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Avista Corp. Board Declares Common and Preferred Dividends

Spokane, Wash., August 11// -- SPOKANE, Wash. – Aug. 11, 2005, 5:30 a.m. PDT:

Avista Corp.'s (NYSE: AVA) board of directors has declared a quarterly dividend of $0.135 per share on the company's common stock. A quarterly dividend of $1.73750 per share was declared on all outstanding shares of preferred stock Series K. The common and preferred stock dividends are payable Sept. 15, 2005, to shareholders of record at the close of business on Aug. 25, 2005.

Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is a company operating division that provides service to 330,000 electric and 285,000 natural gas customers in three western states. Avista's non-regulated subsidiaries include Avista Advantage and Avista Energy. Avista Corp.'s stock is traded under the ticker symbol "AVA." For more information about Avista, please visit www.avistacorp.com.

Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.

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CONTACTS:

Hugh Imhof

509-495-4264

hugh.imhof@avistacorp.com

Jason Lang

509-495-2930

Jason.lang@avistacorp.com

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