Newsletter - April 1999 Page 1

Quarterly shareholder dividends in 1999 have increased by 14 percent over 1998 quarterly dividends. This year's first quarter dividend of $5.50 per share was declared by the CIRI Board of Directors and paid on March 31, up from the 1998 first quarter dividend of $4.81 per share.

"CIRI has seen a sizable increase in dividends over the past three years," said Carl Marrs, CIRI President & Chief Executive Officer. "We recognize how important dividend distributions are to our shareholders. As the company's performance continues to increase, we are able to increase dividends as well."

To date, the corporation has paid a total of $211 million in shareholder dividends, or $33,637 per shareholder owning 100 shares.

In addition, the annual section 7(j) resource revenue distribution of $127.85 for 100 shares was distributed to at-large shareholders on April 7.

Resource revenues for village shareholders are paid to their respective village corporation.

CIRI shareholders have periodically recommended various modifications be made to the election process. Based on these comments as well as feedback from the Shareholder Participation Committees, the Board of Directors has made some changes to this year's process.

"Shareholders have told us that they would like to see the election process scaled back somewhat, and would like us to identify and discontinue unnecessary elements as a way to help reduce costs associated with the proxy campaign," said CIRI Chairman Bill Prosser.

This year CIRI plans to send only two proxy mailings to shareholders. The first proxy mailing will include the annual report, proxy statement, proxy form, and related materials. The contents of the proxy packet are described in a related article on page 3.

A second proxy card will be mailed closer to the annual meeting, and will serve as a reminder to shareholders who have not yet returned a proxy.

The board decided not to produce a candidate video which has been distributed for the past two years. In addition, proxy workers will not be hired to make

phone calls reminding shareholders to send in their proxies, and door-to-door visits will be eliminated in the Anchorage area. Instead, board members will be available in the CIRI office during scheduled times to take shareholder phone calls. A card is also included in the first proxy mailing for shareholders to request a call from a particular board member.

"With these changes, we hope that shareholders will take it upon themselves to voice their vote in the election of board members by returning their proxies," said Prosser.

The changes to the election process actually began in 1996 when the CIRI board revised the nominating process in response to recommendations from the Shareholder Participation Committees and comments made by other shareholders.

That process was followed again this year. The Nominating Committee consisted of the three Shareholder Participation Committee chairpersons and three board members who were not up for re-election this year. Out of the 48 shareholders who submitted candidate packets, the Nominating