MDU Resources Involved in Contract Negotiations in Brazil

BISMARCK, N.D. - Jan. 18, 2005 - MDU Resources Group, Inc.
(NYSE:MDU), confirmed today that MPX Termoceara Ltda, in which
MDU Resources has a 49 percent interest, is continuing
discussions with Petrobras, regarding a possible renegotiation
or buyout of Petrobras' power purchase agreement with MPX.

On Jan. 13, 2005, Petrobras obtained a Brazilian court order
permitting it to cease making monthly capacity payments to MPX
and to instead deposit the payments into a court account until
the matter is resolved. MPX has appealed the court order to the
Brazilian appellate courts.

"MPX Termoceara is having discussions with high-ranking
Petrobras and government officials," said Martin A. White,
chairman of the board, president and chief executive officer of
MDU Resources. "I'm confident that MPX and Petrobras will be
able to resolve their differences and reach a mutually agreeable
outcome."

MPX Termoceara is a 220 megawatt natural gas-fired electric
generating facility located in northeastern Brazil. EBX Capital
is the 51 percent managing partner. The plant's revenue contract
with Petrobras is scheduled to expire in mid-2008.

Under the existing contract, Petrobras agreed to jointly market
all of the facility's energy, and in the event that the
facility's revenues are insufficient to cover its costs during
certain periods, the contract provides for Petrobras to make
certain monthly contingency payments.

Petrobras has stated that because of structural changes in the
Brazilian electric power markets since the contract was signed
in 2001, it intends to renegotiate the contract. The Brazilian
court order creates a 30-day period for accelerated
negotiations. In the event that the parties do not reach
agreement during the 30-day period, the next step is
arbitration.

"Petrobras is a key player in the oil, natural gas and energy
business in Brazil," said Paul Gatzemeier, president and CEO of
Centennial Energy Resources LLC, MDU Resources independent power
production business unit that manages international business
activities. "We believe there may be opportunities to do
business with them in the future as we execute our international
business strategy. A negotiated settlement, which both parties
consider fair,  is the best outcome."

The information in this release includes certain forward-looking
statements, including statements by the chairman of the board,
president and chief executive officer of MDU Resources Group,
Inc. and the president and CEO of Centennial Energy Resources
LLC, within the meaning of Section 21E of the Securities
Exchange Act of 1934. Although the company believes that its
expectations are based on reasonable assumptions, actual results
may differ materially. Important factors that could cause actual
results to differ materially from those in the forward-looking
statements include the inability to reach a mutually agreeable
outcome with respect to the Petrobras power purchase agreement
with MPX. For a discussion of other important factors, refer to
the Introduction and Item 2 - Management's Discussion and
Analysis of Financial Condition and Results of Operations - Risk
Factors and Cautionary Statements that May Affect Future Results
in MDU Resources' most recent Form 10-Q.

MDU Resources Group, Inc., a member of the S&P MidCap 400 index,
provides value-added natural resource products and related
services that are essential to energy and transportation
infrastructure. MDU Resources includes natural gas and oil
production, construction materials and mining, domestic and
international independent power production, electric and natural
gas utilities, natural gas pipelines and energy services, and
utility services. For more information about MDU Resources, see
the company's Web site at www.mdu.com or contact the Investor
Relations Department at investor@mduresources.com.