BUYING COLUMBIA PROPANE MAKES AMERIGAS LARGEST U.S. PROPANE MARKETER

AmeriGas Partners L.P. (NYSE: APU), agreed to buy Columbia Energy Group's retail propane operations from NiSource Inc. (NYSE: NI) for approximately $208 million. The combination will create the nation's largest retail propane marketer, distributing more than 1 billion retail gallons from over

The Columbia propane businesses became part of NiSource when Columbia merged with the Naperville, Ind., natural gas utility holding company this past November. They currently comprise the fifth largest retail marketer in the country, selling more than 307 million gallons annually from 186 locations in 29 states, AmeriGas indicated. It will finance the purchase with approximately $163 million of debt and $53 million of common units that it will issue to NiSource.

AmeriGas Chairman Lon R. Greenberg said that the purchase follows the partnership's growth strategy. "For many years, one of our strategic goals has been to grow through the acquisition of both small and large marketers. Given our track record of successfully integrating large distributors, we are confident that we will be able to achieve our financial goals for this acquisition," he noted. "We expect the financial results of Columbia to be accretive to earnings and cash flow in the first full fiscal year of our ownership."

"The Columbia operations will add density to our existing business and, at the same time, provide us with opportunities to penetrate new markets," added AmeriGas Chief Executive Officer Eugene V.N. Bissell. "We are pleased to have capitalized on this opportunity to add significantly to our nationwide platform for growth. Columbia also complements our extensive logistical network. We believe this transaction will not only enhance our ability to serve customers, but also present additional opportunities for the employees of both companies."