Hawaiian Electric Industries, Inc. Subsidiary May Withdraw From China Project.

Business Editors

HONOLULU--(BUSINESS WIRE)--May 15, 2000

Hawaiian Electric Industries, Inc. (NYSE:HE) announced today HEI Power Corp. and subsidiaries (HEIPC Group) may withdraw from its project in China. HEIPC Group has a 75% interest in a joint venture formed to design, construct, own, operate and manage a 200 megawatt (net) coal-fired power plant in Inner Mongolia. The power plant is being built "inside the fence" for Baotou Iron & Steel (Group) Co., Ltd. (Baotou Steel). The project has received approval from both the National and Inner Mongolia governments. Construction had commenced and the first of the two units had been expected to be online by early 2001, and the second six months later. However, the Inner Mongolia Power Company (IMPC), which owns and operates the electricity grid in Inner Mongolia, has refused to enter into an interconnection arrangement with the joint venture. The HEIPC Group does not believe that it is prudent to continue construction without an interconnection agreement whose terms are consistent with the project as approved by the National and Inner Mongolia governments.

Under the Power Purchase Contract between the joint venture and Baotou Steel, it is Baotou Steel's responsibility to secure an interconnection arrangement with IMPC. Accordingly, the HEIPC Group believes Baotou Steel is now in default. The HEIPC Group intends to cause the joint venture to pursue remedies for the default and, if not cured, withdraw from the project and seek recovery of its investment of approximately $25 million to date. Management cannot predict the outcome of such efforts, nor estimate its impairment loss, if any, at this time.

HEIPC Group has invested approximately $112 million in other international power projects in the Philippines and in Guam. None of the funds have come from HEI's utility, banking or other subsidiaries.

HEI is a diversified holding company. Its core businesses are electric utilities, a savings bank and an international power subsidiary formed to pursue independent power and integrated energy projects in Asia and the Pacific.

Forward-looking information

This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Except for historical information contained herein, the matters set forth are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, such factors as the effect of international, national and local economic conditions; political and business risks inherent in doing business in developing countries; the timing and extent of changes in interest rates and foreign currency exchange rates; the convertibility and availability of foreign currency; the effects of weather and natural disasters; capacity and supply constraints or difficulties; new technological developments; governmental and regulatory actions, including changes in laws, rules and regulations applicable to HEI and its subsidiaries, decisions on permitting issues and changes in taxation; the results of financing efforts; and the timing of the development and construction of the project. Investors are also referred to other risks and uncertainties discussed in other periodic reports filed by HEI in 1999 with the Securities and Exchange Commission.