MidAmerican Sells Oil and Gas Subsidiaries

DES MOINES, Iowa, Jan. 3 /PRNewswire/ -- MidAmerican Energy Holdings Company today announced it has completed the sale of its subsidiaries, InterCoast Oil and Gas Company, GED Energy Services Inc. and InterCoast Gas Services Company, to KCS Energy Inc. of Edison, N.J.

As previously agreed, MidAmerican received approximately $210 million in cash and 435,000 warrants to purchase KCS common stock. The warrants have a four-year term and an exercise price of $45 per share. MidAmerican and KCS Energy announced a definitive agreement on Nov. 15, 1996.

InterCoast Oil and Gas, formerly Medallion Production Company, is involved in natural gas and oil exploration, production and marketing. GED Energy Services and InterCoast Gas Services are natural gas marketing firms. KCS Energy is involved in oil and gas exploration, production and marketing.

MidAmerican Energy Holdings Company is a utility holding company headquartered in Des Moines, Iowa. The company has three subsidiaries: MidAmerican Energy Company (NYSE: MEC), Iowa's largest utility; MidAmerican Capital Company; and Midwest Capital Group. Information on MidAmerican is available on the Internet at http://www.midamerican.com

SOURCE MidAmerican Energy Company

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/CONTACT: John McCarroll of MidAmerican Energy, 515-281-2785/

(MEC)

CO: MidAmerican Energy Company; InterCoast Oil and Gas Company;

GED Energy Services Inc.; InterCoast Gas Services Company;

KCS Energy Inc.; MidAmerican Energy Holdings Company;

MidAmerican Capital Company; Midwest Capital Group ST: Iowa, New Jersey IN: OIL UTI SU:

CC-KS -- MNF004 -- 8332 01/03/97 11:23 EST http://www.prnewswire.com