Bangor Hydro Increases Common Stock Dividend Level.

Business/Technology Editors

BANGOR, Maine--(BUSINESS WIRE)--March 15, 2000

The Board of Directors of Bangor Hydro-Electric Company (NYSE:BGR) today declared a cash dividend on its common stock of $.20, payable April 20, 2000 to shareholders of record March 31, 2000. The quarterly dividend represents a $.05 increase over the $.15 per share dividend declared in each of the prior three quarters. In June of 1999, the Board resumed payment of quarterly common stock dividends after having suspended them in March 1997 due to financial difficulties triggered by problems at the Maine Yankee nuclear generating plant. Bangor hydro has a 7% ownership interest in Maine Yankee, which was permanently shut down in 1997 and is now in the process of being decommissioned. Prior to suspending the common dividend, Bangor Hydro had been paying quarterly dividends on its common stock of $.18 per share.

"We are pleased that our financial performance continues to improve sufficiently to allow us to pay a regular dividend consistent with the expectations of investors in our industry," said Frederick Samp, Chief Financial Officer of Bangor Hydro. "We have worked hard to get to this point, and we appreciate the patience and support of our stockholders while we have addressed difficult challenges."

Samp noted that the Board continues to take a cautious approach to the payment of common dividends. Bangor Hydro and Maine's other electric utilities are still in the process of implementing changes under Maine's comprehensive electric utility restructuring law. Under the law, as of March 1, 2000, consumers may choose to buy electricity directly from suppliers while Bangor Hydro continues to provide the "delivery" service as a regulated transmission and distribution utility. "We are still working our way through the transition to a restructured industry," said Samp, "and we must remain cognizant of continuing uncertainties associated with that transition."

Regular quarterly dividends on Bangor Hydro's various series of preferred stock were declared as well.

                     Dividend Declaration Summary

Common stock, $5 par value------------------ $0.20 per share
7% Preferred Stock-------------------------- $1.75 per share
4.25% Preferred Stock----------------------- $1.06 per share
4% Preferred Stock-------------------------- $1.00 per share

Bangor Hydro (www.bhe.com) is an electric utility serving a population of about 192,000 in an area encompassing 5,275 square miles in eastern and east coastal Maine. Bangor Hydro is a member of the New England Power Pool and is interconnected with other New England utilities to the south and with the New Brunswick Power Corp. to the north.