AmeriGas Partners Reports Second Quarter Results; Affirms Fiscal Year Guidance.

VALLEY FORGE, Pa. -- AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE:APU), reported net income for the Partnership's second fiscal quarter ended March 31, 2005 of $96.2 million or $1.49 per diluted limited partner unit, compared to $105.7 million, or $1.68 per diluted limited partner unit, in the same period last year. Average diluted units outstanding were 4% higher for the recent quarter.

Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) were $135.2 million in the second fiscal quarter of 2005 compared to $146.6 million a year ago. For the three months ended March 31, 2005, retail volumes sold declined to 378.8 million gallons from 403.9 million gallons sold in the prior-year period. Weather was approximately 5% warmer than normal during the recent quarter compared to weather that was 1.5% 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, "The lower retail sales volumes we experienced this quarter reflect warmer than normal winter weather and price-induced customer conservation resulting from higher retail selling prices driven by historically high propane product costs. The average wholesale propane cost per gallon at Mt. Belvieu, Texas, a major supply point, during the quarter rose 17% over the prior year."

Revenues for the quarter were $698.3 million versus $687.7 million a year ago, principally reflecting higher propane selling prices caused by higher propane product costs. Operating and administrative expenses declined by $2.3 million from $139.4 million to $137.1 million during the quarter mainly reflecting the implementation of warm weather action plans that will continue for the remainder of the fiscal year. Lower personnel and vehicle repair expenses were partially offset by the impact of higher vehicle fuel and lease expenses.

AmeriGas Partners is the nation's largest retail propane marketer, serving nearly 1.3 million customers from over 650 locations in 46 states. UGI Corporation (NYSE:UGI), through subsidiaries, owns 46% of the Partnership and individual unitholders own the remaining 54%.

AmeriGas expects to report EBITDA for its fiscal year ending September 30, 2005 within the range of $245 million to $255 million for the year, excluding a loss of up to $35 million on the expected early extinguishment of debt resulting from a previously-announced proposed refinancing. The refinancing of a portion of the debt should lower annual interest expense meaningfully and extend the maturity of the debt by several years. The refinancing is expected to be completed by May 3. The forecasted EBITDA includes a $9.1 million pre-tax gain on the sale of Atlantic Energy as previously reported.

AmeriGas Partners, L. P. will host its second quarter FY 2005 earnings conference call on Wednesday, April 27, 2005, 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 9551284 (International replay 719-457-0820, passcode 9551284) through May 3, 2005.

The financial tables appended to this news release can be viewed directly at http://www.shareholder.com/ugi/APU/2Q05/FinancialTable.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. Among them are adverse weather conditions, product cost volatility and availability of propane, the capacity to transport propane to our market areas, regional economic conditions and the completion of a refinancing of debt. You should read the Partnership's Annual Report on Form 10-K for a more extensive list of factors that could affect results. 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.