CEMIG Announces Receipt of Authorization From the Central Bank of Brazil to Make Waiver Payments in Respect of Its US$150,000,000 9.125% Notes Due November 18, 2004.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 5, 2001

Companhia Energetica de Minas Gerais--CEMIG announced today that it has received authorization from the Central Bank of Brazil to remit funds outside of Brazil in an amount sufficient to cover the waiver payments payable pursuant to the terms of its solicitation of waivers, which expired on September 26, 2001. In the solicitation, CEMIG sought waivers from the holders of its US$150,000,000 9.125% Notes due November 18, 2004 of each such holder's right to require CEMIG to repurchase the Notes at a repurchase price of 98.704% of the principal amount on November 18, 2001, plus accrued and unpaid interest and any additional amounts. The waiver payment, as calculated pursuant to the terms of the solicitation, is US$95.51 for each US$1,000 in principal amount of Notes for which a waiver was validly delivered and not validly revoked.

UBS Warburg LLC is acting as the Solicitation Agent for CEMIG's waiver solicitation, and the Information Agent is D.F. King & Co., Inc.

Additional information concerning the terms of the waiver solicitation may be obtained from UBS Warburg LLC at [phone] (toll-free), extension 8035 (Attention: Raffaele Cimmino) or extension 1575 (Attention: David Knutson). From outside the U.S., call collect at [phone] (Attention: Raffaele Cimmino) or [phone] (Attention: David Knutson).