Pinnacle West Capital Corporation (NYSE:PNW) today announced a dividend hike of nine percent or ten cents per share annually. The board's action will result in an indicated annual dividend of $1.20 per share (30 cents per quarter). The declared dividends are payable December 1, 1997 to shareholders of record on November 3, 1997.

"Increasing dividends and increasing earnings through operating results are central to our mission of increasing total return to our shareholders," Chairman Richard Snell said.

The company's dividend policy calls for annual increases at a relatively consistent dollar amount at a pace that is well above the industry average.

Pinnacle West is a Phoenix-based holding company with consolidated assets of approximately $7 billion. Its major subsidiary is APS, Arizona's largest electric utility.

This press release contains forward-looking statements that involve risks and uncertainties, which include, but are not limited to, the ongoing restructuring of the electric industry; the outcome of the regulatory proceedings relating to the restructuring; regional economic and market conditions, which could affect customer growth and the cost of power supplies; the cost of debt and equity capital; weather variations affecting customer usage; and the strength of the real estate market. These factors and the other matters discussed above may cause future results to differ materially from historical results, or from results or outcomes currently expected or sought by the Company.