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Hydro One Announces 2000 Year-end Financial Results

TORONTO, March 13, 2001 - Hydro One Inc. today released its financial results for the year 2000. Net income for 2000 was $378 million, an increase of $25 million from 1999 (excluding the one-time gain on the sale of Hydro One's investment in Ontario Quinta A.V.V. in 1999).

The increase in net income was the result of a number of factors including cost savings and efficiencies associated with a large-scale voluntary retirement program completed in May 2000. Hydro One's work force was reduced by 1,400 employees or about 25 per cent of the total regular work force.

"It was a year of many accomplishments for Hydro One employees," said Eleanor Clitheroe, President and CEO of Hydro One.

"Our staff reduction program helped offset other cost pressures. We completed the second largest corporate debt offering ever in Canada, raising $1 billion in an issue that was substantially over subscribed," said Clitheroe. "We negotiated the acquisition of 88 municipal electric utilities, which will add about 240,000 customers to our distribution network. And we made substantial progress in developing Hydro One's family of companies which are offering a range of new services to business and retail customers."

Revenues totaled $2,995 million versus $3,125 million in 1999. A key reason for the reduction was the 1999 disposition of Ontario Quinta A.V.V., which held interests in foreign operations. Net cash provided from operations was $713 million in 2000 compared with $851 million in 1999 as working capital increased during the year.

Hydro One Inc., through its subsidiaries, is principally engaged in electricity transmission, distribution and energy services businesses. Through a wholly owned subsidiary, Hydro One Networks Inc., it owns and operates the largest transmission and distribution system in Ontario and one of the 10 largest in North America.

For further information, please contact:

Hydro One Media Relations
1 (877) 506-7584 (toll-free in Ontario only) or
(416) 345-6868

Ian Chadsey
Director, Investor Relations
Hydro One
(416) 345-6136