Power Engineering - MDU Resources acquires minority interest in Trinidad Power project

BISMARCK, N.D., March 19, 2004 -- MDU Resources Group, Inc. announced that its subsidiary, Centennial Energy Resources International Inc, acquired a 49.9 percent ownership interest in Carib Power Management LLC.

Centennial Energy Resources International is a subsidiary of Centennial Energy Resources LLC, the independent power production unit of MDU Resources.

Carib Power Management indirectly owns InnCOGEN, Limited, a 225 megawatt natural gas-fired electrical generation facility located in The Republic of Trinidad and Tobago. InnCOGEN commenced operation in September 1999. It is the newest and lowest-cost provider of electricity in Trinidad and Tobago.

The facility consists of three natural gas-fired combustion turbines operating in a simple cycle mode. It is operated and maintained by a third-party contractor.

Financial details about the investment were not disclosed. The project is anticipated to be accretive to earnings per share in 2004.

"We began expanding into the international electrical generation market two and a half years ago," said Martin A. White, chairman of the board, president and chief executive officer of MDU Resources. "It has been a successful endeavor because of the stringent review processes and controls we have in place to evaluate potential acquisitions. When we complete an acquisition, our investors can be assured that it has been analyzed in a careful, thoughtful and methodical manner."

"This investment fits well with our strategic plan to diversify and grow our international operations," said Paul Gatzemeier, vice president and general manager of Centennial Energy. "We're seeking diversity in the type of natural resource-based projects that we pursue as well as diversity in countries, currencies and long-term customers. The InnCOGEN investment meets these objectives."

InnCOGEN has 26 years remaining on its power purchase agreement with the Trinidad and Tobago Electric Commission, the governmental entity responsible for the transmission, distribution and administration of electrical power to the national electrical grid of Trinidad and Tobago. The contract is backed by a full sovereign guarantee from the Trinidad and Tobago Government which has investment grade ratings of BBB/Baa3 from Standard & Poor's and Moody's, respectively.

Carib Power Management is an affiliate of Power Management Company LLC, headquartered in New York. Power Management Company led the acquisition of Continental Energy Services Inc., formerly the independent power business of the Montana Power Company, and is the managing shareholder of CES Acquisition Corp. Through the partnership, Power Management Company and its affiliated shareholders indirectly own 50.1 percent of InnCOGEN.

MDU Resources Group, Inc., a member of the S&P MidCap 400 Index, provides value-added natural resource products and related services that are essential to our country's energy and transportation infrastructure. MDU Resources includes natural gas and oil production, construction materials and mining, electric and natural gas utilities, natural gas pipelines and energy services, domestic and international independent power production and utility services. For more information about MDU Resources, see the company's Web site at www.mdu.com or contact the investor relations department at investor@mduresources.com.

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