Company & Industry News

CONTACT: Steve Kraus
133 S. Blair St.
Madison, WI 53701-1231
(608) 252-7907

MADISON, WISCONSIN, February 18, 2005—The board of directors of MGE Energy, Inc. (Nasdaq: MGEE) today declared the regular quarterly dividend of 34.167 cents per share on the outstanding shares of the company’s common stock, payable March 15, 2005, to shareholders of record at the close of business March 1, 2005.

MGE Energy has increased dividends annually for the past 29 years and has paid cash dividends each year since 1909.

MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric (MGE), generates and distributes electricity to nearly 134,000 customers in Dane County and purchases and distributes natural gas to nearly 133,000 customers in seven south-central and western Wisconsin counties. MGE has served the Madison area since 1896.