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MORRISON KNUDSEN ACQUIRES STAKE IN FORMER EAST GERMAN MINING COMPANY

 BOISE, Idaho, Dec. 9 /PRNewswire/ -- William J. Agee, chairman and chief executive officer of Morrison Knudsen Corp. (MK) (NYSE: MRN), announced today that the company has acquired one-third ownership in Mitteldeutsche Braunkohlengesellschaft mgh, (MIBRAG), a German state-owned mining and reclamation company that includes some of the largest coal mining operations and electric generating plants in the former East Germany.
 MIBRAG, which has been owned by the German government since unification in 1990, was acquired from the Treuhandanstalt, the agency charged with privatizing all of the former East German state-owned companies. Revenues are estimated to be $400 million annually, with the option to acquire additional mining reserves and power plants in the future.
 "MK's equity partnership in MIBRAG epitomizes our strategy of privatization, ownership and management on the international stage," Agee said. "Our company has been continuously involved in coal mining since 1949, providing consulting, design, construction and operations services for major coal mines in the United States, Canada, China, Indonesia and South America."
 In addition to MK, the consortium consists of NRG Energy Inc., and PowerGen plc. NRG is the wholly owned non-regulated subsidiary of Northern States Power Co. PowerGen is a publicly traded electricity generating company in the United Kingdom that serves 28 percent of the power market in England and Wales. Each of the partners will hold one-third equity positions in the surface brown coal or "lignite" mines.
 Under a separate contract awarded by the consortium, MK will provide consulting and mine-management services to MIBRAG for operating the Schleenhain, Profen and Zwenkau mines, located near Leipzig, Germany, 90 miles southwest of Berlin.
 Agee said the combined coal production total during the first year from MIBRAG will exceed 19 million tons, more than doubling the current production from three mines operated by MK in Texas and Montana. Initially, MIBRAG will employ more than 3,500 German workers.
 Under terms of the agreement, MK and its partners will operate two briquette factories, a coal dust facility, and a railway which serves the mine. The consortium also will own interests in five MIBRAG subsidiaries involved in waste disposal, industrial heating, reclamation and consultancy services.
 Morrison Knudsen Corp. serves the international mining, construction, transportation, environmental, industrial and power markets as an engineer, contractor and manufacturer, offering complete development, operations and financial services.
 -0- 12/9/93
 /CONTACT: Brett Brandon of Morrison Knudsen, 208-386-5387/
 (MRN)


CO: Morrison Knudsen; Mitteldeutsche Braunkohlengesellschaft mgh;
 PowerGen; Northern States Power Co. ST: Idaho IN: MNG SU: TNM


RB -- SE004 -- 2236 12/09/93 13:15 EST
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Publication:PR Newswire
Date:Dec 9, 1993
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