-based KB Toys, one of the largest toy retailers in the U.S., operates about 640 stores. KB Toys worked with its energy procurement partner, The Loyalton Group, to conduct an electricity procurement bid and after careful consideration selected Constellation NewEnergy as its electricity supplier.

"KB Toys is one of the most well-known toy stores in the United States," said Martha Duggan, vice president business development for Constellation NewEnergy's Mid-Atlantic region. "We are happy to be working with both KB Toys and The Loyalton Group and to be able to provide KB Toys with savings in the highly competitive Penn Power territory."

"We are pleased that Constellation NewEnergy was able to offer a solution that meets our unique electricity needs," said Dennis R. Frieri, manager of property and energy services of KB Toys Stores. "We see great value in working with energy professionals who will help us manage our electricity supply costs on an ongoing basis."

Constellation NewEnergy, a member of Constellation Energy (NYSE: CEG), is a leading competitive supplier of electricity, natural gas and energy-related services to commercial and industrial customers throughout North America. Constellation NewEnergy operates in all competitive energy markets throughout Canada and the United States, providing products that enable customers to effectively manage and control energy costs. Constellation NewEnergy’s regional expertise, coupled with its national presence, provides customers with customized energy products and services while leveraging the assets of one of the strongest integrated energy companies in North America. Constellation NewEnergy, based in Baltimore, serves more than 10,000 commercial and industrial customers throughout 31 states and 3 Canadian provinces representing more than 15,000 megawatts of peak load and more than 300 billion cubic feet of annual natural gas consumption.

Constellation Energy, a FORTUNE 200 company based in Baltimore, is the nation’s largest competitive supplier of electricity to large commercial and industrial customers and the nation’s largest wholesale power seller. Constellation Energy also manages fuels and energy services on behalf of energy intensive industries and utilities. It owns a diversified fleet of more than 100 generating units located throughout the United States, totaling approximately 12,000 megawatts of generating capacity. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland. In 2004, the combined revenues of the integrated energy company totaled $12.5 billion.