PHOENIX- Pinnacle West Capital Corporation’s (NYSE: PNW) board of directors today declared a quarterly dividend of 40 cents per share of common stock, payable on September 1, 2002, to shareholders of record on August 1, 2002.

Pinnacle West’s board in October 2001 increased the dividend by approximately 6.7 percent or ten cents per share on an annual basis. The board’s action resulted in an indicated annual dividend of $1.60 per share or 40 cents per share quarterly and represented the eighth consecutive annual increase.

For the five-year period 1997-2001, Pinnacle West grew its dividend at an average annual rate of 7.8 percent, ranking second among U.S. electric utilities.

Earnings Release, Webcast and Conference Call

Pinnacle West plans to release its 2002 second quarter earnings on Tuesday, July 23, 2002. That same day, the Company invites interested parties to listen to the live webcast of management’s conference call to discuss the second quarter earnings at noon (ET). The call will be available online live at www.pinnaclewest.com/investor/presentations and will be available for replay on the website for 30 days. To access the live conference call by telephone, dial (212) 346-6430 and enter reservation number 20728853. A replay of the call will also be available until Tuesday, August 6, 2002, by calling (800) 633-8284 and entering reservation number 20728853.

Pinnacle West is a Phoenix-based company with consolidated assets of approximately $8 billion. Through its subsidiaries, the company generates, sells and delivers electricity and sells electricity and energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial, and industrial real estate projects.

Contacts

Media:
Paul Reynolds, (602) 250-5656
Alan Bunnell, (602) 250-3376

Analyst:
Rebecca Hickman, (602) 250-5668
Lisa Malagon, (602) 250-5671