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THE EMPIRE DISTRICT ELECTRIC COMPANY

ANNOUNCES EXERCISE OF OVER-ALLOTMENT OPTION

JOPLIN, MO, June 20, 2006 - The Empire District Electric Company (NYSE:EDE) announced today that the underwriters in its pending offering of common stock have exercised in full their option to purchase an additional 495,000 shares from Empire to cover over-allotments. The shares will be priced at the public offering price of $20.25 per share. UBS Investment Bank is the sole book-running manager. A.G. Edwards & Sons, Inc., Jefferies & Company, Inc. and Stifel, Nicolaus & Company, Incorporated are acting as co-managers. The closing of the offering and the over-allotment option is anticipated to occur on or about June 21, 2006.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any shares of Empire’s common stock. The offering of shares was made by means of a prospectus, including a prospectus supplement, forming a part of Empire’s effective shelf registration statement, a copy of which can be obtained from UBS Securities LLC, Attn: Prospectus Dept., 299 Park Avenue, New York, NY 10171, (212) 713-2626.

Based in Joplin, Missouri, The Empire District Electric Company (NYSE:EDE) is an investor-owned utility providing electric service to approximately 162,000 customers in southwest Missouri, southeast Kansas, northeast Oklahoma and northwest Arkansas; natural gas service to approximately 48,500 customers in northwest, north central and west central Missouri; and water service to about 4,600 customers in three southwest Missouri communities. The Company also provides fiber optic and Internet services, customer information software services and has an investment in close-tolerance, custom manufacturing.

Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements address future plans, objectives, expectations and events or conditions concerning various matters. Actual results in each case could differ materially from those currently anticipated in such statements, by reason of the factors noted in our filings with the SEC, including the most recent Form 10-K and Form 10-Q.