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Emera Sells Interest In Sable Infrastructure To Pengrowth

HALIFAX, Nova Scotia, October 31, 2003 (TSX:EMA): Emera Inc. (TSX:EMA) has sold 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. Payment terms provide for $20.0 million on closing, with the balance to be paid in year-end annual installments of $10.0 million, $15.0 million and $20.0 million through 2006. The effective date of the transaction is July 1, 2003, and the deal is expected to close on or about December 15, 2003, subject to approval under The Competition Act.

"Our Sable investment put us at the table with the industry leaders in the important early days of Nova Scotia's offshore development," said David Mann, President and CEO of Emera Inc. "Our company remains optimistic about natural gas, but going forward, we are focusing our business interest on infrastructure opportunities further along the midstream value chain."

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 will come to an end at closing, giving Pengrowth direct ownership in the reserves.

"The consolidation makes obvious sense for Pengrowth at this point," said Mr. Mann. Earlier this year, Pengrowth purchased an 8.4% interest in all other SOEP assets from the project partners, including the Goldboro Gas Plant, the Point Tupper Fractionation Facility, and related pipelines.

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.