CEMIG REPORTS RECORD FIRST QUARTER 95 REVENUE; Energy Sales Gain 29 Percent; Net Income Rises 4.7 Percent.

Belo Horizonte, Brazil--(BUSINESS WIRE)--May 18, 1995--Companhia Energitica de Minas Gerais - CEMIG - (OTC: CEMIY), Brazil's largest fully integrated energy company, today reported record first quarter 1995 operating revenue of 384.349 million reais, a 6 percent gain over operating revenue of 362.549 million reais in the first quarter of 1994.

Net revenue for the quarter rose 4.7 percent to 352.283 million reais, up from 336.443 million reais in the year ago quarter. First quarter energy sales were 444.716 million reais, up 29 percent from energy sales of 344.810 million reais last year. Sales figures do not include sales to other utilities, which were 11.943 million reais in the first quarter, up from 8.338 million reais in the 1994 quarter.

Cemig reported sales gains in all customer sectors except industrial, which fell 4 percent. Residential sales were up 14 percent, commercial 16 percent, and rural 18 percent. Cemig's own energy consumption also increased 18 percent.

The average rate per million kilowatt hours increased substantially in all sectors during the quarter, from 10 percent for rural customers, to 27 percent for public utilities. The industrial rate was up 25 percent.

Cemig also announced today that it will participate in a six-company consortium to build the 210-megawatt, $270 million Igarapava hydroelectric dam in western Minas Gerais state. Cemig's stake in the project will be 14.5 percent, and the state's share will be limited to 49.5 percent.

The contract for the Igarapava dam is being hailed as one of the first fruits of President Fernando Henrique Cardoso's efforts to transform Brazil into a free market economy. Enabling legislation allowing private companies to operate the country's state-run roads, telephone systems, cargo facilities, and utilities was passed by the Brazilian Congress in February.

Luiz Fernando Rolla, a Cemig financial officer, today said work on Igarapava will begin in June and will take 42 months to complete. Financing will be shared by the six-company group. Any excess energy will be sold through Cemig, which provides energy for 97 percent of Minas Gerais, Brazil's largest industrial state after Sao Paulo.

In an effort to meet Brazil's growing energy needs, the government now plans to to renew bidding on 34 dams that are stalled or were never begun because of a lack of money. -0-

            COMPANHIA ENERGETICA DE MINAS GERAIS - CEMIG

                        STATEMENT OF INCOME
                        AS OF MARCH 31, 1995
                        (in thousand reais)

                                    CURRENCY OF CONSTANT
                                       PURCHASE POWER

                                   31-Mar-95      31-Mar-94

OPERATING REVENUE                    384,349        362,549
Sale of electric energy              444,716        344,810
(-) Value-added sales and services
 Tax (ICMS)                         (78,471)       (78,300)

Sales to other utilities              11,943          8,338

Other                                  6,161         87,701

Regulatory Charges                  (32,086)       (26,106)

Net revenue                          352,263        336,443

OPERATING EXPENSES                   358,286        246,278
   Electric energy purchases
        for resale                    94,289        126,287
   Depreciation                       88,564         66,051
   Personnel                          87,276         54,437
   Supplies                            7,346          4,504
   Third-party services               17,828         14,213
   FORLUZ contribution                 8,826          7,975
   Others                             54,155       (27,189)
Royalties                              4,686
    Social charges - contributions not
              restricted to payroll   15,372
    Rentals and Leasing                2,805
    Monetary Correction               18,848
    Others                            12,444

                                CEMIG

                            BALANCE SHEET
                         AS OF MARCH 31, 1995

                                ASSETS
                          (in thousand reais)

                                    CURRENCY OF CONSTANT
                                        PURCHASE POWER

                                     31-Mar-95   31-Mar-94

CURRENT ASSETS                        457,477     418,374
 Cash and banks                       140,388     122,268

 Credits, securities and assets
       receivable                     317,089     296,106
    Consumers and dealers             223,253     215,841
    Income receivable                   7,739       3,743
    Sundry receivables                 20,417      23,288
    Other credits                       5,867       3,279
    Allowance for doubtful accounts
    Stores                             52,886      48,701
    Services in process                 6,692         820

    Prepaid expenses                      235         434

LONG TERM RECEIVABLES                   4,759       5,601
   Securities
   Judicial deposits                    1,390       1,419
   Other credits - consumers            2,960       3,739
   Other                                  409         443

PERMANENT                           8,441,627   8,412,470
   Investments
   Property, plant and equipment
       in service                   6,015,869   5,923,769
   Property, plant and equipment
       under construction           1,191,135   1,268,588
   Deferred Charges                 1,163,196   1,144,610

             TOTAL ASSETS

CONTACT: Carmen Camacho, Vice Pres.

The Anne McBride Co. 212-752-0504

or

Luiz Fernando Rolla, Asst. to CFO

CEMIG Tel. [phone]