MCN Energy Sells Coal Fines Plants

Apr 03, 2001, 01:00 ET from MCN Energy Group Inc.

    DETROIT, April 3 /PRNewswire/ -- MCN Energy Group Inc. (NYSE:   MCN) today
 announced it has completed the previously announced sale of its 95 percent
 membership interests in four coal fines plants to a unit of DTE Energy Company
 (NYSE:   DTE).  In addition, MCN sold its interests in its remaining two plants
 to the DTE subsidiary.
     The original sale price of the first four facilities was subject to
 adjustment up to $152 million or down to zero based on performance measures.
 The final price set for these facilities was $100 million.  The sale price for
 the additional two plants was $32 million.  The transaction was independent of
 MCN's pending merger with DTE Energy.
     MCN built the plants to process fine particles of coal into briquettes
 that can be sold into traditional coal markets.  Concerns regarding the
 plants' qualification for synthetic fuel tax credits led MCN to record in 1998
 a $133.8 million pre-tax write-off of the coal fines project.  Due to the
 completed sale to DTE Energy Services, MCN will record a pre-tax first-quarter
 gain of approximately $125 million.
     MCN Energy Group Inc. is an integrated energy company with approximately
 $5 billion of assets and $2.5 billion of annual revenues.  The company
 primarily is involved in natural gas production, gathering, processing,
 transmission, storage, distribution and marketing in the Midwest-to-Northeast
 corridor.  Its largest subsidiary is Michigan Consolidated Gas Company, a
 natural gas utility serving 1.2 million customers in more than 500 communities
 throughout Michigan.
     DTE Energy is a Detroit-based diversified energy company involved in the
 development and management of energy-related businesses and services
 nationwide.  DTE Energy's principal operating subsidiary is Detroit Edison, an
 electric utility serving 2.1 million customers in Southeastern Michigan.
     DTE Energy has filed with the SEC a post-effective amendment to its
 registration statement on Form S-4.  The post-effective amendment contains a
 proxy statement/prospectus and other documents related to the proposed merger
 between DTE Energy and MCN.  Investors and security holders are urged to read
 the post-effective amendment containing the proxy statement/prospectus and any
 other relevant documents filed with the SEC when they become available because
 they will contain important information.  Investors and security holders are
 able to receive the post-effective amendment containing the proxy
 statement/prospectus and other documents free of charge at the SEC's web site,
 www.sec.gov , and will be able to receive the final proxy statement/prospectus
 and other documents free of charge at the SEC's website, listed above, from
 DTE Energy Investor Relations at 2000 Second Ave., Detroit, Mich. 48226-1279
 or from MCN Investor Relations at 500 Griswold St., Detroit, Mich. 48226.
 Information concerning the identity of the participants in the solicitation of
 proxies by the MCN board of directors and their direct or indirect interests,
 by security holdings or otherwise, may be obtained from the Secretary of MCN
 at the address listed above.
     This release contains forward-looking statements within the meaning of the
 Private Securities Litigation Reform Act of 1995.  These statements are based
 upon the company's current estimates.  Actual results may differ materially.
 
 

SOURCE MCN Energy Group Inc.
    DETROIT, April 3 /PRNewswire/ -- MCN Energy Group Inc. (NYSE:   MCN) today
 announced it has completed the previously announced sale of its 95 percent
 membership interests in four coal fines plants to a unit of DTE Energy Company
 (NYSE:   DTE).  In addition, MCN sold its interests in its remaining two plants
 to the DTE subsidiary.
     The original sale price of the first four facilities was subject to
 adjustment up to $152 million or down to zero based on performance measures.
 The final price set for these facilities was $100 million.  The sale price for
 the additional two plants was $32 million.  The transaction was independent of
 MCN's pending merger with DTE Energy.
     MCN built the plants to process fine particles of coal into briquettes
 that can be sold into traditional coal markets.  Concerns regarding the
 plants' qualification for synthetic fuel tax credits led MCN to record in 1998
 a $133.8 million pre-tax write-off of the coal fines project.  Due to the
 completed sale to DTE Energy Services, MCN will record a pre-tax first-quarter
 gain of approximately $125 million.
     MCN Energy Group Inc. is an integrated energy company with approximately
 $5 billion of assets and $2.5 billion of annual revenues.  The company
 primarily is involved in natural gas production, gathering, processing,
 transmission, storage, distribution and marketing in the Midwest-to-Northeast
 corridor.  Its largest subsidiary is Michigan Consolidated Gas Company, a
 natural gas utility serving 1.2 million customers in more than 500 communities
 throughout Michigan.
     DTE Energy is a Detroit-based diversified energy company involved in the
 development and management of energy-related businesses and services
 nationwide.  DTE Energy's principal operating subsidiary is Detroit Edison, an
 electric utility serving 2.1 million customers in Southeastern Michigan.
     DTE Energy has filed with the SEC a post-effective amendment to its
 registration statement on Form S-4.  The post-effective amendment contains a
 proxy statement/prospectus and other documents related to the proposed merger
 between DTE Energy and MCN.  Investors and security holders are urged to read
 the post-effective amendment containing the proxy statement/prospectus and any
 other relevant documents filed with the SEC when they become available because
 they will contain important information.  Investors and security holders are
 able to receive the post-effective amendment containing the proxy
 statement/prospectus and other documents free of charge at the SEC's web site,
 www.sec.gov , and will be able to receive the final proxy statement/prospectus
 and other documents free of charge at the SEC's website, listed above, from
 DTE Energy Investor Relations at 2000 Second Ave., Detroit, Mich. 48226-1279
 or from MCN Investor Relations at 500 Griswold St., Detroit, Mich. 48226.
 Information concerning the identity of the participants in the solicitation of
 proxies by the MCN board of directors and their direct or indirect interests,
 by security holdings or otherwise, may be obtained from the Secretary of MCN
 at the address listed above.
     This release contains forward-looking statements within the meaning of the
 Private Securities Litigation Reform Act of 1995.  These statements are based
 upon the company's current estimates.  Actual results may differ materially.
 
 SOURCE  MCN Energy Group Inc.