ITC Holdings Corp. Announces Commencement of Equity Offering

Sep 25, 2006

NOVI, Mich., Sept 25, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- ITC Holdings Corp. (NYSE: ITC) today announced that it is commencing a public offering of 6,690,000 shares of its common stock pursuant to a Registration Statement on Form S-1, which is not yet effective, filed with the Securities and Exchange Commission. ITC Holdings' principal stockholder, International Transmission Holdings Limited Partnership (the "selling stockholder"), is also selling 2,867,000 shares of ITC Holdings' common stock in the offering and expects to grant the underwriters a 30-day option to purchase up to an additional 1,433,550 shares of common stock owned by the selling stockholder to cover over-allotments, if any.

ITC Holdings intends to use the net proceeds to it from this offering as part of the consideration for its previously announced acquisition of all of the indirect ownership interests in Michigan Electric Transmission Company, LLC ("METC"). ITC Holdings will not receive any of the proceeds from the sale of common stock by the selling stockholder.

Lehman Brothers Inc. and Credit Suisse Securities (USA) LLC are serving as joint book-running managers for the offering. Morgan Stanley & Co. Incorporated and A.G. Edwards & Sons, Inc. are acting as co-managers. Copies of the preliminary prospectus relating to the offering, when available, may be obtained from Lehman Brothers Inc., c/o ADP Financial Services, 1155 Long Island Avenue, Edgewood, NY 11717, by email at Monica_Castillo@adp.com or by faxing requests to 631.254.7268; and Credit Suisse Securities (USA) LLC, Credit Suisse, Prospectus Department, One Madison Avenue, New York, NY 10010, by calling toll-free 800.221.1037 or 212.538.5441, or by faxing requests to 212.325.8057.

A registration statement relating to the shares of common stock has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the shares of common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About ITC Holdings Corp.

ITC Holdings Corp. is in the business of investing in electricity transmission infrastructure improvements as a means to improve electric reliability, reduce congestion and lower the overall cost of delivered energy. ITCTransmission, an ITC subsidiary, is the first independently owned and operated electricity transmission company in the United States. ITCTransmission owns, operates and maintains a fully-regulated, high-voltage system that transmits electricity to local electric distribution facilities from generating stations in Michigan, other Midwestern states and Ontario, Canada. The local distribution facilities connected to the ITCTransmission system serve an area comprised of 13 southeastern Michigan counties, including the Detroit metropolitan area. Recently announced subsidiary ITC Grid Development, LLC will focus on partnering with local entities and utilities in regions where significant transmission improvements are needed. The first region in which ITC Grid Development, LLC will focus its efforts is the Great Plains region, specifically in Kansas, through the formation of its subsidiary ITC Great Plains, LLC. For more information on ITC Holdings Corp., please visit http://www.itc-holdings.com. For more information on ITCTransmission, please visit http://www.itctransco.com. For more information on ITC Great Plains, please visit http://www.itcgreatplains.com. (itc-ITC)

About METC

METC is an independent transmission company based in Ann Arbor, Michigan. METC is solely responsible for owning and operating the transmission system that transmits electric service to a population of approximately six million people throughout Michigan's Lower Peninsula. More information on METC can be found at http://www.metcllc.com.

SOURCE ITC Holdings Corp.

Media Contact - Lisa Aragon, ITC Holdings, +1-248-835-9300, laragon@itc-holdings.com;

Investor/Analyst Contact - Pat Wenzel, ITC Holdings, +1-248-374-7200,

pwenzel@itc-holdings.com

http://www.prnewswire.com

Copyright (C) 2006 PR Newswire. All rights reserved.

News Provided by COMTEX