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                                 ALLIANT ENERGY

                                                        Alliant Energy
                                                        Worldwide Headquarters
                                                        222 W. Washington Ave.
                                                        P.O. Box 192
                                                        Madison, WI  53701-0192
                                                        www.alliant-energy.com

News Release
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FOR IMMEDIATE RELEASE       Media Contact:     David Giroux at (608) 252-3924
                            Finance Contact:   Bob Rusch at (608) 252-3470


ALLIANT  ENERGY  RESOURCES   COMPLETES  $402.5  MILLION  PRIVATE   PLACEMENT  OF
EXCHANGEABLE SENIOR NOTES

         MADISON,  WIS.  --  February  1,  2000 --  Alliant  Energy  Corporation
(NYSE:LNT)  today  announced that its  wholly-owned  subsidiary,  Alliant Energy
Resources,  Inc., completed a private placement of 5,940,960 exchangeable senior
notes in accordance with Rule 144A under the Securities Act of 1933.

         The  exchangeable  senior notes were issued in the  original  aggregate
principal  amount of $402.5 million,  and will be due in 2030. The  exchangeable
senior notes have an interest rate of 7.25 percent through February 15, 2003 and
2.5 percent thereafter.  The exchangeable senior notes are exchangeable for cash
based upon the value of McLeodUSA  Incorporated  Class A Common  Stock.  Alliant
Energy Corporation has agreed to fully and unconditionally guarantee the payment
of principal and interest on the exchangeable senior notes.

         Alliant Energy Resources  expects to use the net proceeds from the sale
of the  exchangeable  senior notes (1) to repay  commercial paper Alliant Energy
Resources   issued    initially   to   capitalize   its   wholly-owned    exempt
telecommunications  company  and  indirectly,  through an  internal  transfer of
assets, to fund Alliant Energy Resources recent investment in Brazil and (2) for
general  corporate  purposes,  including  to fund  potential  future  investment
opportunities in energy  marketing,  co-generation,  environmental  services and
other areas.  Alliant Energy Resources may initially invest net proceeds that it
does not immediately require in short-term marketable securities.

         The  exchangeable  senior  notes  have not been  registered  under  the
Securities Act of 1933 and may not be offered or sold absent  registration under
such Act or an applicable exemption from the registration requirements.

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