News Release

July 16, 2001

PNM Foundation Receives $5 Million From PNM Shareholders

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Albuquerque: The PNM Foundation today announced receipt of a $5 million endowment that will allow it to make grants totaling $600,000 to New Mexico schools and non-profit organizations every year.

"This generous contribution from PNM shareholders will benefit charitable organizations throughout the state and help strengthen the fabric of our schools and communities," said Barbara Barsky, president of the PNM Foundation, which is a separate, non-profit corporation. "Of course, this additional funding from the PNM Foundation is in addition to the $1.5 million PNM as a company provides annually to support community activities and events."

The $5 million endowment, which does not involve any customer monies, nearly doubles the current assets of the foundation.

"The most powerful aspect of this increase in funding is our new ability to take the PNM Classroom Innovation Grants statewide," said Diane Harrison Ogawa, PNM Foundation executive director.

The PNM Classroom Innovation Grants give teachers up to $3,000 to use in their classrooms to implement creative instructional ideas. During the 2001-02 school year, 40 teachers will be carrying out 26 programs funded by the grants.

"The following school year, we will be able to double our effort and fund nearly $110,000 worth of great ideas generated by teachers in our state," said Ogawa.

The endowment will also be used to fund programs in the Foundation's other focus areas, including:

Matching employee and retiree donations to any non-profit group in New Mexico, or any educational organization nationally

Grants to non-profit organizations throughout the state that support education or social service concerns

Funding sustainability grants that will allow non-profit to endow their own programs

The PNM Foundation is the largest New Mexico corporate foundation and is completely funded through shareholder contributions. The Foundation was formed in 1983 with $2.3 million from PNM shareholders. In 2000, the Foundation distributed more than $300,000 in grant monies.