Avista Corp. Charged With Securities Fraud, Announces Berman DeValerio & Pease LLP.

Business Editors and Legal Writers

BOSTON--(BUSINESS WIRE)--Aug. 16, 2000

Berman, DeValerio & Pease LLP 

a law firm specializing in representing shareholders

in class action lawsuits, issues the following press release:

Avista Corporation ("Avista" or the "Company") (NYSE: AVA) was named as a defendant in a shareholder class action filed in the United States District Court for the Eastern District of Washington. The action, brought by Berman, DeValerio & Pease, LLP, www.bermanesq.com, seeks damages for violations of the federal securities laws on behalf of all investors who purchased Avista common stock between April 7, 2000 through and including June 21, 2000 (the "Class Period").

The lawsuit charges Avista and certain of its officers with violations of the federal securities laws. The action charges that despite assurances from Avista that it would only enter into derivative contracts as a means to "limit the exposure to market risk," the Company covertly entered into huge amounts of forward contracts in an undisclosed gamble that electricity prices would decrease in the future. The price of electricity subsequently skyrocketed resulting in staggering losses on these forward contracts. When the Company disclosed these massive losses, and the impact they would have on the financial position of the Company, the Company's stock price plummeted. On the day prior to the start of the Class Period, Avista shares closed trading at $37 11/16 per share. After Avista was finally forced to publicly acknowledge the extent of the losses resulting from this improper speculation on June 21, 2000, Avista's shares closed trading at $19 per share.

If you purchased Avista common stock during the Class Period and suffered a loss on your investment, you may wish to contact the lawyers at Berman, DeValerio & Pease LLP to discuss your rights and interests:

Michael M. Sullivan, Esq.

Jeffrey C. Block, Esq.

Berman, DeValerio & Pease LLP

One Liberty Square

Boston, MA 02109

E-Mail: [e-mail].

[phone]

To learn more about this action, other cases or class actions in general, you can also visit our website at www.bermanesq.com.

If you wish to apply to be Lead Plaintiff in this action, a motion must be filed on your behalf with the court no later than September 26, 2000. To be a member of the class you need not take any action at this time and you may retain counsel of your own choice. To serve as lead plaintiff, however, you must meet certain legal requirements. You may contact the attorneys at Berman, DeValerio & Pease LLP to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action.

With offices in Boston and San Francisco, Berman, DeValerio & Pease LLP has extensive experience prosecuting shareholder class actions. The firm has been appointed lead counsel in numerous actions involving companies that have issued false and misleading statements, has successfully litigated these actions, and has been singled out for its excellence by many courts. The firm prides itself on its responsiveness to shareholders and their needs in particular cases.