Entergy offers second quarter earnings guidance, on track to achieve 2002 guidance

NEW ORLEANS, July 8, 2002 — In accordance with Regulation FD, Entergy Corp. recently indicated that it expects to report second quarter 2002 financial results of at least $1.15 in operational earnings per share, including the impact of weather which was near normal during the period.

This level of earnings exceeds the current consensus estimate and is consistent with previously stated full year earnings guidance. The current published First Call consensus estimate for Entergy’s second quarter earnings is $1.11 per share. Entergy reaffirmed operational earnings guidance for the full year 2002 to be in the range of $3.40 to $3.60 per share.

Entergy noted that it expects Utility results to be improved over second quarter 2001 due in part to higher sales volumes reflecting some firming in the economy. Entergy Nuclear is also expected to record stronger results compared to second quarter 2001 due to the contribution of the Indian Point 2 nuclear plant in Buchanan, N.Y. which was acquired in September 2001.

Also, the absence of refueling outages in second quarter 2002 is expected to positively impact Entergy Nuclear’s results compared to the same period in 2001 when two plant refueling outages were completed.

Second quarter 2002 results at Energy Commodity Services are expected to be lower when compared to the same quarter a year ago when gas trading produced very strong results. Energy Commodity Services includes the operations of Entergy-Koch, the company’s provider of wholesale energy marketing and trading services, and the recently restructured Entergy Wholesale Operations businesses.

Results at Parent & Other are expected to be modestly lower compared to second quarter 2001 due to lower yields on investment balances.

On an as reported basis, earnings for second quarter 2002 are expected to be negatively impacted by a special charge estimated to be from $(0.10) to $(0.15) per share. This special item will reflect the remaining restructuring charges, including severance costs, at Entergy Wholesale Operations, partially offset by a gain on the sale of certain assets which were sold as part of EWO’s restructuring efforts.

A special charge of $(1.15) per share was recorded in first quarter 2002, when the EWO restructuring was originally announced. At that time, total restructuring charges were estimated to range from $(1.15) to $(1.35) per share, including amounts expected to be recorded in the second quarter.

Entergy is a major global energy company with power production, distribution operations and related diversified services. Entergy owns, manages, or invests in power plants generating more than 30,000 megawatts of electricity domestically and internationally, and delivers electricity to about 2.6 million customers in portions of Arkansas, Louisiana, Mississippi and Texas. Through Entergy-Koch, L.P., it is also a leading provider of wholesale energy marketing and trading services.

Additional investor information can be accessed online at http://www.entergy.com/earnings

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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