For Release:   May 22, 1996

   Contact:  Diane Ramsey, IES Industries Inc.
             (319) 398-7288

             Terry Harrmann, Interstate Power Co.
             (319) 557-2215

             Linda Brei, WPL Holdings, Inc.
             (608) 252-3081

                   MERGER PARTNERS ANNOUNCE STOCK RATIO CHANGE

             CEDAR RAPIDS, IOWA - IES Industries Inc. (IES), Interstate Power
   Company (IPC) and WPL Holdings, Inc. (WPLH) today announced they have
   entered into an amendment to the merger agreement that the three companies
   originally signed on November 10, 1995.  This change has been made to
   recognize additional value of an investment within IES's diversified
   business.  As a result of the amendment, holders of IES common stock may
   receive 1.01 shares of WPLH common stock for each share of IES common
   stock they own on the effective date of the merger.  This exchange ratio
   would be in lieu of the exchange ratio of .98 shares of WPLH common stock
   for each IES share that was called for by the original agreement.  Under
   the merger agreement as amended, the share exchange ratio applicable to
   holders of IPC common stock remains unchanged as does the fact that shares
   of WPLH common stock will remain unchanged and outstanding as a result of
   the merger.

             The change in the IES share exchange ratio is being made to
   recognize the potential additional value associated with IES Industries'
   investment in McLeod Inc., a telecommunications service provider based in
   Cedar Rapids, Iowa.  IES presently owns approximately 8.4 million shares
   and has options to purchase an additional 1.2 million shares.  IES's fully
   diluted ownership represents approximately 30% of McLeod.

             McLeod has announced its intention to make a public offering of
   its Class A Common Stock.  In a filing made on May 15, 1996, with the
   Securities and Exchange Commission, McLeod indicated it expects the
   initial public offering price of its shares to be between $16.00 and
   $18.00 per share.  "The investment in McLeod further demonstrates the
   success of our diversified efforts at IES and the continued increased
   return to our shareholders," states Lee Liu, chairman, president and chief
   executive officer of IES.

             The increase in the IES exchange ratio is contingent upon a
   public offering of McLeod common stock, among other contingencies, at a
   price of at least $13.00 per share.  Should a public offering of McLeod
   stock not take place prior to the closing date of the merger or if the
   offering is priced at less than $13.00 per share, the IES share exchange
   ratio will remain at .98.

             Lee Liu, Erroll B. Davis, Jr., president and chief executive
   officer of WPL Holdings, Inc. and Wayne H. Stoppelmoor, chairman,
   president and chief executive officer of Interstate Power Company, jointly
   stated that the change in the merger agreement is an appropriate
   adjustment in light of the developments associated with McLeod, Inc.  "We
   continue to believe that the combination of these three companies will
   create significant long term benefits for our customers, shareowners and
   employees," state the three CEOs.

             Shareowner meetings to approve the merger will be scheduled by
   the three companies for later this summer.  Proxy materials will be
   distributed to shareowners following review of the materials by the
   Securities and Exchange Commission.