The net income for the quarter was $27.0 million, or $0.54 per diluted share, compared to $15.6 million, or $0.36 per diluted share for the fourth quarter of 2007. Net income for the full year was $109.2 million, or $2.19 per diluted share, compared to $73.3 million, or $1.68 per diluted share in 2007.

The net income for the year was higher than earnings guidance of $2.10 to $2.12 mainly due to an increase in rate base assets and an increase in allowance for funds used during construction (AFUDC) as a result of higher than expected capital expenditures in the fourth quarter.

ITC had an excellent quarter and year in spite of the difficult financial markets and a slowing economy, stated Joseph L. Welch, chairman, president and chief executive officer of ITC Holdings. This is a testament to ITC’s predictable and stable business model that is enabling us to achieve our goal of investing in the transmission grid to improve reliability and provide access to dependable, non-discriminatory, competitive and low-cost energy. We enter 2009 with great enthusiasm as we move closer to realizing our vision of the high voltage transmission infrastructure build-out needed to support the nation’s emerging energy policy of facilitating access to renewable energy resources, reducing our dependence on foreign oil and reducing carbon emissions.

In the fourth quarter of 2008, ITC Transmission invested $30.5 million, METC $35.7 million and ITC Midwest $46.1 million in their respective transmission systems. For the twelve month period, ITC Transmission, METC and ITC Midwest’s respective investments were $121.8 million, $121.1 million and $156.5 million.

In 2008 ITC Midwest interconnected 810 MW of renewable wind energy which represents 10% of all wind that was interconnected in 2008. This helped Iowa surpass California as the state with the second greatest amount of wind energy capacity.

When we bought ITC Midwest we knew we were positioning ITC to play a large role in the interconnection of renewable resources into the electric grid, stated Welch. It’s rewarding to see how the independent transmission model has made a positive impact for integrating renewable energy into the grid.

In December of 2008, the company completed private placement financings at two of its subsidiaries, METC and ITC Midwest. METC issued $50.0 million of Senior Secured Notes and ITC Midwest issued $75.0 million of First Mortgage Bonds. These financings will enable METC and ITC Midwest to complete their 2009 capital expenditure plans. The success of these issuances demonstrates that ITC continues to have access to capital even in difficult financial markets.

Net Income for the fourth quarter increased by $11.3 million and for the full year by $35.9 million, compared to 2007. Key drivers that contributed to the results include:

Increased income from ITC Midwest in 2008 as a result of the acquisition of the Interstate Power and Light Company (IPL) transmission assets in December of 2007;

Higher rate base at ITC Transmission and METC;

Higher financing costs at the company to fund the acquisition of the IPL transmission assets and to fund capital expenditures;

Lower earnings per share due to higher weighted average diluted shares outstanding;

Higher development expenses at ITC Great Plains and ITC Grid Development.

Guidance for 2009:

For 2009, earnings per diluted share are expected to be between $2.20 and $2.30. Capital investments for 2009 are expected to be about $70-$85 million, $110-$130 million and $90-$110 million for ITC Transmission, METC and ITC Midwest, respectively.

Fourth Quarter 2008 Financial Results Detail:

The company reported operating revenues of $152.1 million for the fourth quarter 2008, an increase of $42.7 million from 2007. Network revenues increased by $37.9 million due to the December 2007 acquisition by ITC Midwest of the electric transmission assets of IPL. METC and ITC Transmission also recognized total additional network revenues of $1.9 million mainly due to higher net revenue requirement as a result of higher rate base, operating expenses and taxes, among other items. Point-to-point, scheduling, control and dispatch revenues increased due primarily to an additional $1.3 million of ITC Midwest revenues. Regional cost sharing revenues, which became applicable during 2008, were $3.6 million for the fourth quarter of 2008.

Operation & maintenance (O&M) expenses of $26.2 million were $7.3 million higher in the fourth quarter of 2008 compared to the same period in 2007. O&M expenses increased due primarily to expenses incurred by ITC Midwest that were not included in our results of operations for the three months ended December 31, 2007.

General and administrative (G&A) expenses of $21.3 million for the fourth quarter of 2008 were $0.2 million lower than the same period in 2007.

Depreciation and amortization expenses increased by $7.1 million in the fourth quarter of 2008 compared to the fourth quarter of 2007. ITC Midwest recognized additional depreciation expenses of $5.2 million in the quarter. Depreciation and amortization expenses also increased at ITC Transmission and METC due to a higher depreciable asset base resulting from property, plant and equipment additions.

Taxes other than income taxes in the quarter increased compared to 2007 due to property tax expenses at ITC Midwest of $1.4 million in the fourth quarter of 2008. Additionally, property tax expenses at both ITC Transmission and METC increased by $0.8 million due primarily to ITC Transmission and METC’s capital additions, which are included in the assessments for 2008 personal property taxes. Partially offsetting these increases was a decrease of $1.1 million as a result of the replacement of the Michigan Single Business Tax.

For fourth quarter of 2008, interest expense increased by $8.3 million compared to 2007, due primarily to higher borrowing levels to finance our capital expenditures and to finance the ITC Midwest asset acquisition.

Full Year 2008 Financial Results Detail:

Network revenues increased by $133.5 million as a result of the acquisition by ITC Midwest of the IPL electric transmission assets. ITC Transmission and METC also recognized additional network revenues of $18.6 million and $16.5 million, respectively, due to a higher net revenue requirement as a result of higher rate base, operating expenses and taxes, among other items. Point-to-point, scheduling, control and dispatch revenues increased due primarily to the addition of $6.3 million of ITC Midwest revenues. Regional cost sharing revenues, which became applicable during 2008, were $15.5 million for year.

For the twelve months ended December 31, 2008, O&M expenses of $113.8 million were $32.4 million higher than for the same period in 2007. O&M expenses increased by $27.6 million due to amounts incurred by ITC Midwest in 2008 that were not included in results for 2007. Further, METC incurred additional vegetation management expenses of $6.9 million.

G&A expenses of $81.3 million in 2008 were $19.2 million higher than for the same period in 2007. G&A expenses increased $14.0 million due primarily to increased personnel, higher business expenses and professional advisory and consulting services, mainly as a result of the acquisition of IPL transmission assets. Also, G&A expenses increased by $4.2 million at ITC Grid Development and ITC Great Plains subsidiaries for salaries, benefits and general business expenses due to increased development activities during 2008.

Depreciation and amortization expenses increased $26.8 million in 2008 compared to 2007. ITC Midwest recognized depreciation expenses of $18.6 million for the year. Depreciation and amortization expenses also increased at ITC Transmission and METC due primarily to a higher depreciable asset base resulting from property, plant and equipment additions.