AGL Resources Inc. Reports Second Quarter Results

ATLANTA, April 27-- AGL Resources Inc. (NYSE: ATG) today reported basic earnings per share for its second fiscal quarter of 41 cents, again exceeding analysts' consensus expectations.

"We are making significant progress in meeting our goals," said Walter M. Higgins, Chairman and CEO. "Atlanta Gas Light Company's aggressive steps in reducing costs and increasing operational efficiencies contributed to our positive results. Additionally, Georgia Natural Gas Services, the largest natural gas marketer in Georgia, again made a positive contribution to our bottom line."

Net income was $22.7 million for the second fiscal quarter this year compared with $24.2 million for the same period last year.

Six-Month Results

Year-to-date basic earnings per share increased to 71 cents per share from 70 cents per share a year ago. The earnings increase is primarily attributable to the same factors driving the company's second quarter results.

"Our results for the first two fiscal quarters demonstrate our commitment to transforming this company," said Higgins. "I commend the AGL Resources employee team for their superb performance in helping us achieve our business objectives."

For the six months ended March 31, 2000, the company reported net income of $39.8 million, compared with $40.1 million a year ago.

Transition to Competition

With the transition to competition, Atlanta Gas Light Company no longer sells natural gas to customers in Georgia, but the utility does continue to provide intrastate delivery service to Georgia customers. As a result, certain utility operating results, including operating revenue and cost of gas, do not follow the same pattern as they have historically. Specifically, as the utility's operating revenue associated with the sale of gas declines, there is a comparable decline in the utility's gas costs. This anticipated decrease in utility revenues does not affect earnings.

AGL Resources Inc. is a regional energy holding company with operations in the Southeast. Atlanta Gas Light Company, the largest natural gas distributor in the Southeast and the company's primary subsidiary, provides delivery service to more than 1.5 million customers in Georgia and Chattanooga, Tennessee. Although natural gas distribution is AGL Resources' core business, it also is engaged in other energy-related businesses, including retail energy marketing, customer care services for energy marketers, and wholesale and retail propane sales.

The company's home page address on the Internet is www.aglresources.com.

This press release contains forward-looking statements. AGL Resources wishes to caution readers that the assumptions, which form the basis for the forward-looking statements, include many factors that are beyond AGL Resources' ability to control or estimate precisely. Those factors include, but are not limited to, the following: changes in the price and demand for natural gas; the impact of changes in state and federal legislation and regulation on the company and the natural gas industry; the effects of competition, particularly in markets where prices and providers historically have been regulated; financial market conditions; and other risks described in our documents on file with the Securities and Exchange Commission.