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Emera Completes Sale of Sable Infrastructure to Pengrowth

HALIFAX, Nova Scotia, December 31, 2003 (TSX:EMA): Emera Inc. (TSX:EMA) has completed the sale of its 8.4% interest in the Sable Offshore Energy Project (SOEP) offshore platforms and associated sub-sea field gathering lines to Pengrowth Corporation for $65 million, Emera's approximate book value. $20.0 million was paid on closing, with the balance to be paid in year-end annual instalments of $10.0 million, $15.0 million and $20.0 million through 2006.

Prior to this transaction, Emera also held title to 8.4% of SOEP's natural gas and natural gas liquids reserves, with Pengrowth owning the beneficial interest through a net royalty agreement. That agreement has come to an end, giving Pengrowth direct ownership in the reserves.

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 107,000 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 incorporates Emera's 12.5% interest in the Maritimes & Northeast Pipeline, which delivers Sable natural gas to markets in Maritime Canada and the northeastern United States; and Emera Energy Services, Emera Fuels, and Emera's business development activities.