Declining Coal Prices Expected to Rebound 3% in 2nd Quarter 2002, 9% in the Next Year, According to Platts.

Business Editors

BOULDER, Colo.--(BUSINESS WIRE)--Jan. 31, 2002

Recently declining coal prices are expected to rebound 3% in the second quarter and 9% in the next year, according to Platts, the energy information and marketing services business of The McGraw-Hill Companies (NYSE: MHP).

"Today's coal prices are nearing the lowest levels we expect to see in the next year or two," according to Andy Roberts, a principal with Platts' RDI Consulting unit.

The second quarter increase will be due to a slight rebound in western sub-bituminous coal prices. Little movement in NYMEX-quality and already high Northern Appalachia prices is expected, as indicated by the RDI Coal Price Index, upon which the Platts forecast is based.

The one-year forward Index is forecast to recover further. "Eastern coal supplies will remain tight while a return to normal weather and a gradually improving, but still weak economy, modestly stimulate demand," Roberts said. "These price stimuli will overcome the effects of continued low natural gas prices and higher coal inventory levels."

Platts' RDI Consulting prepares the Coal Price Index every quarter as part of its Coal Market Research subscription service. The Index is a national aggregate of changes in key forecasted Free-On-Board (FOB) mine coal prices of coal sold for delivery to customers on both new contract and spot terms.

Platts is the world's largest and most authoritative provider of energy information and marketing services, with 16 offices worldwide. Products range from real-time and Internet-based news and price assessment services, to newsletters, market reports, databases, magazines, conferences, research services, geospatial tools and consulting. Platts offerings cover the oil, petrochemical, natural gas, electricity, nuclear power, coal and metals markets. Every day, more than $10 billion of trading activity and term contract sales are based on Platts' price assessments. Additional information is available at www.platts.com and www.plattsmetals.com.

Founded in 1888, The McGraw-Hill Companies is a global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, BusinessWeek and McGraw-Hill Education. The Corporation has more than 300 offices in 33 countries. Sales in 2001 were $4.6 billion. Additional information is available at www.mcgraw-hill.com.