MDU Resources Announces Agreement to Sell Termoceara to Petrobras


Bismarck, N.D. - March 24, 2005 - MDU Resources Group, Inc.
(NYSE:MDU) announced today that its Brazilian partnership with EBX
Capital Partners, MPX Holdings, has signed a term sheet with
Brazilian state-controlled energy firm Petrobras, suspending
arbitration proceedings and providing a framework in principle to
sell its MPX Termoceara, Ltda. generating plant to Petrobras.

The term sheet provides for the sale to Petrobras of MPX Termoceara
for US $137 million, (including $5 million currently in a court
deposit) subject to possible adjustment based on Petrobras due
diligence. MPX and Petrobras have agreed to immediately suspend all
arbitration and judicial proceedings between them relating to
Termoceara pending completion of the sale.

"MPX Termoceara has been a solid investment overall for our
corporation, our shareholders and all of our stakeholder interests.
The sale of the facility will also benefit those groups," said
Martin A. White, chairman, president and chief executive officer of
MDU Resources.

The sale is contingent on the parties entering into a definitive
purchase agreement, the satisfactory completion of a due diligence
review and audit of MPX Termoceara and certain other matters. It is
anticipated that the sale would be completed by mid-year 2005.

"The parties have actively worked together to reach a mutually
acceptable resolution of this issue," said Paul Gatzemeier,
president and chief executive officer of Centennial Energy Resources
LLC, the independent power production unit of MDU Resources. "While
we have agreed to sell our interest in Termoceara, we are continuing
to pursue other international opportunities."

MPX Termoceara, of which MDU Resources owns 49 percent, is a 220-
megawatt electric generating facility in northeastern Brazil. The
facility was permitted, developed and constructed beginning in 2001.

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.

The information in this release includes certain forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, including statements regarding the proposed
sale of the MPX Termoceara generating plant.  The forward-looking
statements contained in this release are expressed in good faith and
are believed by the Company to have a reasonable basis.
Nonetheless, actual results may differ materially from the projected
results expressed in the forward-looking statements.  Important
factors that could cause actual results to differ materially from
those in the forward-looking statements include the potential
inability of the Company and Petrobras to agree on the terms of a
definitive purchase agreement; the potential inability of the
parties to satisfy the conditions to the sale that may be contained
in a definitive agreement; political, regulatory and economic
conditions in Brazil which could negatively affect the value of MPX
Termoceara, and fluctuations in foreign currency exchanges rates.
For a discussion of other important factors that could cause actual
results to differ materially from those expressed in the forward-
looking statements, refer to Part I and Part II, Item 7 -
Management's Discussion and Analysis of Financial Condition and
Results of Operations - Risk Factors and Cautionary Statements that
May Affect Future Results, in the Company's most recent Form 10-K.

                           * * * * * * * *
Contacts:

Warren Robinson, executive vice president and chief financial
officer, (701) 222-7991

Art Thompson, senior public information representative, (701) 222-7996