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MIDWEST POWER SYSTEMS ISSUES NEW BONDS

 DES MOINES, Jan. 25 /PRNewswire/ -- As part of an ongoing refinancing program that the company anticipates will reduce its cost of debt, on Jan. 19, 1993, Midwest Power Systems Inc. sold to underwriters in a negotiated offering five new Series of General Mortgage Bonds. The new Series include: $75 million of 6.25 percent Series due 1998; $75 million of 6.75 percent Series due 2000; $100 million of 7.125 percent Series due 2003; $75 million of 7.375 percent Series due 2008; and $100 million of 8.125 percent Series due 2023. Interest payment dates are Feb. 1 and Aug. 1. Delivery date is scheduled for Feb. 2, 1993.
 PaineWebber Inc. is lead manager for the offering with Merrill Lynch & Co. and Smith Barney, Harris Upham & Co. as co-managers. The new Series are rated single-A plus by Standard & Poor's, single-A 2 by Moody's Investors Service and single-A by Fitch Investors Service. After the issuance of the new Series, Midwest Power Systems will have $325 million remaining on its shelf registration.
 The proceeds from the sale of the Midwest Power Systems General Mortgage Bonds will be used to refinance existing First Mortgage Bonds issued by its predecessor companies, Iowa Power Inc. and Iowa Public Service Co.
 The following Series of Iowa Power First Mortgage Bonds have been called:
 -- $50 million 8.25 percent, due July 1, 1996;
 -- $50 million 8.375 percent, due Dec. 1, 1997;
 -- $13.2 million 6.625 percent, due Jan. 1, 1998;
 -- $13 million 9.00 percent, due Jan. 1, 2000;
 -- $13.5 million 7.625 percent, due Dec. 1, 2001;
 -- $29.2 million 8.75 percent, due March 1, 2006; and
 -- $29.4 million 8.25 percent, due Sept. 15, 2007.
 The following Series of Iowa Public Service Co. First Mortgage Bonds have been called:
 -- $12 million 4.375 percent, due Sept. 1, 1993;
 -- $80 million 8.25 percent, due April 1, 1996;
 -- $25 million 9.00 percent, due April 1, 2000;
 -- $15 million 8.00 percent, due Sept. 1, 2001;
 -- $17 million 7.375 percent, due June 1, 2002;
 -- $25 million 9.00 percent, due May 1, 2006;
 -- $25 million 8.00 percent, due Aug. 1, 2007; and
 -- $25 million 8.75 percent, due Aug. 1, 2008.
 The called Series of First Mortgage Bonds will settle Feb. 19, 1993, and include accrued interest to that date, except the Iowa Power 8.75 percent Series due March 1, 2006, which will settle March 1, 1993, with accrued interest to that date.
 The company also initiated a tender offer to purchase its $70 million First Mortgage Bonds, 10 1/2 percent Series due 2018 issued by Iowa Power. The tender offer expires on Jan. 26, 1993.
 This refinancing is part of the company's continuing effort to reduce overall operating costs.
 This announcement is neither an offer to purchase nor a solicitation of an offer to sell these securities.
 Midwest Power Systems is the utility subsidiary of Midwest Resources Inc. (NYSE: MWR), a Des Moines-based utility holding company. Midwest Power Systems has two divisions: Midwest Power and Midwest Gas. Midwest Power provides electric service to 417,000 customers in Iowa and South Dakota. Midwest Gas serves 370,000 customers in Iowa, Minnesota, Nebraska and South Dakota. Midwest Resources operates its nonregulated interests through its Midwest Capital Group subsidiary.
 -0- 1/25/93
 /CONTACT: Sue Rozema of Midwest Power, 515-281-2250/
 (MWR)


CO: Midwest Power Systems Inc. ST: Iowa IN: UTI SU:

BB -- DV003 -- 8508 01/25/93 12:36 EST
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Date:Jan 25, 1993
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