AmeriGas Partners Reports Improved First Quarter Results.

Business Editors

VALLEY FORGE, Pa.--(BUSINESS WIRE)--Jan. 29, 2003

AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE: APU), reported net income for the Partnership's first quarter of fiscal 2003 ended December 31, 2002 of $40,912,000, or $0.82 per limited partner unit, compared to $18,397,000, or $0.38 per limited partner unit, in the same period last year. Average units outstanding were 4.2% higher for the recent quarter as a result of a common unit offering in December 2001.

For the three months ended December 31, 2002, retail volumes sold rose over 15% to a first quarter record 306.6 million gallons versus 265.6 million gallons sold in the prior-year period. Weather was essentially normal during the recent quarter compared to weather that was approximately 15% warmer than normal in the prior-year period according to the National Oceanic and Atmospheric Administration. Earnings before interest expense, income taxes, depreciation and amortization, equity investee income and minority interests (EBITDA) were $81,655,000 in the fiscal 2003 period compared to $57,936,000 a year ago.

Lon R. Greenberg, chairman of AmeriGas, said, "We are pleased to demonstrate the earnings power of AmeriGas in a relatively normal weather environment. Our steady focus on our strategic goals over the years has produced notable results for our unitholders."

Eugene V. N. Bissell, chief executive officer of AmeriGas, added, "The combination of higher sales volumes attributable to normal winter weather, together with our continued emphasis on management of operating expenses and margins, produced excellent results this quarter. We are well positioned to take advantage of improvements in our business as the overall economy improves. Also, I want to thank all of our employees for their continued commitment to superior customer service during the recent period of cold weather and rising commodity prices."

Revenues for the quarter were $445,031,000 versus $371,385,000 a year ago, principally reflecting higher propane sales volumes as well as higher propane product costs. Operating expenses rose during the quarter mainly reflecting higher sales volumes delivered.

AmeriGas Partners is the nation's largest retail propane marketer, serving nearly 1.2 million customers from approximately 650 locations in 46 states. UGI Corporation (NYSE:UGI), through subsidiaries, owns 51% of the Partnership and individual unitholders own the remaining 49%.

AmeriGas Partners invites interested parties to listen to the live webcast of management's teleconference with financial analysts about first quarter fiscal year 2003 financial results on Wednesday, January 29, 2003, at 4:00 PM Eastern time. The teleconference is available online live, in audio format, 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 888/203-1112, (International replay 719/457-0820) passcode 150311, until midnight ET February 2, 2003.

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 regional economic conditions. 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.