##### 



DTE ENERGY reports third quarter earnings;  revises 2005 earnings guidance based on timing related items
    .




---



##### 



Electric Utility Shows Strong Year-Over-Year Improvement
  Gas Utility Narrows Seasonal Loss
   Underlying Non-Utility Results Remain Strong
 
    
    Power and Industrial Projectshad operating earnings of $0.27 per diluted share versus
$0.28 per diluted share in third quarter 2004. Performance for the quarter was negatively
affected by $0.21 per diluted share due to accounting deferrals of a portion of the gains
received from the sale of interests in the companys synfuel facilities, given current oil
prices. Assuming no oil price-related phase out, the company expects to receive the full
value of the Section 29 tax credits and realize $0.62 per diluted share of deferred revenue
related to this business in the fourth quarter.As a means to partially mitigate the risk of tax credit devaluation and protect synfuel
cash flow, the company entered into oil price derivatives, which are marked to market until
the contracts settle later in 2005. The mark-to-market impact of these contracts produced a
gain of $0.05 per share in the quarter.




---



##### 



-3- In the absence of synfuel revenue deferral and mark-to-market oil price derivative
gains, which are both expected to reverse in the fourth quarter, the operating earnings of
the Power and Industrial Projects group would have been $0.43 per diluted share, versus
$0.28 in the third quarter 2004. This base operational improvement was driven by higher
synfuel production  5.6 tons in the third quarter 2005 versus 4.4 tons in the third quarter
2004.
    
    Unconventional Gas Productionoperating earnings were $0.01 per diluted share in the
third quarter 2005, consistent with the $0.01 per diluted share in the third quarter 2004.
    
    Fuel Transportation and Marketinghad an operating loss of $0.73 per diluted share
versus an operating gain of $0.11 in the same period in 2004. This decline was driven by
timing-related accounting adjustments in certain gas and power contracts.
  Corporate & Other
 Corporate & Other
 2005 Operating Earnings Guidance impacted by mark-to-market losses;  Continued improvement expected in 2006




---



##### 



-4- Discontinued operations at DTE Energy Technologies
  Conference call and webcast




---



##### 



-5-    Lorie N. Kessler
    
    Scott Simons(313) 235-8807
    
    (313) 235-8808




---



##### 



DTE Energy Company  Consolidated Statement of Operations (unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30
    
    
    September 30(in Millions, Except per Share Amounts)
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Operating Revenues
    
    $
    2,060
    
    
    $
    1,586
    
    
    $
    6,310
    
    
    $
    5,158Operating ExpensesFuel, purchased power and gas
    
    
    839
    
    
    
    316
    
    
    
    2,446
    
    
    
    1,434Operation and maintenance
    
    
    973
    
    
    
    872
    
    
    
    2,794
    
    
    
    2,469Depreciation, depletion and amortization
    
    
    239
    
    
    
    190
    
    
    
    662
    
    
    
    535Taxes other than income
    
    
    66
    
    
    
    86
    
    
    
    246
    
    
    
    231Gains on sale of assets, net (1)
    
    
    (108
    )
    
    
    (55
    )
    
    
    (203
    )
    
    
    (166
    )2,009
    
    
    
    1,409
    
    
    
    5,945
    
    
    
    4,503Operating Income
    
    
    51
    
    
    
    177
    
    
    
    365
    
    
    
    655Other (Income) and DeductionsInterest expense
    
    
    129
    
    
    
    131
    
    
    
    385
    
    
    
    390Interest income
    
    
    (15
    )
    
    
    (14
    )
    
    
    (42
    )
    
    
    (41
    )Other income
    
    
    (22
    )
    
    
    (18
    )
    
    
    (45
    )
    
    
    (62
    )Other expenses
    
    
    8
    
    
    
    10
    
    
    
    34
    
    
    
    39100
    
    
    
    109
    
    
    
    332
    
    
    
    326Income (Loss) Before Income Taxes and
Minority Interest
    
    
    (49
    )
    
    
    68
    
    
    
    33
    
    
    
    329Income Tax Provision
    
    
    10
    
    
    
    37
    
    
    
    54
    
    
    
    136Minority Interest (2)
    
    
    (88
    )
    
    
    (66
    )
    
    
    (209
    )
    
    
    (147
    )Income from Continuing Operations
    
    
    29
    
    
    
    97
    
    
    
    188
    
    
    
    340Loss from Discontinued Operations,
net of tax
    
    
    (25
    )
    
    
    (4
    )
    
    
    (33
    )
    
    
    (22
    )Net Income
    
    $
    4
    
    
    $
    93
    
    
    $
    155
    
    
    $
    318Basic Earnings per Common ShareIncome from continuing operations
    
    $
    .17
    
    
    $
    .56
    
    
    $
    1.08
    
    
    $
    1.97Discontinued operations
    
    
    (.15
    )
    
    
    (.02
    )
    
    
    (.19
    )
    
    
    (.12
    )Total
    
    $
    .02
    
    
    $
    .54
    
    
    $
    .89
    
    
    $
    1.85Diluted Earnings per Common ShareIncome from continuing operations
    
    $
    .17
    
    
    $
    .56
    
    
    $
    1.07
    
    
    $
    1.96Discontinued operations
    
    
    (.15
    )
    
    
    (.02
    )
    
    
    (.18
    )
    
    
    (.12
    )Total
    
    $
    .02
    
    
    $
    .54
    
    
    $
    .89
    
    
    $
    1.84Average Common SharesBasic
    
    
    176
    
    
    
    173
    
    
    
    174
    
    
    
    172Diluted
    
    
    177
    
    
    
    174
    
    
    
    175
    
    
    
    173Dividends Declared per Common Share
    
    $
    .515
    
    
    $
    .515
    
    
    $
    1.545
    
    
    $
    1.545
 
 (1)
    
    Primarily represents gains on the sale of interests in synfuel projects.(2)
    
    Primarily represents our partners share of synfuel project
losses.




---



##### 



DTE Energy Company  Segment Net Income (Unaudited)
 Three Months Ended September 302005
    
    
    2004Reported
    
    
    
    
    
    
    Operating
    
    
    Reported
    
    
    
    
    
    
    Operating(in Millions)
    
    Earnings
    
    
    Adjustments
    
    
    Earnings
    
    
    Earnings
    
    
    Adjustments
    
    
    EarningsElectric Utility
    
    $
    114
    
    
    $
    3
    A
    
    $
    97
    
    
    $
    62
    
    
    $
    1
    A
    
    $
    62(3
    )B
    
    
    
    
    
    
    
    
    
    
    (1
    )B(17
    )CGas Utility
    
    
    161
    
    
    
    2
    A
    
    
    (18
    )
    
    
    (55
    )
    
    
    1
    A
    
    
    (31
    )(181
    )B
    
    
    
    
    
    
    
    
    
    
    23
    BNon-utility OperationsPower and Industrial Projects
    
    
    68
    
    
    
    (21
    )D
    
    
    47
    
    
    
    49
    
    
    
    
    
    
    
    49Unconventional Gas Production
    
    
    2
    
    
    
    
    
    
    
    2
    
    
    
    1
    
    
    
    
    
    
    
    1Fuel Transportation and Marketing
    
    
    (129
    )
    
    
    
    
    
    
    (129
    )
    
    
    18
    
    
    
    
    
    
    
    18(59
    )
    
    
    (21
    )
    
    
    (80
    )
    
    
    68
    
    
    
    
    
    
    
    68Corporate and Other
    
    
    (187
    )
    
    
    195
    B
    
    
    6
    
    
    
    22
    
    
    
    (24
    )B
    
    
    (2
    )(2
    )CIncome from Continuing Operations
    
    
    29
    
    
    
    (24
    )
    
    
    5
    
    
    
    97
    
    
    
    
    
    
    
    97Discontinued Operations
    
    
    (25
    )
    
    
    25
    E
    
    
    
    
    
    
    (4
    )
    
    
    4
    E
    
    
    Net Income
    
    $
    4
    
    
    $
    1
    
    
    $
    5
    
    
    $
    93
    
    
    $
    4
    
    
    $
    97
 Adjustments keyA) DTE2/SAP project costs
    
    Incremental non-recurring DTE2/SAP project costsB) Effective tax rate normalization
    
    Quarterly adjustment to normalize effective tax rate. Annual results not impactedC) Gain on sale of assets
    
    Gain from sale of landD) 2006 oil price option
    
    Mark to market on 2006 synfuel oil hedgesE) Impairment charge
    
    Impairment charge and operating results relating to the discontinuance of DTech operations




---



##### 



DTE Energy Company  Segment Diluted Earnings Per Share (Unaudited)
 Three Months Ended September 302005
    
    
    2004Reported
    
    
    
    
    
    
    Operating
    
    
    Reported
    
    
    
    
    
    
    Operating(in Millions)
    
    Earnings
    
    
    Adjustments
    
    
    Earnings
    
    
    Earnings
    
    
    Adjustments
    
    
    EarningsElectric Utility
    
    $
    0.65
    
    
    $
    0.01
    A
    
    $
    0.55
    
    
    $
    0.35
    
    
    $
    0.01
    A
    
    $
    0.35(0.02
    )B
    
    
    
    
    
    
    
    
    
    
    (0.01
    )B(0.09
    )CGas Utility
    
    
    0.92
    
    
    
    0.01
    A
    
    
    (0.09
    )
    
    
    (0.31
    )
    
    
    0.13
    B
    
    
    (0.17
    )(1.02
    )B
    
    
    
    
    
    
    
    
    
    
    0.01
    ANon-utility OperationsPower and Industrial Projects
    
    
    0.39
    
    
    
    (0.12
    )D
    
    
    0.27
    
    
    
    0.28
    
    
    
    
    
    
    
    0.28Unconventional Gas Production
    
    
    0.01
    
    
    
    
    
    
    
    0.01
    
    
    
    0.01
    
    
    
    
    
    
    
    0.01Fuel Transportation and Marketing
    
    
    (0.73
    )
    
    
    
    
    
    
    (0.73
    )
    
    
    0.11
    
    
    
    
    
    
    
    0.11(0.33
    )
    
    
    (0.12
    )
    
    
    (0.45
    )
    
    
    0.40
    
    
    
    
    
    
    
    0.40Corporate and Other
    
    
    (1.07
    )
    
    
    1.10
    B
    
    
    0.02
    
    
    
    0.12
    
    
    
    (0.14
    )B
    
    
    (0.02
    )(0.01
    )CIncome from Continuing Operations
    
    
    0.17
    
    
    
    (0.14
    )
    
    
    0.03
    
    
    
    0.56
    
    
    
    
    
    
    
    0.56Discontinued Operations
    
    
    (0.15
    )
    
    
    0.15
    E
    
    
    
    
    
    
    (0.02
    )
    
    
    0.02
    E
    
    
    Net Income
    
    $
    0.02
    
    
    $
    0.01
    
    
    $
    0.03
    
    
    $
    0.54
    
    
    $
    0.02
    
    
    $
    0.56
 Adjustments keyA) DTE2/SAP project costs
    
    Incremental non-recurring DTE2/SAP project costsB) Effective tax rate normalization
    
    Quarterly adjustment to normalize effective tax rate. Annual results not impactedC) Gain on sale of assets
    
    Gain from sale of landD) 2006 oil price option
    
    Mark to market on 2006 synfuel oil hedgesE) Impairment charge
    
    Impairment charge and operating results relating to the discontinuance of DTech operations




---



##### 



DTE Energy Company  Segment Net Income (Unaudited)
 Nine Months Ended September 302005
    
    
    2004Reported
    
    
    
    
    
    
    Operating
    
    
    Reported
    
    
    
    
    
    
    Operating(in Millions)
    
    Earnings
    
    
    Adjustments
    
    
    Earnings
    
    
    Earnings
    
    
    Adjustments
    
    
    EarningsElectric Utility
    
    $
    212
    
    
    $
    8
    A
    
    $
    200
    
    
    $
    114
    
    
    $
    6
    A
    
    $
    111(3
    )B
    
    
    
    
    
    
    
    
    
    
    (2
    )B(17
    )C
    
    
    
    
    
    
    
    
    
    
    (7
    )IGas Utility
    
    
    123
    
    
    
    4
    A
    
    
    27
    
    
    
    (22
    )
    
    
    4
    A
    
    
    (3
    )(130
    )B
    
    
    
    
    
    
    
    
    
    
    15
    B30
    DNon-utility OperationsPower and Industrial Projects
    
    
    167
    
    
    
    (33
    )E
    
    
    134
    
    
    
    138
    
    
    
    
    
    
    
    138Unconventional Gas Production
    
    
    3
    
    
    
    
    
    
    
    3
    
    
    
    4
    
    
    
    
    
    
    
    4Fuel Transportation and Marketing
    
    
    (139
    )
    
    
    
    
    
    
    (139
    )
    
    
    78
    
    
    
    (48
    )J
    
    
    3031
    
    
    
    (33
    )
    
    
    (2
    )
    
    
    220
    
    
    
    (48
    )
    
    
    172Corporate and Other
    
    
    (178
    )
    
    
    154
    B
    
    
    (26
    )
    
    
    28
    
    
    
    (14
    )B
    
    
    14(2
    )CIncome from Continuing Operations
    
    
    188
    
    
    
    11
    
    
    
    199
    
    
    
    340
    
    
    
    (46
    )
    
    
    294Discontinued Operations
    
    
    (33
    )
    
    
    (2
    )F
    
    
    
    
    
    
    (22
    )
    
    
    7
    F
    
    
    3
    G
    
    
    
    
    
    
    
    
    
    
    15
    H32
    HNet Income
    
    $
    155
    
    
    $
    44
    
    
    $
    199
    
    
    $
    318
    
    
    $
    (24
    )
    
    $
    294
 Adjustments keyA) DTE2/SAP project costs
    
    Incremental non-recurring DTE2/SAP project costsB) Effective tax rate normalization
    
    Quarterly adjustment to normalize effective tax rate. Annual results not impactedC) Gain on sale of assets
    
    Gain from sale of landD) April 2005 MPSC gas orders
    
    Impact of disallowances of 2002 gas costs and certain computer systems and equipment costsE) 2006 oil price option
    
    Mark to market on 2006 synfuel oil hedgesF) Gain on sale of Southern Missouri
    
    Gain from the sale of Southern Missouri Gas CompanyG) Gain on sale of ITC
    
    A related adjustment from the sale of International Transmission CompanyH) Impairment charge
    
    Impairment charge and operating results relating to the discontinuance of DTech operationsI) Stranded cost adjustment
    
    Stranded costs adjustment made pursuant to November 2004 MPSC orderJ) Adjustment for contract termination / modification
    
    Terminated a long-term gas exchange agreement and modified a related transportation agreement with a pipeline company




---



##### 



DTE Energy Company  Segment Diluted Earnings Per Share (Unaudited)
 Nine Months Ended September 302005
    
    
    2004Reported
    
    
    
    
    
    
    Operating
    
    
    Reported
    
    
    
    
    
    
    Operating(in Millions)
    
    Earnings
    
    
    Adjustments
    
    
    Earnings
    
    
    Earnings
    
    
    Adjustments
    
    
    EarningsElectric Utility
    
    $
    1.21
    
    
    $
    0.04
    A
    
    $
    1.14
    
    
    $
    0.66
    
    
    $
    0.04
    A
    
    $
    0.65(0.02
    )B
    
    
    
    
    
    
    
    
    
    
    (0.01
    )B(0.09
    )C
    
    
    
    
    
    
    
    
    
    
    (0.04
    )IGas Utility
    
    
    0.70
    
    
    
    0.03
    A
    
    
    0.16
    
    
    
    (0.13
    )
    
    
    0.02
    A
    
    
    (0.02
    )(0.74
    )B
    
    
    
    
    
    
    
    
    
    
    0.09
    B0.17
    DNon-utility OperationsPower and Industrial Projects
    
    
    0.95
    
    
    
    (0.19
    )E
    
    
    0.76
    
    
    
    0.80
    
    
    
    
    
    
    
    0.80Unconventional Gas Production
    
    
    0.02
    
    
    
    
    
    
    
    0.02
    
    
    
    0.02
    
    
    
    
    
    
    
    0.02Fuel Transportation and Marketing
    
    
    (0.79
    )
    
    
    
    
    
    
    (0.79
    )
    
    
    0.45
    
    
    
    (0.28
    )J
    
    
    0.170.18
    
    
    
    (0.19
    )
    
    
    (0.01
    )
    
    
    1.27
    
    
    
    (0.28
    )
    
    
    0.99Corporate and Other
    
    
    (1.02
    )
    
    
    0.88
    B
    
    
    (0.15
    )
    
    
    0.16
    
    
    
    (0.08
    )B
    
    
    0.08(0.01
    )CIncome from Continuing Operations
    
    
    1.07
    
    
    
    0.07
    
    
    
    1.14
    
    
    
    1.96
    
    
    
    (0.26
    )
    
    
    1.70Discontinued Operations
    
    
    (0.18
    )
    
    
    (0.01
    )F
    
    
    
    
    
    
    (0.12
    )
    
    
    0.04
    F
    
    
    0.01
    G
    
    
    
    
    
    
    
    
    
    
    0.08
    H0.18
    HNet Income
    
    $
    0.89
    
    
    $
    0.25
    
    
    $
    1.14
    
    
    $
    1.84
    
    
    $
    (0.14
    )
    
    $
    1.70
 Adjustments keyA) DTE2/SAP project costs
    
    Incremental non-recurring DTE2/SAP project costsB) Effective tax rate normalization
    
    Quarterly adjustment to normalize effective tax rate. Annual results not impactedC) Gain on sale of assets
    
    Gain from sale of landD) April 2005 MPSC gas orders
    
    Impact of disallowances of 2002 gas costs and certain computer systems and equipment costsE) 2006 oil price option
    
    Mark to market on 2006 synfuel oil hedgesF) Gain on sale of Southern Missouri
    
    Gain from the sale of Southern Missouri Gas CompanyG) Gain on sale of ITC
    
    A related adjustment from the sale of International Transmission CompanyH) Impairment charge
    
    Impairment charge and operating results relating to the discontinuance of DTech operationsI) Stranded cost adjustment
    
    Stranded costs adjustment made pursuant to November 2004 MPSC orderJ) Adjustment for contract termination / modification
    
    Terminated a long-term gas exchange agreement and modified a related transportation agreement with a pipeline company




---



##### 



Third Quarter Operating Earnings Adjusted for Timing-Related Items
 Third Quarter 2005
    
    
    Third Quarter 2004Diluted
    
    
    
    
    
    
    DilutedEarnings
    
    
    Net
    
    
    Earnings
    
    
    Netper Share
    
    
    Income
    
    
    per Share
    
    
    IncomeReported earnings
    
    $
    0.02
    
    
    $
    4
    
    
    $
    0.54
    
    
    $
    93DTE2 project costs
    
    
    0.02
    
    
    
    5
    
    
    
    0.02
    
    
    
    2Effective tax rate adjustment
    
    
    0.06
    
    
    
    10
    
    
    
    (0.02
    )
    
    
    (2
    )Gain on sale of assets
    
    
    (0.10
    )
    
    
    (18
    )
    
    
    
    
    
    
    Mark to market on 2006 synfuel oil hedges
    
    
    (0.12
    )
    
    
    (21
    )
    
    
    
    
    
    
    Impairment charge/Discontinued operations
    
    
    0.15
    
    
    
    25
    
    
    
    0.02
    
    
    
    4Operating earnings
    
    $
    0.03
    
    
    $
    5
    
    
    $
    0.56
    
    
    $
    97AdjustmentsDeferred recognition of synfuel revenue
    
    
    0.21
    
    
    
    37
    
    
    
    
    
    
    
    Mark-to-market on 2005 synfuel oil hedges
    
    
    (0.05
    )
    
    
    (9
    )
    
    
    
    
    
    
    Unrealized mark-to-market losses at
Energy Trading
    
    
    0.90
    
    
    
    158
    
    
    
    0.08
    
    
    
    14Total with adjustments
    
    $
    1.09
    
    
    $
    191
    
    
    $
    0.64
    
    
    $
    111
 Non-Utility Operating Earnings Per Share Variance Adjusted for Timing-Related Items
 Third Quarter
    
    
    Third Quarter2005
    
    
    2004Power & Industrial Projects reported earnings
    
    $
    0.39
    
    
    $
    0.28Mark to market on 2006 synfuel oil hedges
    
    
    (0.12
    )
    
    
    Power & Industrial Projects operating earnings
    
    $
    0.27
    
    
    $
    0.28Deferred recognition of synfuel revenue
    
    
    0.21
    
    
    
    Mark-to-market on 2005 synfuel oil hedges
    
    
    (0.05
    )
    
    
    Power & Industrial Projects total with adjustments
    
    $
    0.43
    
    
    $
    0.28Unconventional Gas Production operating earnings
    
    $
    0.01
    
    
    $
    0.01Fuel Transportation & Marketing operating earnings
    
    
    ($0.73
    )
    
    $
    0.11Unrealized mark-to-market losses at Energy Trading
    
    
    0.90
    
    
    
    0.08Fuel Transportation & Marketing total with adjustments
    
    $
    0.17
    
    
    $
    0.19




---



##### 



Third Quarter 2004 Operating Earnings Reconciliation Schedule
 Operating Net Income  Third quarter 2004
 Non-DTE
    
    
    Electric
    
    
    Gas
    
    
    Utility/CorporateEnergy
    
    
    Utility
    
    
    Utility
    
    
    & OtherPreviously reported operating earnings
    
    $
    69
    
    
    $
    62
    
    
    
    ($55
    )
    
    $
    62Effective tax rate adjustment change*
    
    
    22
    
    
    
    (1
    )
    
    
    23
    
    
    
    DTE Energy Technologies discontinued operations
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    4DTE2/SAP implementation costs
    
    
    2
    
    
    
    1
    
    
    
    1
    
    
    
    Operating earnings
    
    $
    97
    
    
    $
    62
    
    
    
    ($31
    )
    
    $
    66
 
 *
    
    We are now adjusting operating income for effective tax rate adjustments for all of the companys
business segments. We have adjusted prior periods for comparability purposes.