News Release

Jan. 3, 2002

Customers, Employees and Retirees Push
Aid Fund Contribution Above $160,000

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NEWS MEDIA CONTACT Susan Sponar Telephone: (505) 241-2768

Albuquerque: Building on an initial company commitment of $100,000, and a promise to match additional donations through 2001, customers and current and retired employees of PNM have helped raise an additional $61,382 for The Power of America Fund.

PNM will send a total of $161,382 to the New Orleans-based fund, which was established by several energy companies and their employees to help children of September 11 attack victims with future educational expenses.

The fund, currently at $3.1 million, will be administered by Educational Testing Services of Princeton, N.J., which administers several other corporate scholarship funds. More information on the fund is available online at www.powerofamericafund.org.

"After we announced we would match customer, employee and retiree donations to this fund, we heard from customers throughout the state," said PNM Chairman, President and CEO Jeff Sterba. "That response, combined with great support from past and present PNM employees, has resulted in a substantial New Mexico contribution to this national effort."

After the attacks in September, PNM announced it would give $100,000 to the fund and match customer contributions through 2001. In addition, the non-profit PNM Foundation agreed to match donations by PNM retirees and the company's 2,660 employees, up to $1,000 each.

Sterba said the donation is consistent with PNM's broader support of education initiatives here in New Mexico. PNM and the PNM Foundation give close to $2 million a year to non-profit community organizations in New Mexico, and education is a key focus of that annual commitment.