Aquila Expects Second-Quarter Earnings to be Up 300%; Investor Conference Call and Webcast Set for 2:00 p.m. EDT August 8.

Business Editors

KANSAS CITY, Mo.--(BUSINESS WIRE)--July 19, 2001

Aquila, Inc. (NYSE:ILA) announced today that it expects this year's second-quarter net income to be approximately $100 million, or $1.05 per share. This compares to the $22 million in net income, or $.25 per share, earned in the 2000 second quarter, an increase of more than 300 percent. The company's estimated earnings are more than double the current First Call analyst consensus of $.36 per share.

Aquila expects net income from $215 to $225 million for the full year, or $2.25-2.36 per share. Current analysts' full-year forecast of earnings per share is $1.55-1.62, with a consensus of $1.58, according to First Call.

"Aquila performed exceptionally well the first half of 2001, allowing us to again raise our full-year guidance," said Robert K. Green, chairman.

Keith G. Stamm, chief executive officer, pointed to three main factors behind Aquila's results. "Our extraordinary earnings growth has been driven by an increased interest from our clients in risk management solutions, an additional 1,070 megawatts of generation brought on line this year, and the performance of our commodity marketing franchise. The new generation capacity includes the 500 megawatts we acquired with the purchase of GPU International in December 2000."

Aquila will announce earnings on the morning of August 8, followed by a webcast at 2:00 p.m. EDT with Green, Stamm, and Chief Financial Officer Dan Streek to review Aquila's second-quarter results and full-year outlook.

To access the webcast via the Internet, go to Aquila's website at www.aquila.com and click on "Investor Relations" at the bottom of the screen, then click on "Webcasts" for the link to the live webcast. Listeners should allow five minutes to register and access the presentation.

For those unable to listen to the live broadcast, replays will be available for two weeks, beginning approximately one hour after the presentation, using the same access method.

Based in Kansas City, Aquila, Inc. is a provider of risk management services and a wholesaler of electricity and natural gas in North America. It also provides wholesale energy services in the U.K. and has a presence in Bermuda, Scandinavia and Germany. Aquila is an 80-percent-owned subsidiary of UtiliCorp United (NYSE:UCU), an international energy company with more than 4 million customers across the U.S. and in Canada, Great Britain, New Zealand and Australia.

Forward-Looking Information

This press release contains forward-looking statements including statements about our future financial performance and our projected business results. All projections are based on assumptions as to future events that are inherently uncertain and subjective. We make no representation or warranty as to the attainability of such assumptions or as to whether future results will occur as projected. Our actual results could differ materially from the forward-looking statements and the projections as a result of various factors, including those described in the "Risk Factors" section of our recent registration statement on Form S-1 and the following factors:

-- Changes in commodity prices and interest rates;

-- Unusual weather conditions;

-- Competition in the markets in which our businesses operate;

-- The success of our growth strategy;

-- Economic and financial market conditions; and

-- Changes in state, federal and other regulations affecting our

business.