AmeriGas Partners Reports Record Results.

Business Editors

VALLEY FORGE, Pa.--(BUSINESS WIRE)--Jan. 31, 2001

AmeriGas Propane, Inc., general partner of AmeriGas Partners, L. P. (NYSE: APU), reported income for the Partnership's first quarter of fiscal 2001 of $0.82 per limited partner unit, excluding the beneficial cumulative effect of accounting changes, or 82% higher than the $0.45 per limited partner unit in the same period last year.

Net income for the quarter, including the cumulative benefit of the accounting changes, was $48,405,000, or $1.10 per unit, compared with $19,007,000, or $0.45 per unit, in the same period last year.

For the three months ended December 2000, retail volumes sold were a Partnership record 257 million gallons, a 10% increase over the 233.7 million gallons sold in the prior-year period which included the beneficial effects of increased volume attributable to Y2K-related purchases by customers.

Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) increased more than 39% to a Partnership record of $75,144,000 in the fiscal 2001 quarter from $53,991,000 a year ago.

Nationally, weather was 13% colder than normal in the recently-completed quarter and 14% warmer than normal in last year's comparable quarter, according to the National Oceanic and Atmospheric Administration.

Lon R. Greenberg, chairman of AmeriGas, said, "We are pleased to report these record results, which are directly attributable to the pursuit of our strategies over the last several years.

"Both retail sales volumes and EBITDA were the highest of any December quarter since the inception of the Partnership in early 1995. The earnings potential of AmeriGas has become apparent with the return of colder winter weather."

Eugene V. N. Bissell, chief executive officer of AmeriGas, added, "Our fuel supply and pricing strategies once again achieved our objective of maintaining competitive prices during a period of increasing supply and delivery costs for propane. Our extensive logistical network proved invaluable during this period of tight supply as well. I congratulate all of our employees for their close attention to customer service during this very difficult period."

Operating expenses were only modestly higher, reflecting productivity enhancements attributable to business model transformation efforts.

Revenues for the quarter, which reflect the higher propane product costs and increased sales, were $432,468,000 versus $301,048,000 a year ago. As previously reported in the AmeriGas Partners Annual Report, during the quarter the Partnership changed its method of accounting for tank rental fees and tank installation costs which are not billed to customers directly.

This change resulted in a cumulative effect increase to net income for the quarter of $12,494,000, or $0.28 per unit, but will have no material impact on the Partnership's financial condition.

AmeriGas Partners is one of the nation's largest retail propane marketers, serving nearly one million customers. UGI Corporation (NYSE:UGI), through subsidiaries, owns 55% of the Partnership and individual unitholders own the remaining 45%.

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

This press release may contain 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 which are difficult to predict and many of which are beyond management's control.

You should read the Partnership's 2000 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, and the capacity to transport propane to our market areas.

The Partnership undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.