Husky Reports Quarterly Dividend

Husky Energy Inc.

The board of directors of Husky Energy Inc. on Friday declared a second-quarter dividend of CDN$0.50 per share on its common shares, payable on Oct. 2, 2006, to shareholders of record at the close of business on August 25, 2006.

This second quarter dividend represents an increase of 100 percent over the first quarter dividend of CDN$0.25 per share. The increased quarterly dividend allows shareholders to benefit directly from the strength of Husky's earnings and cash flows resulting from continuing high commodity prices and the successful execution of the White Rose oil development, offshore Newfoundland and Labrador.

The board will continue to review the company's dividend policy from time to time based on its sustainable earnings, financial position, and growth prospects. With this increase in the regular dividend, the board does not expect to declare a special dividend in 2006.

Husky Energy is a Canada-based, integrated energy and energy-related company headquartered in Calgary, Alberta.