Westmoreland Bank Negotiations Continue



Philadelphia, PA --May 9, 1994--Wetmoreland Coal Company 
(NYSE:WCX) reported today that negotiations continue for 
amendments to its long standing credit facilities.  These 
facilities reach their scheduled maturity dates in July, at which 
time their balance will be $46 million.  The proposed amendments 
are expected to delay the final maturity dates on the affected 
obligations to correspond with the closing of the previously 
announced sale of obligations to correspond with the closing of 
the previously announced sale of Westmoreland Energy, Inc. (WEI) 
Westmoreland's independent power and cogeneration subsidiary.  The 
aggregate purchase price for that sale is expected to be in excess 
of $50 million, plus assumption of remaining equity commitments 
for projects in construction.  A third quarter closing is 
anticipated.

Westmoreland announced that as a part of its lender negotiations 
it would suspend payment of dividends on its preferred stock.  
Christopher K. Seglem, Westmoreland's President and Chief 
Executive Officer said, "Although regrettable this is an important 
aspect of achieving our objectives with these lenders and further 
enhances our cash position.  We believe it is in the long term 
best interests of our shareholders.  We expect to repay our 
lenders from the proceeds of the sale of WEI and plan to begin 
payment of preferred dividends again at that time."

"We are also continuing the strategic analysis of the rest of 
Westmoreland's current array of assets including its coal 
properties," Seglem added, "and, although it is still too early to 
determine whether we will choose to sell any of them, we are 
pleased with the values we have identified.  Our overall plan is 
on track, to improve cash flows, de-emphasize non-strategic or 
underperforming assets, and reposition Westmoreland so that it can 
achieve meaningful and sustainable profitability," concluded 
Seglem.