AGL Networks Expands into Phoenix Market; Dark-Fiber Provider Builds on Success in Atlanta.

Business Editors

ATLANTA--(BUSINESS WIRE)--Dec. 19, 2002

AGL Networks, LLC (AGLN), a wholly owned subsidiary of AGL Resources Inc. (NYSE: ATG), today announced it has acquired dark-fiber network assets in Phoenix, Arizona.

The move into the Phoenix market expands the company's network capabilities and builds on its success in providing dark-fiber services to customers in the Atlanta market.

The Phoenix network, which includes dark-fiber capabilities in both Phoenix and Tempe, Arizona, is scheduled to be available for customer traffic by the end of the year. Initially, the network will provide the capability to serve more than 500 area businesses.

With the addition of Phoenix, AGL Networks has added 60 miles of network footprint and more than 17,000 fiber miles to its existing portfolio, which includes a 175-mile fiber route and 50,000 fiber miles in Atlanta.

"We are pleased about expanding the network capabilities we began in Atlanta in 2000," said Eric Martinez, Executive VP and General Manager of AGL Networks. "Phoenix is an ideal city for us since it is a logical fit into our business model. We began researching this move when a customer asked us to provide services for them in the Phoenix area. With our anchor tenant, we will be able to build upon our existing success, using the model we developed in Atlanta."

"Many customers today prefer to have control over their telecommunications and data infrastructures rather than depending upon providers who may be challenged in keeping up with increasing bandwidth demands," said Gordon Stark, Senior Vice President of Sales and Marketing with AGLN. "With dark-fiber, our customers realize the benefits of protocol and vendor independence, the ability to increase bandwidth on demand, improved security, significant reductions in local telecommunications costs, and flexibility in applications, capacity and equipment."

About AGL Networks

AGL Networks, LLC, a wholly owned subsidiary of AGL Resources Inc. (NYSE: ATG), provides last-mile fiber optic solutions to telecommunications service providers and business customers in Atlanta, Georgia and Phoenix, Arizona. The company's primary focus is designing, constructing and managing fiber-optic networks. AGL Networks offers dark-fiber leasing, construction services and customer network builds. For more information, visit www.aglnetworks.com.

AGL Resources Inc. (NYSE: ATG) is an Atlanta-based energy services holding company. Nearly 2 million natural gas customers are served through subsidiaries Atlanta Gas Light Company, Virginia Natural Gas and Chattanooga Gas Company. Houston-based subsidiary Sequent Energy Management provides asset management services, including the wholesale trading, marketing, gathering and transportation of natural gas. As a member of the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. AGL Networks, the company's telecommunications subsidiary, owns and operates fiber optic networks in Atlanta and Phoenix. For more information, visit www.aglresources.com.