News Release

July 2, 2003

PNM Once Again Named One of Best
U.S. Companies for Minority Employees

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NEWS MEDIA CONTACT Frederick Bermudez Telephone: (505) 241-4831 Pager: (505) 235-9706

Albuquerque: For the fifth year in a row, FORTUNE magazine has ranked PNM as the best U.S. company for Hispanic employees. The company also earned the spot of tenth best overall for minority employees.

In its July 7 issue, on newsstands this week, the magazine also ranks PNM as seventh best company for Native American employees and the company with the largest number of minority employees among its 50 highest-paid employees.

"This national ranking reflects our commitment to diversity and to having a work force that reflects our base of customers," said Alice Cobb, PNM senior vice president of People Services and Development. Minorities comprise nearly half of PNM's 2,600-member work force.

Cobb said a driving force behind the company's success with minority employees is its increasing appeal as an employer within New Mexico. "While many other companies are reducing benefits, PNM's benefits package is growing. Increasingly, that package is competitive not only regionally but nationally as well."

PNM recently increased its 401(k) match for employees nearing retirement; launched an employee stock purchase plan that allows employees to buy PNM stock at a discount; and increased the amount it will pay for employees to pursue bachelors degrees at accredited institutions.

"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," Cobb said.

PNM is the only New Mexico-based company to make this year's FORTUNE list, which is posted on the FORTUNE Web site at www.fortune.com.

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 2002 data.

PNM data provided to FORTUNE showed that:

• 3 of 10 members of the board of directors are minorities.
• 48 percent of PNM's work force is minority.
• 16 of the 50 top paid employees are minorities.
• 41 percent of PNM's work force is Hispanic.
• 35 percent of PNM's officers and managers are minorities.
• 4 percent of PNM's work force is Native American.
• 45 percent of new hires are minorities.

The FORTUNE rankings are:

Best U.S. Companies for Hispanic Employees

1. PNM
   
2. McDonald's
   
3. Pep Boys
   
4. So Cal Edison
   
5. SBC Communications
   
6. Safeway
   
7. PepsiCo
   
8. Colgate-Palmolive
   
9. Denny's
   
10. Darden Restaurants

Best U.S. Companies for Native Americans

1. DTE Energy
   
2. Denny's
   
3. So Cal Edison
   
4. Pep Boys
   
5. FedEX
   
6. Nordstrom
   
7. PNM
   
8. McDonald's
   
9. UPS
   
10. Prudential

Companies with Largest Number of Minorities Among Top 50 Paid Employees

1. PNM
   
2. Solcetron
   
3. Applied Materials
   
4. Xerox
   
5. Fannie Mae

Best U.S. Companies for Minority Employees

1. McDonald's
   
2. Fannie Mae
   
3. Denny's
   
4. Advantica
   
5. Sempra Energy
6. So Cal Edison
7. SBC Communications
8. Freddie Mac
9. PepsiCo
10. PNM

PNM is the principal subsidiary of PNM Resources, an energy holding company based in Albuquerque. PNM provides natural gas service to 441,000 gas customers and electric utility service to 385,000 customers in New Mexico. The company 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.