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Minnesota Power Acquires Canada's Largest Auto Remarketing Company

20 June 2000

Minnesota Power Acquires Canada's Largest Auto Remarketing Company

    DULUTH, Minn. - Minnesota Power, Inc.'s ADESA subsidiary has acquired the 
Canadian Auction Group (CAG), a wholesale auto remarketing company with 13 
auction sites and dealer financing operations located across Canada.  For the 
twelve months ended May 31, 2000, CAG auctions sold approximately 200,000 
vehicles and generated USD $68 million in revenues. The acquisition is subject 
to post-closing review by Canadian regulatory authorities.  ADESA currently 
operates 32 additional auctions throughout North America.

    "This deal expands our presence in major Canadian markets and allows us to
integrate and enhance the quality of the services we provide to our Canadian
customers," said Jim Hallett, executive vice-president of Minnesota Power and
president of ADESA Corporation.  "As a Canadian citizen, I am pleased that we
are making this investment in Canada.  Combined with our existing auctions in
Ottawa, Halifax, Montreal and Vancouver and another opening soon in Calgary,
the CAG acquisition establishes ADESA Canada as the premier automotive
services company in Canada."

    ADESA Canada also recently completed acquisition of the remaining
27 percent of Impact Auto Auctions, Canada's largest national salvage auction
chain with 11 locations in six provinces.  With the two acquisitions,
Minnesota Power increased its investment in automotive services by about USD
$160 million.

    "These acquisitions are an excellent strategic fit as we continue building
shareholder value by growing our automotive business," said Ed Russell,
chairman of Minnesota Power.

    The acquisitions were funded by Minnesota Power's investment portfolio and
the recent sale of 4.7 million shares of ACE Limited .  Cash
proceeds from the stock sale were about USD $127 million in addition to USD
$25 million received last December as a part of the Capital Re Corporation
merger with ACE.

    "In May, Minnesota Power recorded a USD $30.4 million after-tax gain on
the ACE sale, resulting in a one-time gain of 44 cents per share that will be
reflected in second quarter financials," Russell said.

    Minnesota Power is a multi-services company with corporate headquarters in
Duluth, Minn.  Minnesota Power holdings include the second largest wholesale
automobile auction network in North America; the leading provider of
independent auto dealer inventory financing; the largest investor-owned water
utilities in Florida and North Carolina; significant real estate holdings in
Florida and a low-cost electric utility that serves some of the largest
industrial customers in the United States.

    The statements contained in this release and statements that the company
may make orally in connection with this release that are not historical facts
are forward-looking statements.  Actual results may differ materially from
those projected in the forward-looking statements.  These forward-looking
statements involve risks and uncertainties and investors are directed to the
risks discussed in documents filed by the company with the Securities and
Exchange Commission.