News Release

June 25, 2002

FORTUNE: PNM Once Again Best U.S. Company for Hispanic Employees

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

Albuquerque: For the fourth year in a row, FORTUNE magazine has ranked PNM as the best U.S. company for Hispanic employees.

In its July 8 issue, on newsstands later this week, the magazine also ranks PNM as the sixth best U.S. company overall for minority employees, 10th best company for Native American employees, fourth best company for managerial diversity, and third best company for diversity on a board of directors.

PNM is the only New Mexico-based company to make this year’s FORTUNE list, which is posted on FORTUNE’s Web site.

“Our entire work force should be proud of this accomplishment,” said Jeff Sterba, PNM chairman, president and CEO. “This national ranking reflects our commitment to diversity and to our business goals and strategies.”

“We also are fortunate to have employee organizations such as LLAVE, the Hispanic employee group, and the Women's Professional Organization to help us recruit new employees and prepare them for leadership roles in our company,” he said.

Sterba pointed to several PNM programs that encourage employee recruitment and retention and help create “a corporate culture that not only values but also embraces diversity.”

These include:

• Aggressive leadership development programs, including a CEO aide program and months-long leadership classes for promising employees;
• Extensive supervisory training, so that managers and supervisors understand the company’s commitment to diversity;
• Tuition reimbursement for employees seeking a bachelor’s degree at an accredited institution; and
• An expanding college internship program with a focus on training and recruiting talented engineering students.

The FORTUNE study evaluated companies responding to survey questions on diversity of work force, management diversity, compensation, vendor contracts, and other factors. The study was based on 2001 data.

Best U.S. Companies for Hispanic Employees

1. PNM Resources*
2. Southern California Edison
3. McDonald’s
4. BellSouth
5. Levi Strauss

Best U.S. Companies for Minority Employees

1. Fannie Mae
2. Sempra Energy
3. Advantica
4. SBC Communications
5. McDonald’s
6. PNM Resources*

* PNM Resources is an energy holding company based in Albuquerque and formed in 2001. PNM, its principal subsidiary, is the organization previously ranked on FORTUNE’s annual diversity list.

PNM is a combined electric and gas utility serving approximately 1.3 million people in New Mexico. The company, a wholly owned subsidiary of PNM Resources, also sells power on the wholesale market in the Western U.S. PNM Resources stock is traded primarily on the NYSE under the symbol PNM. For more information, see the company's website at www.pnm.com.