Contact: Suzy P. Hollinger (808) 543-7385 Telephone Manager, Treasury and Investor Relations (808) 203-1155 Facsimile E-mail: shollinger@hei.com HEI FOURTH QUARTER 2007 EARNINGS IMPROVE FULL YEAR RESULTS HONOLULU -- Hawaiian Electric Industries, Inc. (NYSE - HE) today reported 2007 net income of $84.8 million, or $1.03 per share, compared with $108.0 million, or $1.33 per share in 2006. Net income for the fourth quarter of 2007 was $40.6 million, or $0.49 per share, compared with $16.1 million, or $0.20 per share for the fourth quarter of 2006. “While 2007 fourth quarter earnings improved, full-year 2007 earnings were down $23 million, driven primarily by a drop in utility net income,” said Constance H. Lau, HEI’s president and chief executive officer. “Interim rate increases approved by the Hawaii Public Utilities Commission (PUC) in 2007, which took effect mainly in the fourth quarter, helped to improve full-year earnings.” UTILITY RESULTS Electric utility net income was $52.2 million in 2007 versus $74.9 million in 2006, down $22.8 million. “Interim rate relief in 2007 partially offset two charges related to rate case filings and higher year-over-year other operation, maintenance and depreciation expenses,” said Lau. One of the charges related to a reserve for an expected $16 million refund ($9 million net of taxes), including interest, to Oahu customers resulting from a proposed final PUC decision and Hawaiian Electric Industries, Inc. News Release February 21, 2008 Page 2 order in Hawaiian Electric Company’s 2005 test year rate case. The other charge resulted from the write-off of $12 million ($7 million net of taxes) of Keahole power plant expansion costs pursuant to a settlement agreement with the State of Hawaii Office of Consumer Advocacy for Hawaii Electric Light Company’s pending rate case. Interim rate increases granted for the company’s three utilities in 2007 resulted in $32 million more revenues in 2007 compared with 2006. Other operation and maintenance expense (O&M) increased by $43.1 million in 2007 due to: 1) $11.9 million higher production maintenance expenses due primarily to higher generating plant maintenance and an increase in the scope and number of generating unit overhauls performed in the year; 2) $6.9 million higher demand-side management (DSM) costs that are recovered in electric rates; 3) $5.5 million of increased year-over-year employee benefits expenses; 4) $3.6 million higher transmission and distribution maintenance expenses resulting from higher substation maintenance and vegetation management; and 5) $15.2 million of higher costs to ensure reliable operations, including increased staffing. Depreciation expense in 2007 increased $6.9 million over 2006 due to 2006 plant additions, including the Ford Island Substation and new Dispatch Center on Oahu, and the Maalaea M-18 generating unit addition on Maui. Kilowatthour sales were basically flat year-over-year. While residential customer usage increased, commercial customer usage was down due largely to energy efficiency projects and customer conservation. Hawaiian Electric Industries, Inc. News Release February 21, 2008 Page 3 BANK RESULTS Bank net income for 2007 was $53.1 million compared with $55.8 million for 2006. “We were pleased that 2007 bank earnings declined only 5% compared to 2006 given the challenging year for financial institutions in general,” said Lau. Bank net interest income decreased by $5.5 million in 2007 compared with 2006. Increased interest income primarily from higher rates and balances on loans was more than offset by increased funding costs and lower investment and mortgage-related securities balances. The bank’s net interest margin decreased to 3.08% compared to 3.18% in 2006. The bank provided $5.7 million for loan losses in 2007, compared to $1.4 million in 2006. “Overall credit quality remained strong in 2007 with most of the provision relating to a single commercial borrower,” said Lau. “As a result of stable housing prices during 2007 and our focus on the prime residential loan market, our residential loan portfolio experienced low levels of delinquencies and no residential loan charge-offs in 2007,” Lau added. Noninterest income increased by $8.8 million in 2007, primarily due to higher fee income on deposits of $7.6 million. Noninterest expense increased by $3.6 million year-over-year, primarily due to higher costs to strengthen the bank’s risk management and compliance infrastructure and higher legal expenses, partially offset by an $8.8 million gain ($5.3 million net of taxes) recorded in the fourth quarter resulting from previously disclosed changes to the bank’s defined benefit plan. Hawaiian Electric Industries, Inc. News Release February 21, 2008 Page 4 HOLDING AND OTHER COMPANIES’ RESULTS The holding and other companies’ net loss was $20.5 million in 2007, compared with $22.7 million in 2006. Gains on the sale of non-strategic assets were partially offset by higher general and administrative and interest expenses in 2007 compared with 2006. FOURTH QUARTER RESULTS Consolidated net income for the fourth quarter of 2007 was $40.6 million, or $0.49 per share, compared with $16.1 million, or $0.20 per share, for the fourth quarter of 2006. “Fourth quarter net income benefited from the receipt of interim rate relief for our three utilities and a gain resulting from changes to the bank’s defined benefit plan,” said Lau. UTILITY RESULTS Electric utility net income for the fourth quarter of 2007 was $28.2 million compared with $13.0 million for the same quarter in 2006. “The positive impact of rate relief for all three utilities and accrual of DSM incentives resulted in an increase in net income despite lower kilowatthour sales and higher O&M and depreciation expenses,” said Lau. Kilowatthour sales were down 1.4% compared with the same quarter of 2006 due in part to lower consumption by commercial customers. Other O&M expenses were $2.0 million higher quarter-over-quarter due primarily to $1.9 million higher DSM costs that are recovered in electric rates, $1.4 million higher employee benefits expenses and $5.7 million in higher costs to ensure reliable operations, including increased staffing, partially offset by $6.8 million lower production maintenance expenses due to the timing of maintenance work and $0.2 million lower transmission and distribution expenses. Hawaiian Electric Industries, Inc. News Release February 21, 2008 Page 5 The utility also recorded $1.7 million in higher quarter-over-quarter depreciation expenses in 2007 due to 2006 plant additions. In the fourth quarter of 2007, the utility recorded $2.2 million of DSM incentives, net of tax, related to successful implementation of energy efficiency DSM programs in 2007. BANK RESULTS Bank net income for the fourth quarter of 2007 was $17.2 million compared with $9.3 million for the fourth quarter of 2006. Bank net interest income for the fourth quarter of 2007 was $49.1 million compared with $47.9 million in the same quarter of 2006. The increase in net interest income was driven by higher balances on loans, partially offset by higher funding costs. The bank’s net interest margin was 3.08% in the fourth quarter of 2007, compared with 3.05% in the fourth quarter of 2006, as the yields on earning assets increased more than the overall cost of the bank’s liabilities. In the fourth quarter of 2007, the bank recorded a $1.8 million provision for loan losses, compared to a $1.4 million provision recorded in the same period of 2006. “While we don’t believe that this is indicative of a trend in the overall credit quality of the bank’s loan portfolio, our delinquent and nonaccrual loans have been at historically low levels. Accordingly, we expect to see an increase in loan loss provisions, especially as the economy begins to slow,” added Lau. Noninterest income in the fourth quarter of 2007 was $3.3 million higher than in the fourth quarter of 2006. Fee income from deposits was higher by $1.7 million and the bank recorded a $1.1 million gain on sale of stock in a membership organization in the fourth quarter of 2007. Hawaiian Electric Industries, Inc. News Release February 21, 2008 Page 6 Noninterest expense in the fourth quarter of 2007 was $8.5 million lower than in the fourth quarter of 2006, primarily due to lower compensation and employee benefits expenses resulting from an $8.8 million gain recorded as a result of changes to the bank’s defined benefit plan. HOLDING AND OTHER COMPANIES’ RESULTS The holding and other companies’ net losses were $4.8 million in the fourth quarter of 2007 versus $6.2 million in the fourth quarter of 2006. The quarter-over-quarter improvement was primarily due to higher investment gains in the fourth quarter of 2007 compared with the fourth quarter of 2006. WEBCAST AND TELECONFERENCE Hawaiian Electric Industries, Inc. will conduct a webcast and teleconference call to review its 2007 earnings on Friday, February 22, 2008, at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time). The event can be accessed through HEI’s website at http://www.hei.com or by dialing (866) 270-6057, passcode: 11751245 for the teleconference call. An online replay of the webcast will be available at the same website beginning about two hours after the event. Replays of the teleconference call will also be available approximately two hours after the event through March 7, 2008, by dialing (888) 286-8010, passcode: 45194385. Representing management will be Constance H. Lau, president and chief executive officer, Hawaiian Electric Industries, Inc., chairman, Hawaiian Electric Company, Inc. and chairman and chief executive officer, American Savings Bank, F.S.B.; T. Michael May, Hawaiian Electric Industries, Inc. News Release February 21, 2008 Page 7 president and chief executive officer, Hawaiian Electric Company, Inc.; and Timothy K. Schools, president, American Savings Bank F.S.B. HEI supplies power to over 400,000 customers or 95% of Hawaii’s population through its electric utilities, Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited and provides a wide array of banking and other financial services to consumers and businesses through American Savings Bank, F.S.B., the state’s third largest financial institution based on year-end asset size. Hawaiian Electric Industries, Inc. News Release February 21, 2008 Page 8 FORWARD-LOOKING STATEMENTS This release may contain “forward-looking statements,” which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as expects, anticipates, intends, plans, believes, predicts, estimates or similar expressions. In addition, any statements concerning future financial performance (including future revenues, expenses, earnings or losses or growth rates), ongoing business strategies or prospects and possible future actions, which may be provided by management, are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and assumptions about HEI and its subsidiaries, the performance of the industries in which they do business and economic and market factors, among other things. These forward-looking statements are not guarantees of future performance. Forward-looking statements in this release should be read in conjunction with the "Forward-Looking Statements" discussion (which is incorporated by reference herein) set forth on page iv of HEI's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007, and in HEI's future periodic reports that discuss important factors that could cause HEI's results to differ materially from those anticipated in such statements. Forward-looking statements speak only as of the date of this release. ### Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three months ended (in thousands, except per share amounts) 20072006 20072006 Revenues Electric utility $ 598,309 $ 506,029 $ 2,106,314 2,054,890 $ Bank 108,002 102,467 425,495 408,365 Other 1,860 (1,417) 4,609 (2,351) 708,171 607,079 2,536,418 2,460,904 Expenses Electric utility 540,871 473,388 1,975,729 1,888,172 Bank 80,661 87,661 341,485 319,807 Other 4,774 2,870 15,472 13,529 626,306 563,919 2,332,686 2,221,508 Operating income (loss) Electric utility 57,438 32,641 130,585 166,718 Bank 27,341 14,806 84,010 88,558 Other (2,914) (4,287) (10,863) (15,880) 81,865 43,160 203,732 239,396 Interest expense–other than on deposit liabilities and other bank borrowings (19,174) (19,152) (78,556) (75,678) Allowance for borrowed funds used during construction 712 620 2,552 2,879 Preferred stock dividends of subsidiaries (470) (473) (1,890) (1,890) Allowance for equity funds used during construction 1,449 1,374 5,219 6,348 Income from continuing operations before income taxes 64,382 25,529 131,057 171,055 Income taxes 23,797 9,412 46,278 63,054 Net income $ 40,585 16,117 $ $ 84,779 108,001 $ Per common share Basic earnings $ 0.49 $ 0.20 $ 1.03 $ 1.33 Diluted earnings $ 0.49 $ 0.20 $ 1.03 $ 1.33 Dividends $ 0.31 $ 0.31 $ 1.24 $ 1.24 Weighted-average number of common shares outstanding 83,003 81,282 82,215 81,145 Adjusted weighted-average shares 83,163 81,587 82,419 81,373 Income (loss) from continuing operations by segment Electric utility 28,178 $ 13,007 $ 52,156 $ 74,947 $ Bank 17,1989,26753,10755,782 Other (4,791)(6,157)(20,484)(22,728) Net income 40,585 $ 16,117 $ 84,779 $ 108,001 $ This information should be read in conjunction with the consolidated financial statements and the notes thereto for the years ended December 31, 2007 and 2006 (included in HEI Exhibit 13 to HEI’s Form 8-K dated February 21, 2008) and the consolidated financial statements and the notes thereto in HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007. Years ended December 31, December 31, 9 Hawaiian Electric Company, Inc. (HECO) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three months ended (in thousands) 2007200620072006 Operating revenues $ 597,192 504,855 $ 2,096,958 $ 2,050,412 $ Operating expenses Fuel oil 224,348 186,800 774,119 781,740 Purchased power 146,799 127,977 536,960 506,893 Other operation 59,098 49,884 214,047 186,449 Maintenance 19,944 27,130 105,743 90,217 Depreciation 34,269 32,550 137,081 130,164 Taxes, other than income taxes 55,768 47,687 194,607 190,413 Income taxes 18,152 8,472 34,126 47,381 558,378 480,500 1,996,683 1,933,257 Operating income 38,814 24,355 100,275 117,155 Other income Allowance for equity funds used during construction 1,449 1,374 5,219 6,348 Other, net 703 314 (627) 3,123 2,152 1,688 4,592 9,471 Income before interest and other charges 40,966 26,043 104,867 126,626 Interest and other charges Interest on long-term debt 11,600 10,778 45,964 43,109 Amortization of net bond premium and expense 627 547 2,440 2,198 Other interest charges 774 1,832 4,864 7,256 Allowance for borrowed funds used during construction (712) (620) (2,552) (2,879) Preferred stock dividends of subsidiaries 229 229 915 915 12,518 12,766 51,631 50,599 Income before preferred stock dividends of HECO 28,448 13,277 53,236 76,027 Preferred stock dividends of HECO 270 270 1,080 1,080 Net income for common stock $ 28,178 13,007 $ 52,156 $ 74,947 $ OTHER ELECTRIC UTILITY INFORMATION Kilowatthour sales (millions) 2,550 2,588 10,118 10,116 Cooling degree days (Oahu) 1,169 1,198 4,835 4,520 Average fuel cost per barrel 79.67 $ 65.23 $ 69.08 $ 68.13 $ This information should be read in conjunction with the consolidated financial statements and the notes thereto for the years ended December 31, 2007 and 2006 (included in HECO Exhibit 99.1 to HECO’s Form 8-K dated February 21, 2008) and the consolidated financial statements and the notes thereto in HECO's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007. Years ended December 31, December 31, 10 American Savings Bank, F.S.B. and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three months ended (in thousands) 2007 2006 2007 2006 Interest and dividend income Interest and fees on loans $ 6 3,402 $ 5 9,717 $ 2 45,593 $ 2 31,610 Interest and dividends on investment and mortgage-related securities 2 6,380 2 7,845 1 11,470 1 17,160 8 9,782 87,562 357,063 348,770 Interest expense Interest on deposit liabilities 1 9,928 2 1,519 8 1,879 7 3,614 Interest on other borrowings 2 0,789 1 8,121 7 8,019 7 2,482 4 0,717 39,640 159,898 146,096 Net interest income 4 9,065 47,922 197,165 202,674 Provision for loan losses 1 ,800 1 ,400 5 ,700 1 ,400 Net interest income after provision for loan losses 4 7,265 46,522 191,465 201,274 Noninterest income Fees from other financial services 7 ,377 6 ,655 2 7,916 2 6,385 Fee income on deposit liabilities 7 ,247 5 ,561 2 6,342 1 8,779 Fee income on other financial products 1 ,573 1 ,717 7 ,418 8 ,025 Gain on sale of securities 1 ,109 - 1 ,109 1 ,735 Other income 9 14 9 72 5 ,647 4 ,671 1 8,220 14,905 68,432 59,595 Noninterest expense Compensation and employee benefits 9 ,204 1 5,767 6 1,937 6 8,478 Occupancy 5 ,344 4 ,934 2 1,051 1 8,829 Equipment 3 ,524 3 ,800 1 4,417 1 4,700 Services 6 ,535 8 ,043 29,173 21,484 Data processing 2 ,659 2 ,623 1 0,458 1 0,164 Other expense 1 0,900 1 1,454 38,872 38,656 3 8,166 46,621 175,908 172,311 Income before income taxes 2 7,319 14,806 83,989 88,558 Income taxes 1 0,121 5 ,539 3 0,882 3 2,776 Net income $ 1 7,198 9,267 $ 53,107 $ 55,782 $ Net interest margin (%) 3.083.053.083.18 This information should be read in conjunction with the consolidated financial statements and the notes thereto for the years ended December 31, 2007 and 2006 (included in HEI Exhibit 13 to HEI’s Form 8-K dated February 21, 2008) and the consolidated financial statements and the notes thereto in HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007. Years ended December 31, December 31, 11