UPDATE: ITC Holdings Ends Proposed Transaction

ITC Holdings Corp.

today announced that it and Entergy Corporation

have agreed to end their proposed transaction that would spin off and merge Entergy's electric transmission business into a subsidiary of ITC.  The companies today will make appropriate filings to terminate regulatory proceedings on outstanding joint applications. "In light of the decision reached by the Mississippi Public Service Commission on December 10, the parties have elected to end their pursuit of the transaction," said Joseph L. Welch, chairman, president and chief executive officer of ITC. "Since our announcement of this transaction, we have been diligent in our pursuit of the necessary regulatory approvals that would allow us to bring the benefits of our independent transmission model, singular focus and superior performance as a transmission operator to the Entergy region to deliver value and improved service to customers.  I am truly sorry that customers in this region will not realize the benefits that this transaction would have brought and that they so deserve. We appreciate the support we received from the Federal Energy Regulatory Commission and various stakeholders in the Entergy region who recognized and understood the benefits of the proposed transaction and the value