Board Authorizes a 4 Percent Increase in Common Stock Dividends

SPOKANE, Wash., Feb. 14 /PRNewswire-FirstCall/ -- Avista Corp. (NYSE: AVA) board of directors has declared a quarterly dividend of $0.135 per share on the company's common stock. A quarterly dividend of $1.73750 per share was declared on all outstanding shares of preferred stock Series K. The common and preferred stock dividends are payable March 15, 2005, to shareholders of record at the close of business on Feb. 25, 2005.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040128/SFW031LOGO)

The common stock dividend represents a 4 percent increase over the last quarterly dividend of $0.13 per share declared in November 2004. This will result in an indicated annual dividend of $0.54 per share. Payment of dividends is subject to declaration and approval by the board each quarter.

"This is the third dividend increase authorized by the board in 18 months. We believe it is a demonstration of the board's confidence in our strategic direction and in the steps we have taken to improve the financial strength of the company," said Gary G. Ely, Avista chairman, president and chief executive officer. "Avista is continuing to make steady progress in strengthening its financial health through a range of activities, including managing debt and interest costs, and obtaining rate relief to allow the utility to earn returns more in line with those authorized by regulators."

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 service to 330,000 electric and 305,000 natural gas customers in four western states. Avista's non-regulated subsidiaries include Avista Advantage and Avista Energy. Avista Corp.'s stock is traded under the ticker symbol "AVA." For more information about Avista, please visit www.avistacorp.com.

NOTE: Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.

SOURCE  Avista Corp.
    -0-                             02/14/2005
    /CONTACT:  media, Jessie Wuerst, +1-509-495-8578, or
jessie.wuerst@avistacorp.com, or investors, Jason Lang, +1-509-495-2930, or
jason.lang@avistacorp.com, both of Avista Corp., or Avista 24/7 Media Access,
+1-509-495-4174/
    /Photo:  NewsCom:  http://www.newscom.com/cgi-bin/prnh/20040128/SFW031LOGO
             AP Archive:  http://photoarchive.ap.org
             PRN Photo Desk, photodesk@prnewswire.com/
    /Web site:  http://www.avistacorp.com /
    (AVA)

CO:  Avista Corp.
ST:  Washington
IN:  UTI OIL
SU:  DIV

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