AmeriGas Partners Reports Record 2003 Results.

Business Editors

VALLEY FORGE, Pa.--(BUSINESS WIRE)--Nov. 19, 2003

AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE:APU), reported net income for the Partnership of $72.0 million, or $1.42 per limited partner unit for the fiscal year ended September 30, 2003 compared to $55.4 million or $1.12 per limited partner unit for fiscal year 2002. Average diluted limited partner units outstanding increased 2.9% over the prior year. Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) of $234.4 million for fiscal 2003 were significantly higher than the $209.6 million recorded in fiscal 2002. As previously announced, AmeriGas incurred $3.8 million of costs associated with a realignment of its management structure and a $3.0 million loss on extinguishment of debt associated with a refinancing during fiscal 2003. Weather was essentially normal in fiscal 2003 compared to 10% warmer than normal in fiscal 2002 according to information published by the National Oceanic and Atmospheric Administration.

Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "The return of normal weather demonstrated the earnings power of an AmeriGas built on internal growth, quality acquisitions and attention to customer satisfaction. During the year we made significant progress in growing our retail customer base, expanding our strategic accounts program, adding over 2,000 new PPX(R) cylinder exchange outlets and acquiring several high quality regional marketers."

Retail propane sales volumes in fiscal 2003 were nearly 1.1 billion gallons, up 9% compared to 987.5 million gallons in the prior year, principally as a result of colder weather and partially reduced by the effects of price-induced customer conservation and continued economic weakness. Revenues increased to $1.63 billion in fiscal 2003 from $1.31 billion in the prior-year period as a result of higher volumes sold and higher selling prices reflecting higher propane product costs. Operating expenses increased principally as a result of higher distribution costs related to higher volumes delivered, higher medical and general insurance, higher incentive compensation and higher uncollectible accounts.

For the fourth quarter of fiscal 2003, the Partnership recorded a seasonal net loss of $31.4 million or $0.59 per limited partner unit compared with a net loss of $35.1 million, or $0.70 per limited partner unit for the year-earlier period. Retail volumes sold in the quarter were 174.9 million gallons versus 161.3 million gallons in last year's fourth quarter. EBITDA for the period increased to $10.5 million from $3.2 million in the prior-year quarter on higher total margin from higher volumes sold partially offset by an increase in operating expenses. Revenue for the quarter totaled $270.7 million versus $221.9 million in the prior-year quarter principally due to higher unit sales at higher selling prices reflecting higher propane product costs.

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, L.P. will host its fourth quarter FY 2003 earnings conference call on Wednesday, November 19, 2003, 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 888/203-1112, passcode #778835 (International replay 719/457-0820, passcode #778835) through November 24, 2003.

The financial table appended to this news release can be viewed directly at http://www.shareholder.com/ugi/APU/4Q03FinancialTable.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 2002 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 http://www.amerigas.com.