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Subject: Avista Corp/Nez Perce Tribe Reach Settlement Agreement
Date: Fri, 15 Jan 1999 14:57:24 EST
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Avista Corp/Nez Perce Tribe Reach Settlement Agreement

SPOKANE, Wash., Jan. 15 /PRNewswire/ -- Avista Corp. (NYSE: AVA), formerly
known as Washington Water Power, and the Nez Perce Tribe today announced they
have reached and approved a final settlement agreement resolving litigation
between the parties regarding tribal claims for damages for anadromous fish
losses on the main stem and south fork of the Clearwater River.

Through mediation and cooperation, representatives of the Nez Perce Tribe and
Avista successfully negotiated an agreement to resolve the claims.  In
addition, the parties have fostered a relationship and have created a
framework to collaborate on future issues of mutual interest.

The settlement agreement concludes eight years of litigation and mediation.
Thirty days after the effective date of the settlement agreement, the company
will pay the Nez Perce Tribe $2.5 million, followed by 44 annual payments of
$835,498.  This resolves not only the lawsuit but also settles issues
concerning utility taxes, tribal employment rights fees and rights-of-way.

Nez Perce Tribal Executive Committee Chairman, Samuel N. Penney, said that
"the settlement agreement reflects the deep interest the Nez Perce Tribe has
in the anadromous fish resources in our area and goes even farther to insure
that we have a positive relationship with Avista Corp. in the future."

Penney noted that the agreement and the payments it provides for will be a
legacy left for future Executive Committees and tribal members.

"It is particularly important to us because it builds upon the interest of
both parties and reflects what can be made possible when goodwill is used to
resolve differences," Penney added.

"The agreement provides a foundation for a long-term positive, mutually
beneficial relationship between the company and the Nez Perce Tribe, in
addition to avoiding lengthy and costly litigation," said Tom Matthews, Avista
Corp. board chairman and chief executive officer.  "Avista is pleased that a
settlement has been reached with the Tribe."

The Nez Perce Tribe filed a lawsuit on December 6, 1991, against Avista Corp.
in the United States District Court for Idaho.  In the lawsuit the Tribe
alleged that anadromous fish runs in locations where the Tribe has treaty
reserved fishing rights were destroyed or diminished by the maintenance and
operation of the Lewiston and Grangeville dams by Avista. The tribe sought
money damages for these losses.

The Grangeville dam was constructed in 1903 by Grangeville Electric Power and
Light Company.  Avista acquired the dam in 1937 and operated the dam until it
was demolished in 1963.  The Inland Power and Light Company constructed the
Lewiston dam in 1927.  The company acquired that dam in 1937 and operated it
until it was destroyed in 1973.

In response to the lawsuit, Avista denied all of the Tribe's claims and on
November 21, 1994, filed a motion for summary judgment with regard to all of

the claims made.  On March 28, 1996, United States District Court Judge B.
Lynn Winmill entered an order granting Avista motion for summary judgment.

On April 24, 1996, the Nez Perce tribe filed a Notice of Appeal of the
District Court's decision in the United States Court of Appeals for the Ninth
Circuit.  On October 1, 1996, the Nez Perce Tribe and Avista agreed to enter
into a mediation process to explore settlement of the litigation.  During the
mediation process, the parties spent considerable time in exploring each
others' interests and in identifying overlapping interests.

Avista Corp. is a diversified energy services company with utility and
subsidiary operations located throughout the United States.  Avista Corp. also
operates Avista Capital, which owns all of the company's non-regulated energy
and non-energy businesses.  Avista Capital companies include Avista Energy,
Avista Power, Avista Advantage, Avista Labs, Avista Fiber, Avista Development
and Pentzer Corporation.  Avista Corp. stock is currently traded under the
ticker symbol "AVA."  For more information about Avista Corp. and its
affiliate businesses, visit the corporate website at www.avista.com.

The Nez Perce Tribe is a federally recognized Indian tribe that originally
owned and occupied over 13.5 million acres of land including all of what is
now north central Idaho, north eastern Oregon and south eastern Washington.
The tribe is party to three treaties and one agreement with the United States.
In the first treaty in 1855, certain rights, including fishing rights, were
reserved and a reservation consisting of some 7.5 million acres was
established as a homeland for the tribe.  The current Nez Perce Reservation,
consisting of some 750,000 acres, was established by the 1863 treaty.

01/15/99 14:56 EST http://www.prnewswire.com


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