AmeriGas Partners Reports Higher First Quarter Results, Affirms Guidance.

VALLEY FORGE, Pa. -- AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE:APU), reported net income of $55.0 million, or $0.87 per limited partner unit, for the fiscal quarter ended December 31, 2005, compared to adjusted net income of $37.2 million, or $0.67 per limited partner unit, for the same period last year, excluding the $7.1 million, or $0.10 per limited partner unit, gain on the sale of AmeriGas' 50% interest in a propane import terminal in the prior year's quarter. Net income for last year's first quarter including the gain was $44.3 million, or $0.77 per limited partner unit. Average diluted units outstanding were 4.2% higher for the recent quarter principally as a result of a common unit offering in September 2005.

The Partnership's earnings before interest expense, income taxes, depreciation and amortization (EBITDA) were $92.2 million for the first fiscal quarter of 2006 compared to adjusted EBITDA of $77.3 million a year ago, excluding the $9.1 million pre-tax gain on the sale of the terminal. EBITDA for the prior year quarter including the gain was $86.4 million. For the three months ended December 31, 2005, retail volumes sold declined modestly to 291.9 million gallons from 296.8 million gallons sold in the prior-year period. Weather was 4.1% warmer than normal during the recent quarter compared to weather that was 8.0% warmer than normal in the prior-year period, according to the National Oceanic and Atmospheric Administration.

Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "We are pleased to be reporting improved earnings for the quarter, especially considering the warmer than normal weather, and continuing issue of record high energy prices. Although weather was colder than last year, volumes sold to agricultural customers were down due to a weak grain drying season, and we continue to experience customer conservation due to higher propane prices. Higher energy prices also affected vehicle fuel expense and bad debt expense, which accounted for most of the year-on-year increase in expenses. We were able to offset the effects of the lower volumes and higher vehicle fuel and bad debt expense through operating expense control and effective margin management while maintaining competitive prices. While January was extraordinarily warm, assuming normal weather for the remainder of the fiscal year, we continue to expect adjusted EBITDA in the range of $255 million to $265 million, excluding the loss on early extinguishment of debt of approximately $16 million that we expect to incur in the second fiscal quarter resulting from the previously-announced refinancing of long term debt at lower interest rates."

Revenues for the quarter were $630.2 million versus $556.2 million a year ago, principally reflecting higher propane product prices. Operating and administrative expenses rose modestly during the quarter mainly reflecting the impact of higher vehicle costs associated with increased fuel prices and lease expenses and higher bad debt expense partially offset by lower long term compensation expense.

AmeriGas Partners is the nation's largest retail propane marketer, serving nearly 1.3 million customers from approximately 650 locations in 46 states. UGI Corporation (NYSE:UGI), through subsidiaries, owns 44% of the Partnership and individual unitholders own the remaining 56%.

AmeriGas Partners, L. P. will host its first quarter FY 2006 earnings conference call on Wednesday, February 1, 2006, at 4:00 PM ET. Interested parties may listen to a live audio broadcast of the conference call at http://www.shareholder.com/ugi/medialist.cfm. A telephonic replay of the call can be accessed approximately one hour after the completion of the call at 1-888-203-1112, passcode 4192011 (International replay 719-457-0820, passcode 4192011) through midnight Friday, February 3, 2006.

The financial tables appended to this news release can be viewed directly at http://www.shareholder.com/ugi/APU/1Q06FinancialTable.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, increased customer conservation measures, 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.