Sierra Pacific Resources
Contact: Karl Walquist: 775-834-3891
Analyst Contact:
Vicki Erickson: 775-834-5646
Phone: please see above

For Immediate Release

Sierra Pacific Resources Issues $300 Million In Convertible Debt;To Retire Floating Rate Notes Due in April 2003
Reno, NevadaÂ- Sierra Pacific Resources (NYSE: SRP) announced today that it has agreed to issue in a private placement $300 million of convertible notes with a coupon of 7.25 percent. The notes mature in 2010 and will be convertible into shares of the company's common stock, and cash, at approximately a 22-percent premium over the $3.75 closing price of the stock today. The company anticipates that the transaction will close on February 14, 2003.

The issuance of the convertible notes is consistent with Sierra Pacific's strategy to refinance its floating rate notes due April 2003 in advance of their maturity, reduce its cash requirements and strengthen its balance sheet. In addition, the incremental proceeds raised in the transaction will provide approximately $50 million of liquidity for the company.

Walter Higgins, chairman, president and chief executive officer of Sierra Pacific Resources, said,"We are especially pleased that the transaction announced this morning was achieved so rapidly because it places us on solid financial footing to continue rebuilding and strengthening our capital structure. Redeeming the notes due this April is a key step in the process of stabilizing our financial position. The flexibility and liquidity created by this transaction allows us to place greater focus on the operational basics of our business so that we can better serve our customers throughout Nevada and the Lake Tahoe region of California and restore our company's financial health."

The offering was made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933.

Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Company, the electric utility for most of southern Nevada, and Sierra Pacific Power Company, the electric utility for most of northern Nevada and the Lake Tahoe area of California. Sierra Pacific Power Company also distributes natural gas in the Reno-Sparks area of northern Nevada. Other subsidiaries include the Tuscarora Gas Pipeline Company, which owns 50 percent interest in an interstate natural gas transmission partnership, Sierra Pacific Communications, a telecommunications company, and Sierra Pacific Energy (e-three), an energy conservation services company.

This press release does not constitute an offer to sell these securities, nor is it a solicitation of an offer to purchase these securities.

This press release contains forward-looking statements regarding the future performance of Sierra Pacific Resources within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to the Company's ability to receive dividends from its subsidiaries in the near future and the financial performance of the Company's subsidiaries, particularly Nevada Power Company and Sierra Pacific Power Company. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company and its subsidiaries are contained in their Quarterly Report on Form 10-Q for the quarter ended September 30, 2002 filed with the SEC. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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