SPOKANE, Wash., May 11, 2004 /PRNewswire-FirstCall via COMTEX/ -- Avista Corp. (NYSE: AVA) today announced that on May 6, 2004, it entered into a $350 million committed line of credit, replacing an agreement that was originally set to expire today, May 11. The new 364-day credit line represents a $105 million increase over the previous line and is scheduled to expire on May 5, 2005.

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The new credit facility arrangement is the result of a successful syndication of the company's eight banks and seven new banks, with the Bank of New York as lead arranger and administration agent and with Union Bank of California as the co-lead arranger and syndication agent.

"Renewing our credit facility at an increased level for this second year in a row demonstrates positive recognition by the bank credit market that we continue to restore the financial health of our company," said Malyn K. Malquist, senior vice president, chief financial officer and treasurer for Avista Corp. "We are pleased to renew credit facilities that will provide continued financial flexibility and security going forward and that will reinforce our strong relationship with our banking partners."

Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is a company operating division that provides electric and natural gas service to customers in four western states. Avista's non-regulated subsidiaries include Avista Advantage, Avista Labs and Avista Energy. Avista Corp.'s stock is traded under the ticker symbol "AVA" and its Internet address is www.avistacorp.com.

NOTE: Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation. All other trademarks mentioned in this document are the property of their respective owners.

SOURCE Avista Corp.

Jessie Wuerst, +1-509-495-8578, or
jessie.wuerst@avistacorp.com, or Angela Teed, +1-509-495-2930, or
angela.teed@avistacorp.com, both of Avista Corp.
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