Company Urges Elimination of Double Taxation for Dividends

[1] MDU Resources Group, Inc. is an energy and natural resources provider of products and services that are essential to our country's energy, transportation and communication facilities. As a publicly held company listed on the New York exchange (MDU) we have paid dividends to our stockholders for 65 years.

[2] Based on a survey taken in 2000, a majority of MDU stockholders are at least 55 years old, have an annual household income of less than $75,000 and have owned their stock for 10 years or more. The survey determined that MDU stock is considered a secure retirement investment.

[3] I understand you are proposing to eliminate the double taxation of dividends as a component of an economic/tax package. MDU Resources Group strongly supports this proposal and, on behalf of our 14,000 stockholders, we will work towards securing its passage.

[4] The current policy of taxing dividends twice is not only detrimental to a company's capital formation efforts, it is an unfair tax on the millions of taxpayers who have invested in dividend-paying companies as a part or all of their retirement plans.

[5] I strongly encourage you to repeal the double taxation of dividends by allowing investors to exclude dividends from their income.

[6] Thank you for your leadership and interest in this issue