News Release

June 15, 2004

PNM Again Named Best Company in Nation for Hispanics

FORTUNE'S RANKINGS   Best U.S. Companies for Hispanic Employees PNM Resources Southern California Edison Colgate-Palmolive McDonald's Safeway Union Bank of California BellSouth SBC Communications PG&E Corp. Abbott Laboratories Companies with Largest Number of Minorities Among Top 50 Paid Employees Fannie Mae Applied Materials PNM Resources United States Postal Service Abbott Laboratories Companies with the Largest Percentage of Minorities Among Officials and Managers Yum! Brands Union Bank of California McDonald's Hyatt PNM Resources Best U.S. Companies for Minority Employees McDonald's Fannie Mae Sempra Energy Union Bank of California Denny's U.S. Postal Service PepsiCo Southern California Edison Freddie Mac PNM Resources

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Albuquerque: For the sixth 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 10th best overall for minority employees.

In its June 28 issue, on newsstands next week, the magazine also ranks PNM the third best company with the largest number of minority employees among its 50 highest paid. PNM also ranked fifth in the nation for having the largest percentage of minorities in management positions.

"We're committed to attracting and retaining a diverse, talented work force," said Alice Cobb, PNM senior vice president of People Services and Development. "This national ranking further reflects the satisfaction among PNM employees. In a recent employee survey, 69 percent of our employees ranked PNM as a great place to work."

PNM is the only New Mexico-based company to make this year's FORTUNE list.

View the entire FORTUNE list (fortune.com)

Hispanics make up more than 40 percent of PNM's work force, with minorities comprising more than 48 percent of all employees.

Cobb said a driving force behind the company's success with minority employees is its increasing appeal as an employer within New Mexico and the Southwest. One main reason, she said, is PNM's benefits.

"We continue to add to the variety of benefits we offer including wellness education and health management," Cobb said. "While many other companies are reducing benefits, PNM's package is growing. We offer employees benefits that are competitive regionally and nationally."

During 2003, PNM increased the company's 401(k) match for employees nearing retirement; introduced an employee stock purchase plan with a 15 percent discount; and increased the amount the company pays for employees to pursue degrees. Today, employees are reimbursed as much as $5,250 annually for tuition, books and fees.

"We also support PNM employee organizations, such as LLAVE and the Women's Professional Organization, to engage and prepare them for leadership roles in our company," Cobb said.

In addition, for the past three years PNM has sponsored an NAACP job fair in Albuquerque.

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 2003 data.

PNM data provided to FORTUNE showed that:

• 48.5 percent of PNM's work force is minority.
• Half of all new employees hired in 2003 were minorities.
• Four Hispanics and five women serve as officers of PNM.
• Minorities comprise almost 34.9 percent of PNM's management.
• Three Hispanics and three women serve on 10-person PNM Resources Board of Directors.
• 4.5 percent of the work force is Native American.
• 12 of the 50 top paid employees are minorities.