Draft order may deny Northwestern’s sale to BBI

23 May 2007 — NorthWestern Corporation d/b/a NorthWestern Energy announced that the Montana Public Service Commission (MPSC) has unanimously directed its staff to prepare a draft order denying NorthWestern’s sale to Babcock & Brown Infrastructure Limited. The draft order may be presented to the Commission for a vote sometime in late June 2007.

“We are obviously disappointed by this development,” said Mike Hanson, president and CEO. “However, we will wait until the written order is issued before deciding on our next steps. We remain committed to this transaction and to working through the process.”

On April 25, 2006, NorthWestern and BBI announced that they had reached a definitive agreement under which BBI would acquire NorthWestern in an all-cash transaction at $37 per share. Under the agreement, the acquisition was subject to, among other conditions, shareholder and regulatory approval.