The key drivers behind first quarter 2009 earnings compared to 2008 were:

Lower wholesale revenue of $26.2 million or $0.15 per share primarily due to reduced generation, lower demand, and lower market prices; and

Reduced gains from the sale of emission allowances of $24.3 million or $0.14 per share; offset by

Deferral of RTO transmission, capacity, and other PJM-related costs of $23.0 million or $0.13 per share ($13.5 million relates to 2008 cost deferrals); and

Lower purchased power costs of $19.9 million or $0.11 per share primarily due to reduced purchased power volumes.

"Despite the economic challenges, the company had a successful start to 2009," said Paul Barbas, DPL President and Chief Executive Officer. "We continue to realize significant benefits through our coal optimization process, mitigating underlying increases in base fuel costs. Looking forward in 2009, we will continue to emphasize operational improvement and cost control within our electric business and remain on target to meet our 2009 earnings guidance of $2.00 to $2.30 per share."

Conference Call and Webcast

At 9:00 a.m. Eastern Time on Thursday, April 30, 2009, DPL will host a conference call and webcast to review first quarter 2009 financial results. The conference call will be available in listen-only mode for investors, media and the public by dialing 888.713.4211 for domestic participants or 617.213.4864 for international callers. The access code is 82112190. Please dial into the call at least fifteen minutes prior to the start of the call to register.

The webcast can be accessed real-time on DPL's website at www.dplinc.com. Interested parties are encouraged to visit the website at least fifteen minutes prior to the start of the webcast in order to properly register. The live webcast will be available for replay on the DPL website in the investor relations section following the conference call.

First Quarter 2009 Financial Results

Revenues decreased $1.1 million to $415.0 million for the three months ended March 31, 2009 compared to $416.1 million for the same period in 2008. This decrease was primarily the result of lower retail and wholesale sales volumes, and lower average wholesale rates partially offset by higher average retail rates and higher RTO capacity revenues.

Retail revenues increased $2.2 million resulting from higher average retail rates due largely to the continued recovery of environmental costs and the expiration of certain statutory and settlement rate discounts in 2009, largely offset by a 9% decrease in sales volume, primarily driven by the economy and milder weather.

Wholesale revenues decreased $26.2 million primarily as a result of a $5.3 million, or 15%, decrease in average wholesale market prices and a $20.9 million decrease in wholesale sales volume. The decrease in wholesale sales was primarily driven by reduced generation and lower demand.

RTO capacity revenues increased $22.2 million, offset by a $24.3 million increase in capacity costs recorded in purchased power.

                   Three Months Ended March 31,        $ in millions    2009       2008       Variance      Retail           $  320.3   $  318.1   $  2.2        Wholesale           30.9       57.1       (26.2  )   RTO Revenues        25.5       24.9       0.6        RTO Capacity        35.4       13.2       22.2       Other Revenues      2.9        2.8        0.1        Total Revenues   $  415.0   $  416.1      ($1.1  )    -------------------------------------------------------------------------------  

Fuel Costs, which include coal, gas, oil, and emission allowances, increased $19.5 million, or 32%, for the three months ended March 31, 2009 compared to the same period in 2008, primarily due to a $24.3 million reduction in gains realized on emission allowance sales. Remaining fuel costs decreased $4.8 million due to increased gains on coal sales of $17.5 million and reduced internal generation, partially offset by a $19.4 million increase in average fuel prices.

                        Three Months Ended March 31,             $ in millions         2009         2008          Variance      Coal                  $  80.9      $  83.9          ($3.0  )   Natural Gas              3.3          2.3           1.0        Oil                      (0.6  )      2.2           (2.8   )   Emission Allowances      (2.2  )      (26.5  )      24.3       Total Fuel Costs      $  81.4      $  61.9       $  19.5        -------------------------------------------------------------------------------  

Purchased Power costs decreased $23.3 million for the three months ended March 31, 2009 compared to the same period in 2008. On February 19, 2009, the Public Utilities Commission of Ohio (PUCO) approved DP&L's request to defer transmission, capacity, and other PJM-related charges consistent with the provisions of Ohio Senate Bill 221 (SB 221). The decrease in purchased power costs was due primarily to the PJM-related cost deferral, discussed above, of $23.0 million, of which $13.5 million related to 2008.

Additionally, purchased power volumes and average market rates were $15.6 million and $4.3 million lower, respectively, compared to the same period in 2008. These decreases were partially offset by higher RTO capacity costs of $24.3 million.

                                    Three Months Ended March 31,        $ in millions                     2009          2008      Variance    Purchased Power                   $  15.7       $  35.6   ($19.9  )   RTO Charges                          30.6          35.3   (4.7    )   RTO Capacity                         36.4          12.1   24.3        Deferral of RTO related charges      (23.0  )      -      (23.0   )   Total Purchased Power             $  59.7       $  83.0   ($23.3  )    -------------------------------------------------------------------------------  

Gross margin increased $2.7 million, or 1%, to $273.9 million for the three months ended March 31, 2009 compared to the same period in 2008.

Operation and maintenance expense increased $14.6 million, or 23%, for the three months ended March 31, 2009 compared to the same period in 2008. This variance was primarily the result of higher plant production costs of $4.5 million due largely to costs associated with an unplanned outage and costs associated with the operation of flue gas desulfurization (FGD) and selective catalytic reduction (SCR) equipment; a $3.5 million increase in outside service costs primarily related to non-recurring costs associated with energy management activities; a $2.1 million increase in the Universal Service Fund (USF) rate rider related to assistance for low-income retail customers; and higher employee benefits and pension expenses of $2.8 million.

Depreciation expense for the three months ended March 31, 2009 increased $2.7 million compared to the same period in 2008 primarily as a result of higher asset balances due largely to the completion of the FGD projects.

General Taxes expense increased $2.3 million for the three months ended March 31, 2009 compared to the same period in 2008 primarily due to higher property taxes resulting from higher assessed property values and increased tax rates.

Amortization of Regulatory Assets expense decreased $1.2 million for the three months ended March 31, 2009 compared to the same period in 2008 primarily due to the 2004 and 2005 storm costs being fully recovered in the third quarter of 2008.

Interest expense for the three months ended March 31, 2009 increased $0.7 million, or 3%, compared to the same period in 2008 resulting primarily from lower capitalized interest of $4.4 million in 2009 due largely to the completion of the FGD projects at Stuart Station. This increase was partially offset by a $1.6 million reduction due to the redemption in May 2008 of DPL's $100 million 6.25% Senior Notes and lower interest rates on DP&L's variable rate debt.

Income Taxes for the three months ended March 31, 2009 decreased by $9.0 million, or 20%, compared to the same period in 2008, primarily reflecting a decrease in pre-tax book income combined with a decrease in the effective tax rate resulting from the phase-out of the Ohio Franchise Tax.

Liquidity and Cash Flow

DPL's cash and cash equivalents totaled $26.6 million at March 31, 2009, compared to $62.5 million at December 31, 2008, a decrease of $35.9 million. The decrease in cash and cash equivalents was primarily attributed to the retirement of $175.0 million of long-term debt, $50.2 million of capital expenditures, $32.1 million of dividends paid on common stock, and $15.9 million used to repurchase outstanding stock warrants, partially offset by a $150.0 million borrowing from DP&L's existing $220 million revolving credit facility, cash generated from operating activities of $75.6 million; $6.7 million from restricted funds drawn to fund pollution control capital expenditures and $5.0 million from the maturity of a short-term investment. At March 31, 2009, DPL had $7.8 million in restricted funds held in trust to fund pollution control capital expenditures.

On April 21, 2009, DP&L entered into a new $100 million unsecured revolving credit agreement with a syndicated bank group. The new agreement is for a 364-day term expiring on April 20, 2010.

Construction additions were $29.8 million and $46.4million during the three month periods ended March 31, 2009 and 2008, respectively, and are expected to approximate $150 million in 2009. Construction additions in 2009 are expected to be financed with a combination of cash on hand, short-term financing, and cash flows from operations. Capital projects are subject to continuing review and are revised in light of changes in financial and economic conditions, load forecasts, legislative and regulatory developments and changing environmental standards, among other factors. For the period 2009 through 2011, DPL is projecting to spend an estimated $475 million on capital projects.

Electric Security Plan (ESP)

On February 24, 2009, DP&L filed a Stipulation Agreement (Stipulation) with the PUCO on its ESP filed October 10, 2008, as required by SB 221. The Stipulation was signed by the PUCO staff, the office of the Ohio Consumers Counsel, and other intervening parties and among other things, extends DP&L's rate plan through 2012, adjusts its fuel recovery mechanism beginning in 2010, and provides for the recovery of certain SB 221 compliance costs. Approval of the Stipulation is pending before the PUCO.

About DPL

DPL Inc. (NYSE:DPL) is a regional energy company. DPL was named one of Forbes' "100 Most Trustworthy Companies" in 2009.

DPL's principal subsidiaries include The Dayton Power and Light Company (DP&L); DPL Energy, LLC (DPLE); and DPL Energy Resources, Inc. (DPLER). DP&L, a regulated electric utility, provides service to over 500,000 retail customers in West Central Ohio; DPLE engages in the operation of merchant peaking generation facilities; and DPLER is a competitive retail electric supplier in Ohio, selling to major industrial and commercial customers. DPL, through its subsidiaries, owns and operates approximately 3,700 megawatts of generation capacity, of which 2,800 megawatts are low cost coal-fired units and 900 megawatts are natural gas and diesel peaking units. Further information can be found at www.dplinc.com.

Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Matters discussed in this press release that relate to events or developments that are expected to occur in the future, including management's expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters constitute forward-looking statements. Forward-looking statements are based on management's beliefs, assumptions and expectations of future economic performance, taking into account the information currently available to management.