UtiliCorp Chairman Richard C. Green, Jr. to Assume New Role in Combined Company; Robert K. Green Will Become CEO

Business Wire, Nov 7, 2001

Business Editors

KANSAS CITY, Mo.--(BUSINESS WIRE)--Nov. 7, 2001

Richard C. Green, Jr., chairman and chief executive officer of UtiliCorp United (NYSE:UCU), announced today that he will take on a new role, effective January 1, 2002, initially as chairman of UtiliCorp and later of the new company that will be formed from UtiliCorp United and Aquila, Inc. (NYSE:ILA), its 80-percent-owned subsidiary. Green also announced that effective January 1, 2002, Robert K. Green, president and chief operating officer, will be elevated to president and chief executive officer.

Citing his desire to accelerate the announced strategy, meet the broadening demands of the new company and take the new organization to "the next level," Green said that as chairman of Aquila he will concentrate on the important tasks of increasing focus on customers and leading development of talent. He will also continue to be active in Washington as national energy policy is being shaped.

UtiliCorp announced earlier today that it plans to make an exchange offer by which UtiliCorp would acquire all of the outstanding publicly held common shares of Aquila, Inc. After successful completion of the exchange offer, UtiliCorp has committed to complete a "short-form" merger of Aquila with a UtiliCorp subsidiary. The combined company would then adopt the Aquila name.

"Over the past year I have devoted an increasing amount of time and energy to raising other chief executives' awareness of Aquila's broad capabilities," Green said. "We have a unique position in the emerging market that is being created by the convergence of the insurance, capital and energy businesses, combining our expertise in risk management, wholesale energy, structured financing, generation assets and other related activities. We can help clients in countless industries in ways they've never thought of, and that opportunity is largely driving this change in executive roles."

As president and chief executive officer, Robert Green will have responsibility for strategy development and daily management of the company.

"Bob and I are excited about this new company because it has such a solid foundation of financial performance and growth," Green said. "Over the last several years we've accelerated the pace throughout UtiliCorp and Aquila. Sustaining and maximizing that momentum as the new Aquila is launched will demand my full focus.

"Bob Green has demonstrated his ability to produce sustainable, world-class results," he added. "This expansion of his duties will ensure that strategy, operations and long-term business development are all in sync.

"I am focusing on what has always been the most important factor in our companies' success -- people. I look forward to more contact and collaboration with our new company's core team. I have been discussing this division of responsibility with Bob and our board of directors for some time. Our phenomenal growth over the past decade to rank number 60 on the Fortune 100 list is due in great part to our people and customers. These announced moves will give us the optimal organizational structure to continue to capitalize on the tremendous opportunities we see in the changing and expanding energy industry."

As CEO, Bob Green will focus on the evolution and execution of the new Aquila's strategy, mergers and acquisitions, and communications with investors and shareholders.

"I'm extremely enthused about this opportunity," he said. "The new Aquila has all the ingredients for continued success in this challenging business. There are tremendous opportunities in our markets with the growth, liberalization and privatization of energy markets and related risk."

The fourth generation of his family to lead the company, Richard C. Green, Jr. created UtiliCorp in 1985 from Missouri Public Service Company. The company had its origins in an electric utility founded by his great-grandfather, Lemuel Green.

Over the past 16 years, Rick Green has led UtiliCorp through a period of aggressive growth that included more than $3 billion in acquisitions. During his tenure as CEO, the company's sales grew from $243 million in 1985 to $42.3 billion in the most recent 12 months, and customers served by its electric and gas networks increased from 500,000 to about 4 million. When UtiliCorp acquired it in 1986, Aquila was a two-man operation marketing natural gas from a small office in Omaha. Today it is one of the largest wholesalers of gas and electricity in North America and an innovative provider of risk management products and services.

Bob Green was elected president of UtiliCorp in 1996 and as chief operating officer has led the integration of its domestic and international growth strategies. He has played a key role in building the company's international businesses, which in 2000 accounted for 29 percent of UtiliCorp's earnings before interest and taxes. He has been chairman of United Energy in Australia since 1995, chairman of UnitedNetworks in New Zealand since 1998, and chairman of Aquila, Inc., which includes operations in the United Kingdom and parts of Europe, since 1999. He has also overseen the integration of UtiliCorp's electric and gas utility operations in seven states. He joined UtiliCorp in 1988 and was president of its Missouri Public Service division before being named executive vice president of UtiliCorp in 1993.