Company officials reiterated it is normal for MAM to experience losses inthe second and third quarters due to seasonality of earnings at the utilityas a result of the rate structures mandated by regulators. However,results for the 2008 second quarter were also negatively affected by alarge increase in expense due to a change in deferred directors'compensation. According to MAM President and CEO Brent M. Boyles, "Thisexpense of $518,000 is a mixed blessing. It is the result of our stockprice moving up 54%, from $27.80 per share at the end of the first quarterto $42.75 per share at the end of the second quarter. We are very happyfor our shareholders that this increase took place; however, it does havethe inverse effect of generating a non-cash expense for the overallincrease in the value of phantom shares owned by our board members."

Regarding industry conditions, the impact of the overall economy and costof energy on the volume of energy consumption are greatly impacting MainePublic Service and other utilities within the region. Overall, theCompany's regulated utility revenues are down $146,000 for the quarter and$160,000 year to date. Despite revenues being off, financial performanceat the utility, in terms of net income, remains positive for the quarter.Operations and maintenance expenses are up $137,000 for the quarter and$97,000 year to date, compared with the prior year. If not for theincrease in deferred directors' compensation, operations and maintenanceexpenses would be significantly lower for the quarter and flat year todate.

MAM's newest business segment, MAM Utility Services Group (MAM USG),remained profitable on its projects for the year to date, earning $164,000of gross margin for the six months ended June 30, 2008. MAM USG incurred aloss of $14,000 for the quarter, due to a revised estimate of project costsand profitability based on performance of the jobs to date and relatedrequests for change orders from the project owners.

Statistical Highlights:

Unaudited(dollars in thousands except per share amounts)                              Three Months Ended       Six Months Ended                                   June 30,                June 30,                               2008        2007        2008        2007                            ----------  ----------  ----------  ----------Regulated Operating Revenues                   $    7,789  $    7,951  $   18,680  $   18,866Unregulated Operating Revenues                        2,078           -       3,374           -                            ----------  ----------  ----------  ----------Total Operating Revenues    $    9,867  $    7,951  $   22,054  $   18,866                            ==========  ==========  ==========  ==========(Loss) Income from Continuing Operations Allocable to Common Shareholders               $      (56) $      186  $    1,919  $    1,746Loss from Discontinued Operations                        (12)       (563)        (21)       (772)                            ----------  ----------  ----------  ----------Total Consolidated Net (Loss) Income              $      (68) $     (377) $    1,898  $      974                            ==========  ==========  ==========  ==========Basic (Loss) Income per Common Share from Continuing Operations      $    (0.03) $     0.11  $     1.14  $     1.05Basic Loss per Common Share from Discontinued Operations                      (0.01)      (0.33)      (0.01)      (0.46)                            ----------  ----------  ----------  ----------Total Basic (Loss) Income per Common Share           $    (0.04) $    (0.22) $     1.13  $     0.59                            ==========  ==========  ==========  ==========Diluted (Loss) Income per Common Share from Continuing Operations      $    (0.03) $     0.11  $     1.14  $     1.04Diluted Loss per Common Share from Discontinued Operations                      (0.01)      (0.33)      (0.01)      (0.46)                            ----------  ----------  ----------  ----------Total Diluted (Loss) Income per Common Share           $    (0.04) $    (0.22) $     1.13  $     0.58                            ==========  ==========  ==========  ==========Average Shares Outstanding   1,678,096   1,677,187   1,677,979   1,662,005                            ----------  ----------  ----------  ----------

About Maine & Maritimes Corporation: Maine & Maritimes Corporation (AMEX: MAM) is the parent company of Maine Public Service Company, a regulatedelectric transmission and distribution utility serving approximately 36,000electricity customer accounts in Northern Maine. MAM is also the parentcompany of MAM Utility Services Group, an unregulated corporation thatprovides electrical services including transmission line and substationdesign and construction. Corporate headquarters are located in PresqueIsle, Maine, and the corporate website is www.maineandmaritimes.com.

Cautionary Statement Regarding Forward-Looking Information

Except for historical information, all other information provided in thisnews release consists of "forward-looking statements" within the meaning ofthe Private Securities Litigation Reform Act of 1995. Although Maine &Maritimes Corporation ("MAM") believes that in making such statements itsexpectations are based on reasonable assumptions, any such statementsinvolve uncertainties and risks that may cause actual results to differmaterially from those projected, anticipated or implied. MAM cautions thatthere are certain factors that can cause actual results to differmaterially from forward-looking information that has been provided,including, without limitation, potential changes in applicable laws andregulations, potential changes in Management, its ability to raisenecessary operating and growth capital, increased interest costs, itsability to execute its business plans in a timely and efficient manner,potential costs and difficulties related to integration of potentialacquired businesses, the loss of customers and other factors that are moredetailed in MAM's filings with the Securities and Exchange Commission.

MAM-E = Earnings Release