“Completing this spin-off was a key element in transforming our business portfolio,” said Peabody Chairman and CEO Gregory H. Boyce. “Peabody and Patriot will both benefit by a distinct business focus and growth opportunities to build shareholder value. Peabody remains focused on high-margin, high-growth markets by expanding globally and building on our leading U.S. position in the Powder River Basin, Colorado and the Midwest.”

“We see a very strong outlook for Patriot Coal,” said Richard M. Whiting, president & CEO, Patriot Coal Corp. “Our proven management team is focused on maximizing the value of Patriot's portfolio of assets and growing through sound commercial transactions. With Patriot's diverse asset base and experienced workforce, we believe we are well-positioned in the robust markets for Eastern U.S. steam coal. Further, we expect our high-quality metallurgical coal position to serve us well as global demand in the steel industry continues to expand.”

Patriot is a leading producer of metallurgical and steam coal in the Eastern United States, with 2006 sales of 24 million tons and reserves totaling more than 1.2 billion tons. Patriot has a diverse portfolio of operations, with a leading metallurgical coal position serving U.S. and global steel producers, a Northern Appalachia and Illinois Basin coal presence serving America's highest concentration of scrubbed generating plants, and low sulfur Central Appalachian steam coal supplies. Peabody Energy is the world’s largest privatesector coal company.