NWEC Northwestern (MM)

SIOUX FALLS, S.D., March 18 /PRNewswire-FirstCall/ -- NorthWestern Corporation d/b/a NorthWestern Energy (NASDAQ:NWEC) today announced that a settlement has been reached that would resolve the litigation related to Magten Asset Management's ("Magten") claims in NorthWestern's Chapter 11 bankruptcy case. NorthWestern has filed a motion with the U.S. Bankruptcy Court for the District of Delaware (the "Motion") for an order authorizing and approving a settlement agreement by and among, inter alia, Northwestern, Magten, Law Debenture Trust Company of New York ("Law Debenture") and the Plan Committee. The Motion will be heard along with a separate motion to approve an agreement with the Plan Committee providing, among other things, for the reimbursement of certain of NorthWestern's litigation defense costs, at a hearing scheduled for April 9, 2008. If approved, NorthWestern would receive a reimbursement of previously incurred legal fees of approximately $3.5 million to $4.0 million. Under the settlement agreement, if approved, the holders of the QUIPS, and Magten and Law Debenture, collectively, will receive approximately $23 million. The payment would come from cash principally funded through the sale of shares of NorthWestern held in the disputed claim reserve established under NorthWestern's Plan of Reorganization. It is anticipated that there will be a supplemental distribution from the disputed claim reserve, as soon as is reasonably practicable after the approval of the Motion, to all unsecured creditors and debt holders who have already received an allowed claim distribution of NorthWestern stock or a cash payment. The amount of the supplemental distribution to each of these unsecured creditors and debt holders is not presently known. "We believe this settlement is in the best interest of NorthWestern and its shareholders as it brings to closure this protracted legal dispute and resolves the last major claim from the 2003 bankruptcy", said Michael J. Hanson, President and Chief Executive Officer. It is anticipated that NorthWestern's bankruptcy case will close by the end of 2008. More information on this filing and all proceedings on this matter can be found at http://www.kccllc.net/northwestern. About NorthWestern Energy NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the Company's Web site at http://www.northwesternenergy.com/. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995". Forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." These statements are based upon our current expectations and speak only as of the date hereof. Our actual future business and financial performance may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including, but not limited to: -- our ability to avoid or mitigate adverse rulings or judgments against us in our pending litigation; -- unanticipated changes in availability of trade credit, usage, commodity prices, fuel supply costs or availability due to higher demand, shortages, weather conditions, transportation problems or other developments; -- unscheduled generation outages or forced reductions in output, maintenance or repairs; -- adverse changes in general economic and competitive conditions in our service territories; and -- potential additional adverse federal, state, or local legislation or regulation or adverse determinations by regulators. Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise. DATASOURCE: NorthWestern Corporation CONTACT: Media, Bobbi Schroeppel, 1-866-622-8081, , or Investors, Dan Rausch, +1-605-978-2902, , both of NorthWestern Corporation Web site: http://www.northwesternenergy.com/

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