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Emera Reports Q2 2002 Earnings Of $15.7 Million

HALIFAX, Nova Scotia, August 1, 2002, (TSX:EMA): Emera Inc.'s consolidated earnings were $15.7 million in the second quarter of 2002, compared to $15.6 million for the same period in 2001. The recent acquisition of Bangor Hydro-Electric added $2.7 million to consolidated earnings in the second quarter. This was offset by increased business development activity in Emera Energy and higher interest costs associated with financing the Bangor Hydro and Sable Project investments.

Emera Inc.'s earnings per share were $0.16 for the period, compared to $0.15 for the second quarter of 2001.
For the six months ended June 30, 2002, Emera's earnings were $49.3 million, down $9.9 million from $59.2 million in 2001.

At Nova Scotia Power (NSPI), Emera's largest subsidiary, net earnings were $16.2 million in Q2 2002, compared to $15.1 million in Q2 2001. Interest costs declined by $1.2 million year-over-year. Electric revenues were higher in the quarter, reaching $204.2 million, compared to $196.6 million in Q2 2001, reflecting modest growth in commercial and residential demand and increased export sales. These gains were substantially offset by higher fuel expenses, which were $75.0 million in Q2 2002, compared to $69.9 million a year ago, and increased depreciation.

"Nova Scotia Power is taking aggressive steps to limit the financial impact of higher fuel costs while we wait for a decision on our 2002 rate application," said David Mann, President and Chief Executive Officer of Emera Inc. NSPI has increased hydro production, used more petroleum coke in the fuel mix and implemented short-term cost saving measures.

"These actions help us manage in the short-term, but can't take the place of rate adjustments going forward," noted Mr. Mann. "This is especially true in light of the $49 million increase in our tax expense in 2003."
The company's total revenues increased $78.1 million in Q2 2002, to $295.7 million, up from $217.6 million in the second quarter of 2001, driven by $59.5 million in revenues from Bangor Hydro.

Consolidated operating cash flow was $52.7 million in Q2 2002 compared to $44.3 million in Q1 2002. Bangor Hydro added $8.0 million in cash flow during the quarter.

Corporate Developments

Hearings on NSPI's 2002 rate application concluded in June. A decision is expected in the third quarter. The 2002 application requested an average 8.9% increase in electricity rates. In July 2002, NSPI filed a Notice of Application for a fall rate hearing to address the increase in its tax expenses in 2003.

About Emera Inc.

Emera Inc. (EMA-TSX) is a diversified energy and services company, with 550,000 customers and $4.0 billion in assets. The company has two wholly-owned regulated electric utility subsidiaries, Nova Scotia Power Inc. and Bangor Hydro-Electric Company. Nova Scotia Power supplies over 95% of the electric generation, transmission and distribution in Nova Scotia. Bangor Hydro provides electricity transmission and distribution service to 110,000 customers in eastern Maine. It is a member of the New England Power Pool, and is interconnected with the other New England utilities to the south and with New Brunswick Power to the north. In addition, Emera Energy manages Emera's growing gas infrastructure investment portfolio, including its 12.5% interest in the Maritimes & Northeast Pipeline, which delivers Sable natural gas to markets in Maritime Canada and the northeastern United States; and an 8.4% interest in the Sable Offshore Energy Project offshore platforms and sub-sea field gathering lines. Emera Energy also incorporates Emera Energy Services , Emera Fuels, and Emera's business development activities. Visit Emera on the web at www.Emera.com

Conference Call

Emera is holding a teleconference today at 4:00 p.m. Atlantic (3:00 p.m. Toronto/Montreal/New York; 2:00 p.m. Winnipeg; noon Vancouver) to discuss Q2 2002 financial results. Analysts and other interested parties wanting to participate in the call should dial 1-888-881-4892 (In Toronto at 416-640-4127) at least 10 minutes prior to the start of the call. No pass code is required. A replay of the teleconference will be available one hour after the call ends, until midnight Sunday, August 4, 2002 by dialling 877-289-8525 (In Toronto 416-640-1917) and entering the pass code #199701. The teleconference will also be Webcast live on the internet at www.Q1234.com. The internet broadcast will be archived and available for replay.

Forward Looking Information

This news release contains forward looking information. Actual future results may differ materially. Additional financial and operational information is filed electronically with various securities commissions in Canada through the System for Electronic Document Analysis and Retrieval (SEDAR).