<Page>
Exhibit 99.1
[NORTHWESTERN CORPORATION LOGO] NEWS RELEASE
NYSE:NOR
CONTACTS:
INVESTORS/MEDIA:
Roger Schrum
605-978-2848
roger.schrum@northwestern.com
- --------------------------------------------------------------------------------
NORTHWESTERN CORPORATION REPORTS SECOND QUARTER 2002 EPS
OF 49 CENTS FROM CONTINUING OPERATIONS;
OPERATING INCOME REACHES $83.5 MILLION
- --------------------------------------------------------------------------------
BOARD OF DIRECTORS DECLARES 31 3/4 CENTS DIVIDEND PER SHARE
- --------------------------------------------------------------------------------
SIOUX FALLS, S.D. - AUG. 8, 2002 - NORTHWESTERN CORPORATION (NYSE:NOR) TODAY
REPORTED SECOND QUARTER 2002 NET INCOME FROM CONTINUING OPERATIONS OF $20.9
MILLION, OR 49 CENTS PER DILUTED SHARE BEFORE DISCONTINUED OPERATIONS, COMPARED
WITH $12.8 MILLION, OR 47 CENTS PER DILUTED SHARE IN THE SECOND QUARTER OF 2001.
FOR THE SIX MONTHS THAT ENDED JUNE 30, 2002, INCOME FROM CONTINUING OPERATIONS
WAS $44.8 MILLION, OR $1.13 PER DILUTED SHARE BEFORE DISCONTINUED OPERATIONS,
COMPARED WITH $26.0 MILLION, OR 95 CENTS PER DILUTED SHARE DURING THE PRIOR YEAR
PERIOD. RESULTS FOR THE FIRST HALF OF 2002 WOULD HAVE INCREASED AN ADDITIONAL 23
CENTS PER SHARE WITH THE INCLUSION OF JANUARY 2002 RESULTS FROM THE ACQUIRED
MONTANA ENERGY OPERATIONS.
"Strong results from our energy businesses, which account for more than 70
percent of NorthWestern's operating income, coupled with outstanding performance
from our communications business, led to solid second quarter and first half
results," said Merle D. Lewis, NorthWestern's chairman and chief executive
officer. "We are excited about the growth in cash flows from our continuing
operations and remain on track to meet our previously announced full-year
earnings target of $2.30 to $2.55 per share from continuing operations."
Revenues from continuing operations for the second quarter of 2002
increased to $515.7 million, compared with $476.8 million in the same quarter in
2001. For the first half of 2002, revenues from continuing operations were
$995.8 million, compared with $954.4 million in the first half of 2001. Revenues
from continuing operations increased during the second quarter and the first
half of 2002 because of the addition of NorthWestern Energy's operations in
Montana. However, second quarter and first half revenues were impacted by lower
energy commodity prices and decreased communications revenues stemming from
efforts to focus on higher-margin recurring sales as well as continuing soft
market conditions.
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<Page>
NorthWestern Reports Second Quarter 2002 EPS of 49 Cents
Aug. 8, 2002
Page 2
NorthWestern's operating income for the second quarter of 2002 increased
to $48.8 million, compared with an operating loss of $3.2 million in the second
quarter of 2001. For the first half of 2002, operating income was $83.5 million,
compared with an operating loss of $40.3 million in the first half of 2001. For
the first six months of 2002, cash flows from continuing operations increased to
$52.2 million, compared with cash flows from continuing operations of $37.5
million in the first half of 2001.
"Our improvement in operating income and cash flows is attributable to our
expanded energy operations, improvements in our communications business and our
successful Operational Excellence initiatives. We are projected to generate
further cash flow improvements going forward that are more than sufficient to
support the funding of planned capital expenditures and dividends," Lewis said.
In addition to strong cash flow generation capabilities, Lewis said that
NorthWestern has access to a $280 million revolving credit facility, which
reflected a drawn balance of $35 million on Aug. 7, 2002. Up to $225 million of
the facility may be converted into a term loan on a non-revolving basis,
maturing in February 2004.
DIVIDEND DECLARATION
NorthWestern's Board of Directors declared a quarterly dividend of 31 3/4
cents per share on the company's common stock, payable Sept. 1, 2002, to
shareholders of record on Aug. 15, 2002. The company's dividend rate is
currently $1.27 per share.
"We believe strong cash flow from our energy and communications businesses
provides a solid platform for generating increased earnings, funding operations
and debt as well as paying dividends to our shareholders," Lewis said.
CONTINUING BUSINESS SEGMENT RESULTS
Northwestern Energy, the electric and natural gas business of
NorthWestern, continued to show improved results in the second quarter of 2002,
with operating income of $35.0 million and earnings before interest, taxes,
depreciation and amortization (EBITDA) of $50.9 million, compared with operating
income of $13.0 million and EBITDA of $17.0 million in the second quarter of
2001. For the first six months of 2002, operating income was $78.8 million and
EBITDA was $107.4 million, compared with operating income of $31.2 million and
EBITDA of $39.3 million in the same period of 2001. Revenues for the second
quarter of 2002 were $175.1 million, compared with $59.7 million in the same
period of 2001. Revenues for the first half of 2002 were $348.6 million,
compared with $165.4 million in the first half of 2001.
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<Page>
NorthWestern Reports Second Quarter 2002 EPS of 49 Cents
Aug. 8, 2002
Page 3
NorthWestern Energy's results during the second quarter of 2002 and for five
months of the first half of 2002 include Montana energy operations, which were
acquired in February 2002.
"Our expanded energy operations continued to demonstrate strong results
during the second quarter as the integration of our Montana energy operations
are going smoothly and our South Dakota and Nebraska energy operations continued
to perform strongly," said Richard R. Hylland, NorthWestern's president and
chief operating officer. "As we enter the second half of 2002, NorthWestern
Energy is well on track to meet our performance expectations of $225 to $235
million in EBITDA, which excludes $22 million in EBITDA from January 2002
results from our Montana operations. We are comfortable in targeting annualized
EBITDA in excess of $250 million in 2003, while requiring about $65 million in
maintenance capital expenditures."
Second quarter 2002 results for Expanets, NorthWestern's communications
services business, were significantly improved with $11.0 million in operating
income and $24.9 million in EBITDA, compared with an operating loss of $14.6
million and negative EBITDA of $2.0 million in the same quarter in 2001. For the
first half of 2002, Expanets had operating income of $8.3 million and EBITDA of
$33.5 million, compared with an operating loss of $63.3 million and negative
EBITDA of $39.7 million in the first half of 2001. Revenues for the second
quarter of 2002 were $210.3 million, representing an increase of 4.1 percent
over revenues in the first quarter of 2002. Revenues for the second quarter and
first half of 2002 decreased $91 million and $157.9 million, respectively, in
comparison with the same periods for 2001, reflecting Expanets' efforts to focus
on building higher-margin sales and soft market conditions.
"Expanets' outstanding performance during the first half of 2002 confirms
the strength of our mid-market communications services business strategy. As the
largest U.S. mid-market communications services and solutions company, Expanets
has the flexibility to respond effectively to changing market conditions by
transforming its cost structure. Expanets' cost structure improvement and
increased sales focus on value-added services and applications improved gross
margins as a percentage of revenues to 44.5 percent for the second quarter of
2002 and 41.4 percent for the first six months of 2002, compared with gross
margins as a percentage of revenues of 38.0 percent in the second quarter and
34.6 percent of the first half of 2001," Hylland said. "Expanets successfully
reduced sales, general and administrative (SG&A) expenses as a percentage of
revenues in the second quarter of 2002 to 32.7 percent from 38.6 percent of
revenues in the second quarter of 2001. Despite soft market conditions, we
expect Expanets to continue a strong performance in the remaining two quarters
of 2002, and
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NorthWestern Reports Second Quarter 2002 EPS of 49 Cents
Aug. 8, 2002
Page 4
we are comfortable with our previously announced full-year 2002 EBITDA target of
$80 to $87 million and an annualized EBITDA run rate in excess of $100 million
in 2003."
Blue Dot, NorthWestern's energy-related heating, ventilation and air
conditioning services provider, reported second quarter 2002 operating income of
$2.4 million and EBITDA of $4.2 million, compared with operating income of $2.7
million and EBITDA of $6.8 million in the second quarter of 2001. Revenues for
the second quarter of 2002 were $117.8 million, compared with $111.7 million in
the second quarter of 2001.
"Blue Dot had improved performance in June 2002 with $2.8 million in
EBITDA as seasonal revenues picked up and we began to see improvement resulting
from our Operational Excellence initiatives," Hylland said. "Despite the impact
of soft economic conditions, we are targeting improvement for Blue Dot during
the second half of 2002. To drive improved results, Blue Dot is developing and
implementing initiatives to accelerate sales growth and build organizational
effectiveness to improve the company's ability to integrate and execute its
business plan."
Hylland also said that NorthWestern's Operational Excellence initiatives
have achieved $110 million in reduced expenses on a consolidated basis during
the first half of 2002 which has resulted in the company's SG&A as a percent of
revenues declining to 32.2 percent, compared with 36.0 percent in the first half
of 2001. "The first phase of our operational excellence initiatives have
included significant efficiency programs ranging from resizing our cost
structure to shared support services between operations, leveraged purchasing
and other business improvements. While these efforts have been extremely
successful, we will be implementing a second phase of initiatives beginning in
the third quarter that are focused on customer facing enhancements, operating
processes and information system re-engineering which we believe will further
improve our customer service capabilities, drive revenue growth and continue to
reduce our cost structure," Hylland said. "Our efforts are now targeting up to
$170 million in annualized SG&A reductions and we are focusing on reducing our
SG&A as a percentage of revenues to below 30 percent by year end 2002."
Kipp D. Orme, vice president and chief financial officer, said that the
transition of independent auditors to Deloitte & Touche has gone smoothly since
the firm was selected by NorthWestern's audit committee and the Board of
Directors in May 2002. Deloitte & Touche has nearly completed its review of
NorthWestern's second quarter results that will be filed on Form 10-Q on Aug.
14, 2002. As previously disclosed, NorthWestern implemented, effective Jan. 1,
2002, the new accounting standard, Statement of Financial Accounting Standards
No. 142,
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NorthWestern Reports Second Quarter 2002 EPS of 49 Cents
Aug. 8, 2002
Page 5
Goodwill and Other Intangible Assets, which eliminates the requirement to
amortize goodwill and limits amortization of other intangibles to instances
where the assets have a finite determinable life. Orme said that an independent,
third-party assessment has recently been completed and that NorthWestern
believes that there will be no impairment to goodwill or other intangibles
resulting from the adoption of SFAS No. 142.
DISCONTINUED OPERATIONS
NorthWestern's strategy is to focus on its growing energy and
communications businesses. Consistent with this strategic focus, in the first
quarter of 2002, NorthWestern adopted discontinued operations accounting for
CornerStone Propane Partners LP and recorded a non-cash, after-tax charge of $40
million reflecting the change in the company's carrying value in the
partnership. On Aug. 5, 2002, CornerStone reported that it had elected not to
make an interest payment on third-party senior secured debt that was due on July
31 and that it was reviewing financial restructuring and strategic options,
including the commencement of a Chapter 11 case under the United States
Bankruptcy Code. As previously stated on July 31, 2002, NorthWestern is
evaluating CornerStone's financial restructuring and the impact upon creditors
of the partnership, including NorthWestern, and would expect to reflect any
resulting financial implications in the third quarter of 2002.
Including discontinued operations, NorthWestern's second quarter 2002 net
income was $15.8 million, or 30 cents per diluted share, compared with $10.8
million or 38 cents per diluted share in the second quarter of 2001. Including
discontinued operations and extraordinary charges in the first half,
NorthWestern had a net loss of $13.7 million, or $1.01 per diluted share
compared to net income of $29.2 million, or $1.08 per diluted share in the first
half of 2001.
CONFERENCE CALL
As previously announced, NorthWestern will conduct a conference call with
investors today at 10 a.m. Central time. The conference call will be webcast
live via the NorthWestern Corporation Web site at WWW.NORTHWESTERN.COM or at
WWW.COMPANYBOARDROOM.COM.
ABOUT NORTHWESTERN
NorthWestern Corporation, a FORTUNE 500 company, is a leading provider of
services and solutions to more than 2 million customers across America in the
energy and communications sectors. NorthWestern's partner businesses include
NorthWestern Energy, a provider of electricity, natural gas and related services
to customers in Montana, Nebraska and South Dakota; Expanets, the largest
provider of networked
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<Page>
NorthWestern Reports Second Quarter 2002 EPS of 49 Cents
Aug. 8, 2002
Page 6
communications solutions and services to mid-market businesses in the United
States; and Blue Dot, a leading provider of air conditioning, heating, plumbing
and related services.
FORWARD-LOOKING STATEMENTS
STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: ALL
STATEMENTS CONTAINED HEREIN, AS WELL AS STATEMENTS MADE IN PRESS RELEASES AND
ORAL STATEMENTS THAT MAY BE MADE BY US OR BY OFFICERS, DIRECTORS OR EMPLOYEES
ACTING ON OUR BEHALF, THAT ARE NOT STATEMENTS OF HISTORICAL FACT CONSTITUTE
"FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND
UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE OUR ACTUAL
RESULTS TO BE MATERIALLY DIFFERENT FROM HISTORICAL RESULTS OR FROM ANY FUTURE
RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. AMONG THE
FACTORS THAT COULD CAUSE OUR ACTUAL RESULTS OR OUTCOMES TO DIFFER MATERIALLY
ARE: THE ADVERSE IMPACT OF WEATHER CONDITIONS AND SEASONAL FLUCTUATIONS;
UNSCHEDULED GENERATION OUTAGES; MAINTENANCE OR REPAIRS; UNANTICIPATED CHANGES TO
FOSSIL FUEL OR GAS SUPPLY COSTS OR AVAILABILITY DUE TO HIGHER DEMAND, SHORTAGES,
TRANSPORTATION PROBLEMS OR OTHER DEVELOPMENTS; DEVELOPMENTS IN THE FEDERAL AND
STATE REGULATORY ENVIRONMENT AND THE TERMS ASSOCIATED WITH OBTAINING REGULATORY
APPROVAL AND RATE ORDERS; COSTS ASSOCIATED WITH ENVIRONMENTAL LIABILITIES AND
COMPLIANCE WITH ENVIRONMENTAL LAWS; THE RATE OF GROWTH AND ECONOMIC CONDITIONS
IN OUR SERVICE TERRITORIES AND THOSE OF OUR SUBSIDIARIES; THE SPEED AND DEGREE
TO WHICH COMPETITION ENTERS THE INDUSTRIES AND MARKETS IN WHICH OUR BUSINESSES
OPERATE; THE TIMING AND EXTENT OF CHANGES IN INTEREST RATES AND FLUCTUATIONS IN
ENERGY-RELATED COMMODITY PRICES; RISKS ASSOCIATED WITH ACQUISITIONS, TRANSITION
AND INTEGRATION OF ACQUIRED COMPANIES, INCLUDING NORTHWESTERN ENERGY LLC AND THE
GROWING AND EMERGING MARKETS DIVISION OF LUCENT TECHNOLOGIES, INC., AND THE
IMPLEMENTATION OF INFORMATION SYSTEMS AND REALIZATION OF EFFICIENCIES IN EXCESS
OF ANY RELATED RESTRUCTURING CHARGES; A LACK OF MINORITY INTEREST BASIS, WHICH
REQUIRES US TO RECOGNIZE AN INCREASED SHARE OF OPERATING LOSSES AT CERTAIN OF
OUR SUBSIDIARIES; OUR ABILITY TO RECOVER TRANSITION COSTS; DISALLOWANCE BY THE
MONTANA PUBLIC SERVICE COMMISSION OF THE RECOVERY OF THE COSTS INCURRED IN
ENTERING INTO OUR DEFAULT SUPPLY PORTFOLIO CONTRACTS WHILE WE ARE REQUIRED TO
ACT AS THE "DEFAULT SUPPLIER"; DISRUPTIONS AND ADVERSE EFFECTS IN THE CAPITAL
MARKET DUE TO THE CHANGING ECONOMIC ENVIRONMENT; OUR CREDIT RATINGS WITH
MOODY'S, STANDARD & POOR'S AND FITCH; POTENTIAL DELAYS IN FINANCINGS OR
SECURITIES AND EXCHANGE COMMISSION FILINGS BECAUSE WE CHANGED AUDITORS; OUR
SUBSTANTIAL INDEBTEDNESS, WHICH COULD LIMIT OUR OPERATING FLEXIBILITY AND
ABILITY TO BORROW ADDITIONAL FUNDS; OUR ABILITY TO OBTAIN ADDITIONAL CAPITAL TO
REFINANCE OUR INDEBTEDNESS THAT IS SCHEDULED TO MATURE AND FOR WORKING CAPITAL
PURPOSES; CHANGES IN CUSTOMER USAGE PATTERNS AND PREFERENCES; POSSIBLE FUTURE
ACTIONS AND DEVELOPMENTS OF CORNERSTONE PROPANE PARTNERS LP; AND CHANGING
CONDITIONS IN THE ECONOMY AND CAPITAL MARKETS AND OTHER FACTORS IDENTIFIED FROM
TIME TO TIME IN OUR FILINGS WITH THE SEC. THIS NEWS RELEASE SHOULD BE READ IN
CONJUNCTION WITH OUR ANNUAL REPORT ON FORM 10K FOR 2001, AND ANY SUBSEQUENT
QUARTERLY REPORTS ON FORM 10-Q AND CURRENT REPORTS ON FORM 8-K, WHICH CAN BE
LOCATED AT WWW.SEC.GOV OR REQUESTED FROM THE COMPANY.
ANY FORWARD-LOOKING STATEMENT SPEAKS ONLY AS OF THE DATE ON WHICH SUCH
STATEMENT IS MADE, AND, EXCEPT AS REQUIRED BY LAW, WE UNDERTAKE NO OBLIGATION TO
UPDATE ANY FORWARD-LOOKING STATEMENT TO REFLECT EVENTS OR CIRCUMSTANCES AFTER
THE DATE ON WHICH SUCH STATEMENT IS MADE OR TO REFLECT THE OCCURRENCE OF
UNANTICIPATED EVENTS. NEW FACTORS EMERGE FROM TIME TO TIME, AND IT IS NOT
POSSIBLE FOR MANAGEMENT TO PREDICT ALL SUCH FACTORS.
###
<Page>
NorthWestern Corporation Reports Second Quarter Results
Aug. 8, 2002
Page 7
NORTHWESTERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<Table>
<Caption>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2002 2001 2002 2001
--------- --------- --------- ---------
OPERATING REVENUES $ 515,652 $ 476,846 $ 995,765 $ 954,438
COST OF SALES 261,740 288,008 531,431 610,456
--------- --------- --------- ---------
GROSS MARGIN 253,912 188,838 464,334 343,982
--------- --------- --------- ---------
OPERATING EXPENSES:
Selling, general and administrative 172,831 170,726 320,981 343,541
Depreciation 25,424 9,739 45,959 18,727
Amortization of intangibles 6,841 11,608 13,930 22,051
--------- --------- --------- ---------
205,096 192,073 380,870 384,319
--------- --------- --------- ---------
OPERATING INCOME (LOSS) 48,816 (3,235) 83,464 (40,337)
Interest Expense (31,063) (11,689) (52,749) (24,082)
Investment Income and Other (2,497) 1,675 (1,803) 2,853
--------- --------- --------- ---------
INCOME (LOSS) BEFORE INCOME TAXES AND
MINORITY INTERESTS 15,256 (13,249) 28,912 (61,566)
Benefit (Provision) for Income Taxes (2,466) (3,781) (7,077) 11,893
--------- --------- --------- ---------
INCOME (LOSS) BEFORE MINORITY INTERESTS 12,790 (17,030) 21,835 (49,673)
Minority Interests 8,100 29,857 23,014 75,693
--------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS 20,890 12,827 44,849 26,020
Discontinued Operations, Net of Tax and
Minority Interests (5,086) (2,047) (45,086) 3,149
--------- --------- --------- ---------
INCOME (LOSS) BEFORE EXTRAORDINARY ITEM 15,804 10,780 (237) 29,169
Extraordinary Item, Net of Tax of $7,241 -- -- (13,447) --
--------- --------- --------- ---------
NET INCOME (LOSS) 15,804 10,780 (13,684) 29,169
Minority Interests on Preferred Securities
of Subsidiary Trusts (7,474) (1,650) (13,699) (3,300)
Dividends on Cumulative Preferred Stock (48) (48) (96) (96)
--------- --------- --------- ---------
EARNINGS (LOSS) ON COMMON STOCK $ 8,282 $ 9,082 $ (27,479) $ 25,773
========= ========= ========= =========
AVERAGE COMMON SHARES OUTSTANDING 27,397 23,669 27,397 23,552
EARNINGS (LOSS) PER AVERAGE COMMON SHARE
Continuing operations $ 0.49 $ 0.47 $ 1.13 $ 0.96
Discontinued operations (0.19) (0.09) (1.65) 0.13
Extraordinary item -- -- (0.49) --
--------- --------- --------- ---------
Basic $ 0.30 $ 0.38 $ (1.01) $ 1.09
========= ========= ========= =========
Continuing operations $ 0.49 $ 0.47 $ 1.13 $ 0.95
Discontinued operations (0.19) (0.09) (1.65) 0.13
Extraordinary item -- -- (0.49) --
--------- --------- --------- ---------
Diluted $ 0.30 $ 0.38 $ (1.01) $ 1.08
========= ========= ========= =========
</Table>
<Page>
NorthWestern Corporation Reports Second Quarter Results
Aug. 8, 2002
Page 8
NORTHWESTERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands)
<Table>
<Caption>
June 30, December 31,
2002 2001
----------- -----------
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 79,717 $ 37,158
Accounts receivable, net 379,121 260,485
Inventories 75,058 79,719
Other 88,131 69,487
Current assets of discontinued operations 45,408 181,697
----------- -----------
TOTAL CURRENT ASSETS 667,435 628,546
----------- -----------
PROPERTY, PLANT AND EQUIPMENT, NET 1,782,676 496,241
GOODWILL AND OTHER INTANGIBLE ASSETS, NET 660,360 640,590
OTHER:
Investments 93,499 62,959
Regulatory assets 94,433 20,415
Deferred tax asset 12,825 17,374
Other 104,836 73,413
Noncurrent assets of discontinued operations 673,461 695,197
----------- -----------
TOTAL ASSETS $ 4,089,525 $ 2,634,735
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 173,933 $ 155,000
Current maturities of long-term debt - nonrecourse 7,125 22,817
Short-term debt - nonrecourse 130,350 178,628
Accounts payable 99,048 122,266
Accrued expenses 413,848 216,345
Current liabilities of discontinued operations 87,321 230,070
----------- -----------
TOTAL CURRENT LIABILITIES 911,625 925,126
----------- -----------
LONG-TERM DEBT 1,396,914 373,350
LONG-TERM DEBT OF SUBSIDIARIES - NONRECOURSE 36,933 37,999
OTHER NONCURRENT LIABILITIES 369,132 75,040
NONCURRENT LIABILITIES & MINORITY INTERESTS OF DISCONTINUED OPERATIONS 632,481 605,325
----------- -----------
TOTAL LIABILITIES 3,347,085 2,016,840
----------- -----------
MINORITY INTERESTS 11,106 30,067
PREFERRED STOCK, PREFERENCE STOCK AND PREFERRED SECURITIES:
Preferred stock - 4 1/2% series 2,600 2,600
Redeemable preferred stock - 6 1/2% series 1,150 1,150
Preference stock -- --
Corporation obligated mandatorily redeemable
preferred securities of subsidiary trusts 370,250 187,500
----------- -----------
TOTAL PREFERRED STOCK, PREFERENCE STOCK AND PREFERRED SECURITIES 374,000 191,250
----------- -----------
SHAREHOLDERS' EQUITY:
Common stock, par value $1.75; authorized 50,000,000 shares;
issued and outstanding 27,396,762 47,942 47,942
Paid-in capital 240,891 240,797
Treasury stock, at cost (3,500) (3,681)
Retained earnings 67,432 112,307
Accumulated other comprehensive income (loss) 4,569 (787)
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 357,334 396,578
----------- -----------
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 4,089,525 $ 2,634,735
=========== ===========
</Table>
<Page>
NorthWestern Corporation Reports Second Quarter Results
Aug. 8, 2002
Page 9
NORTHWESTERN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (In Thousands)
<Table>
<Caption>
Six Months Ended
June 30
2002 2001
--------- ---------
OPERATING ACTIVITIES:
Net income (loss) $ (13,684) $ 29,169
Items not affecting cash:
Depreciation 45,959 18,727
Amortization 13,930 22,051
Loss on discontinued operations 40,000 --
Extraordinary item, net of taxes 13,447 --
Deferred income taxes 1,928 (87)
Minority interests in net losses of consolidated subsidiaries (23,014) (75,693)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable (37,079) 16,827
Inventories 21,733 8,964
Other current assets 9,762 (5,058)
Accounts payable (46,311) 22,598
Accrued expenses 24,246 (4,238)
Change in noncurrent assets 4,388 3,819
Change in noncurrent liabilities (15,394) 713
Other, net 12,273 (267)
--------- ---------
CASH FLOWS PROVIDED BY CONTINUING OPERATIONS 52,184 37,525
Change in net assets of discontinued operations 2,432 23,509
--------- ---------
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES 54,616 61,034
--------- ---------
INVESTMENT ACTIVITIES:
Property, plant and equipment additions (21,749) (20,486)
Proceeds from sale of assets 22,441 --
Sale (purchase) of noncurrent investments and assets, net (12,641) (2,487)
Acquisitions and growth expenditures, net of cash received (559,909) (40,368)
--------- ---------
CASH FLOWS USED IN INVESTING ACTIVITIES (571,858) (63,341)
--------- ---------
FINANCING ACTIVITIES:
Dividends on common and preferred stock (17,492) (14,108)
Minority interest on preferred securities of subsidiary trusts (13,699) (3,300)
Issuance of long-term debt 719,118 --
Issuance of preferred securities of subsidiary trusts 117,750 --
Repayment of long-term debt (2,009) --
Line of credit (repayments) borrowings, net (132,000) 66,700
Financing costs (34,194) --
Subsidiary repurchase of minority interests (15,660) (13,368)
Line of credit repayments of subsidiaries, net (12,951) (8,578)
Issuance of nonrecourse subsidiary debt 179 597
Repayment of nonrecourse subsidiary debt (57,119) (11,078)
Proceeds from termination of hedge 7,878 --
--------- ---------
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 559,801 16,865
--------- ---------
INCREASE IN CASH AND CASH EQUIVALENTS 42,559 14,558
Cash and Cash Equivalents, beginning of period 37,158 43,385
--------- ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 79,717 $ 57,943
========= =========
</Table>
<Page>
NorthWestern Corporation Reports Second Quarter Results
Aug. 8, 2002
Page 10
<Table>
<Caption>
SIX MONTHS ENDED JUNE 30, 2002
PARENT COMPANY
-----------------------------------------------------
TOTAL TOTAL
NATURAL ELECTRIC & PARENT
ELECTRIC GAS NATURAL GAS ALL OTHER COMPANY COMMUNICATIONS HVAC TOTAL
-------- -------- ----------- --------- --------- -------------- --------- ---------
Operating Revenues $216,742 $131,904 $ 348,646 $ 22,681 $ 371,327 $ 412,180 $ 212,258 $ 995,765
Cost of Sales 71,160 74,963 146,123 9,954 156,077 241,415 133,939 531,431
-------- -------- --------- --------- --------- --------- --------- ---------
Gross Margin 145,582 56,941 202,523 12,727 215,250 170,765 78,319 464,334
Selling, general and administrative 71,525 23,631 95,156 13,635 108,791 137,220 74,970 320,981
Depreciation 22,903 5,645 28,548 1,434 29,982 11,569 4,408 45,959
Goodwill & intangibles amortization -- -- -- 18 18 13,686 226 13,930
-------- -------- --------- --------- --------- --------- --------- ---------
Operating Income (Loss) $ 51,154 $ 27,665 78,819 (2,360) 76,459 8,290 (1,285) 83,464
======== ========
Interest expense (32,307) (6,323) (38,630) (13,985) (134) (52,749)
Investment income and other 1,125 (3,091) (1,966) 126 37 (1,803)
--------- --------- --------- --------- --------- ---------
Income (loss) before taxes and 47,637 (11,774) 35,863 (5,569) (1,382) 28,912
minority interests
Benefit (Provision) for income taxes (17,423) 9,520 (7,903) 432 394 (7,077)
--------- --------- --------- --------- --------- ---------
Income (loss) before minority interests $ 30,214 $ (2,254) $ 27,960 $ (5,137) $ (988) $ 21,835
========= ========= ========= ========= ========= =========
<Caption>
SIX MONTHS ENDED JUNE 30, 2001
PARENT COMPANY
-----------------------------------------------------
TOTAL TOTAL
NATURAL ELECTRIC & PARENT
ELECTRIC GAS NATURAL GAS ALL OTHER COMPANY COMMUNICATIONS HVAC TOTAL
-------- -------- ----------- --------- --------- -------------- --------- ---------
Operating Revenues $ 59,530 $105,854 $ 165,384 $ 7,686 $ 173,070 $ 570,064 $ 211,304 $ 954,438
Cost of Sales 10,785 90,435 101,220 4,974 106,194 372,932 131,330 610,456
-------- -------- --------- --------- --------- --------- --------- ---------
Gross Margin 48,745 15,419 64,164 2,712 66,876 197,132 79,974 343,982
Selling, general and administrative 16,904 7,939 24,843 10,885 35,728 236,860 70,953 343,541
Depreciation 6,424 1,707 8,131 929 9,060 5,206 4,461 18,727
Goodwill & intangibles amortization -- -- -- 140 140 18,409 3,502 22,051
Restructuring -- -- -- -- -- -- -- --
-------- -------- --------- --------- --------- --------- --------- ---------
Operating Income (Loss) $ 25,417 $ 5,773 31,190 (9,242) 21,948 (63,343) 1,058 (40,337)
======== ========
Interest expense (4,357) (11,118) (15,475) (6,094) (2,513) (24,082)
Investment income and other 166 2,251 2,417 301 135 2,853
--------- --------- --------- --------- --------- ---------
Income (loss) before taxes and 26,999 (18,109) 8,890 (69,136) (1,320) (61,566)
minority interests
Benefit (Provision) for income taxes (9,223) 4,534 (4,689) 17,461 (879) 11,893
--------- --------- --------- --------- --------- ---------
Income (loss) before minority interests $ 17,776 $ (13,575) $ 4,201 $ (51,675) $ (2,199) $ (49,673)
========= ========= ========= ========= ========= =========
</Table>
<Page>
NorthWestern Corporation Reports Second Quarter Results
Aug. 8, 2002
Page 11
<Table>
<Caption>
QUARTER ENDED JUNE 30, 2002
PARENT COMPANY
-----------------------------------------------------
TOTAL TOTAL
NATURAL ELECTRIC & PARENT
ELECTRIC GAS NATURAL GAS ALL OTHER COMPANY COMMUNICATIONS HVAC TOTAL
-------- -------- ----------- --------- --------- -------------- --------- ---------
Operating Revenues $121,406 $53,660 $ 175,066 $ 12,536 $ 187,602 $ 210,275 $ 117,775 $ 515,652
Cost of Sales 39,544 27,000 66,544 4,335 70,879 116,665 74,196 261,740
-------- ------- --------- --------- --------- --------- --------- ---------
Gross Margin 81,862 26,660 108,522 8,201 116,723 93,610 43,579 253,912
Selling, general and administrative 43,820 13,840 57,660 7,108 64,768 68,721 39,342 172,831
Depreciation 12,726 3,107 15,833 731 16,564 7,075 1,785 25,424
Goodwill & intangibles amortization -- -- -- 11 11 6,791 39 6,841
-------- ------- --------- --------- --------- --------- --------- ---------
Operating Income (Loss) $ 25,316 $ 9,713 35,029 351 35,380 11,023 2,413 48,816
======== =======
Interest expense (20,081) (2,938) (23,019) (8,011) (33) (31,063)
Investment income and other 842 (3,490) (2,648) 127 24 (2,497)
--------- --------- --------- --------- --------- ---------
Income (loss) before taxes and 15,790 (6,077) 9,713 3,139 2,404 15,256
minority interests
Benefit (Provision) for income taxes (5,621) 5,890 269 (1,775) (960) (2,466)
--------- --------- --------- --------- --------- ---------
Income (loss) before minority interests $ 10,169 $ (187) $ 9,982 $ 1,364 $ 1,444 $ 12,790
========= ========= ========= ========= ========= =========
<Caption>
QUARTER ENDED JUNE 30, 2001
PARENT COMPANY
-----------------------------------------------------
TOTAL TOTAL
NATURAL ELECTRIC & PARENT
ELECTRIC GAS NATURAL GAS ALL OTHER COMPANY COMMUNICATIONS HVAC TOTAL
-------- -------- ----------- --------- --------- -------------- --------- ---------
Operating Revenues $ 30,169 $29,535 $ 59,704 $ 4,202 $ 63,906 $ 301,267 $ 111,673 $ 476,846
Cost of Sales 5,461 24,120 29,581 2,682 32,263 186,924 68,821 288,008
-------- ------- --------- --------- --------- --------- --------- ---------
Gross Margin 24,708 5,415 30,123 1,520 31,643 114,343 42,852 188,838
Selling, general and administrative 9,417 3,664 13,081 5,246 18,327 116,355 36,044 170,726
Depreciation 3,212 872 4,084 438 4,522 2,890 2,327 9,739
Goodwill & intangibles amortization -- -- -- 111 111 9,735 1,762 11,608
Restructuring -- -- -- -- -- --
-------- ------- --------- --------- --------- --------- --------- ---------
Operating Income (Loss) $ 12,079 $ 879 12,958 (4,275) 8,683 (14,637) 2,719 (3,235)
======== =======
Interest expense (2,154) (4,642) (6,796) (3,736) (1,157) (11,689)
Investment income and other 140 1,009 1,149 453 73 1,675
--------- --------- --------- --------- --------- ---------
Income (loss) before taxes and 10,944 (7,908) 3,036 (17,920) 1,635 (13,249)
minority interests
Benefit (Provision) for income taxes (3,699) 1,246 (2,453) -- (1,328) (3,781)
--------- --------- --------- --------- --------- ---------
Income (loss) before minority interests $ 7,245 $ (6,662) $ 583 $ (17,920) $ 307 $ (17,030)
========= ========= ========= ========= ========= =========
</Table>