AmeriGas Partners Reports Earnings Increase.

Business Editors/Energy Writers

VALLEY FORGE, Pa.--(BUSINESS WIRE)--April 28, 2004

AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE:APU), reported that net income for the Partnership's second quarter of fiscal 2004 ended March 31, 2004 rose over 17% to $105.7 million, or $1.99 per limited partner unit, compared to $89.9 million, or $1.80 per limited partner unit, in the same period last year. Results for the March 2003 quarter include a loss of $3.0 million, or $0.06 per limited partner unit, related to a refinancing of certain debt as previously reported. Average units outstanding were approximately 6% higher for the recent quarter as a result of a common unit offering completed in June 2003.

For the three months ended March 31, 2004, retail volumes sold rose 2.7% to a second quarter record 403.9 million gallons versus 393.4 million gallons sold in the prior-year period. Weather was approximately 1.5% warmer than normal during the recent quarter compared to weather that was approximately 1.0% colder than normal in the prior-year period according to the National Oceanic and Atmospheric Administration. Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) were $146.6 million in the fiscal 2004 period compared to $129.9 million a year ago. Operating income was $128.0 million in the most recently completed quarter compared to $115.5 million in the 2003 quarter.

Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "Retail volumes sold increased primarily due to the October 2003 acquisition of Horizon Propane, partially offset by the continuing effects of the weakened economy on commercial and industrial customer sales volumes. We continue to invest in acquisitions and in our grill cylinder exchange business to exploit our national footprint."

Revenues for the quarter were $687.7 million versus $625.5 million a year ago, principally reflecting higher propane product costs as well as higher propane sales volumes. Operating expenses rose during the quarter mainly reflecting the Horizon Propane acquisition and, to a lesser extent, slightly higher expenses associated with the Partnership's PPX(R) grill cylinder exchange program. "The expense increases related to our growth initiatives were partially offset by the beneficial effects of the management realignment completed in late fiscal 2003," added Bissell.

Separately, AmeriGas Partners confirmed its earnings guidance for the fiscal year ending September 30, 2004 of approximately $250 million of EBITDA, or net income of approximately $88 million.

AmeriGas Partners is the nation's largest retail propane marketer, serving nearly 1.3 million customers from over 700 locations in 46 states. UGI Corporation (NYSE:UGI), through subsidiaries, owns 48% of the Partnership and individual unitholders own the remaining 52%.

AmeriGas Partners invites interested parties to listen to the live audio webcast of management's teleconference with the financial community about second quarter fiscal year 2004 results on Wednesday, April 28, 2004, at 4:00 PM Eastern time. The audio teleconference is available online at http://www.shareholder.com/ugi/medialist.cfm. A telephonic replay of the call can be accessed approximately two hours after the completion of the call at 1-888/203-1112, (International replay 719/457-0820) passcode 419494, until midnight ET May 2, 2004.

The financial tables appended to this news release can be viewed directly at http://www.shareholder.com/ugi/APU/2Q04FinancialTable.pdf.

This press release contains certain forward-looking statements which management believes to be reasonable as of today's date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management's control. You should read the Partnership's Annual Report on Form 10-K for a more extensive list of factors that could affect results. Among them are adverse weather conditions, price volatility and availability of propane, the capacity to transport propane to our market areas and political, economic and regulatory conditions in the U. S. and abroad. The Partnership undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.

Comprehensive information about AmeriGas is available on the Internet at www.amerigas.com.