1 April 2003 - CMS Energy today announced 2002 results saying that it had improved its liquidity by $1.4bn, while reporting a net loss of $620 m, or $4.46 per share. The Dearborn, Michigan-based company is in the process of selling off assets and trying to retire debt to improve its financial condition.

CMS reaffirmed 2003 earnings guidance and provided an update on its financial improvement plan, and announced the completion of its 2000 and 2001 re-audit.

The $620m loss compares with a loss of $448m last year and the company had ongoing net income of $213 million or $1.53 per share compared to $9m or $0.08 per share for 2001.

In a statement CMS said it was continuing to make steady progress on its financial improvement plan in four major areas -- financings, liquidity, asset sales, and cost control.

CMS Energy said that the re-audit of its consolidated financial results for 2000 and 2001 has been completed and the appropriate amended forms have been filed with the U.S. Securities Exchange Commission. CMS Energy expects the review of the 2001 quarterly results to be completed, and updated financial statements for those periods filed, by mid-summer.

The Company said 2002 reported results were a loss of $4.46 per share, largely due to a goodwill impairment charge for Panhandle, non-cash write downs associated with CMS Field Services, and impairments of the Dearborn Industrial Generation project and other independent power projects.

The ongoing earnings per share were $1.53, including CMS Panhandle operating earnings. Management believes that ongoing earnings provide a key measure of the Company's current operating financial performance, unaffected by losses or gains caused by net asset writedowns, impairments, sales and other items detailed in the attached chart.

"The 2002 results and our projections for 2003 are in line with our previous guidance. Our core businesses are operating well and we're working hard to improve our financial results and to continue to deliver on our commitments," said Ken Whipple, CMS Energy's chairman and chief executive officer.

CMS Energy Corporation is an integrated energy company, which has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, and independent power generation.

On Monday CMS said it had secured a new $850m financing package from a group of lenders that will help its plan to shore up its balance sheet. CMS said the $850m deal will give it enough money to meet all of its financing requirements through the third quarter of 2004.

The package includes a $441m revolving credit facility due in 13 months, which will be used to retire debt, and for corporate operations. It also includes a $409m credit facility secured mostly with CMS stock, that has a 13-month maturity with the option to add six more months.

The facility is revamping of two existing revolving credit lines, on which CMS owes a total of $409 million. A portion of it is expected to paid off early with the proceeds of announced asset sales, CMS said.