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���������ֳ�-Chicago-October 10, 2002: ���������ֳ� has assigned a rating of 'A+' to Otter Tail Corp.'s (OTTR) $25 million issuance of 6.80% senior unsecured notes due 2032. Proceeds from this issuance, along with $40 million of 5.625% insured senior unsecured notes due 2017, will be used to retire first mortgage bonds and for utility construction expenditures relating to a new gas-fired combustion turbine expected to come on line in June 2003. The Rating Outlook for OTTR is Stable.

OTTR's credit profile continues to be supported by the solid credit quality of its regulated utility division, Otter Tail Power (OTP). OTP is a low-cost provider operating in stable regulatory environments that have no immediate plans to open the market to competition. OTP further benefits from a stable customer base, competitive rates, stable credit fundamentals and a lack of exposure to stranded costs and nuclear assets. ���������ֳ�'s rating analysis of OTTR also takes into consideration the relatively higher business risk and cash flow volatility associated with the company's growing portfolio of unregulated businesses, housed in Varistar Corp.. OTTR is targeting to derive 50% operating income from its unregulated investments over the next few years through a mix of internal growth and acquisitions. OTTR has historically funded the diversified business growth through a balanced combination of equity issuances by OTTR and non-recourse debt. Any significant deviation from this strategy could pressurize OTTR's ratings.

OTTR is headquartered in Fergus Falls, Minnesota and Fargo, North Dakota. OTTR has interests in the electric-utility, manufacturing, plastics, health-services, construction, telecommunications, transportation , energy services and entertainment industries.

Contact: Karen Anderson 1-312-368-3165, Chicago or Hugh Welton 1-212-908-0746, New York.

Media Relations: James Jockle 1-212-908-0547, New York.