Washington Water Power Approves Restructuring Plan

Washington Water Power has devised a restructuring plan that will focus on strengthening the company's financial position and provide needed capital to help fund growth initiatives and new investment opportunities

The restructuring calls for a 61% reduction in the company's annual common stock dividend, from $1.24 per share to 48 cents per share. The reduction will be effective with the payment of the common stock cash dividend expected on December 15, 1998.

Recognizing the impact the dividend reduction could have on shareholders--particularly those with an income orientation -- the company also approved development of an exchange offer to be open to holders of the company's common stock. Shareholders will be provided the opportunity to exchange their common shares for an equal number of convertible preferred shares.

After three years, the new-issue shares will automatically convert back to common stock on a one-for-one basis. Shareholders who choose not to participate in the exchange plan will retain their ownership in Washington Water Power common stock.

In a separate action, the company also approved Avista Corp. as its new name, effective Jan 1, 1999.

Washington Water Power is an energy services company with utility and subsidiary operations located throughout the United States.

For more information contact: Patrick Lynch, Washington Water Power. Tel: 800-758-5804.