AmeriGas Partners Reports Significant Increase in Earnings.

Business Editors

VALLEY FORGE, Pa.--(BUSINESS WIRE)--April 30, 2003

AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE:APU), reported net income for the Partnership's second quarter of fiscal 2003 ended March 31, 2003 of $89,876,000, or $1.80 per limited partner unit, compared to $81,989,000, or $1.64 per limited partner unit, in the same period last year.

Results for the March 2003 quarter include a loss of $3,023,000, or $0.06 per limited partner unit, related to a refinancing of certain debt as previously reported.

For the three months ended March 31, 2003, retail volumes sold rose 8.3% to a second quarter record 393.4 million gallons versus 363.4 million gallons sold in the prior-year period. Weather was essentially normal during the recent quarter compared to weather that was approximately 8.5% 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, loss on debt extinguishments and minority interests (EBITDA) were $134,084,000 in the fiscal 2003 period compared to $120,850,000 a year ago. Operating income was $115,547,000 in the most recently completed quarter compared to $104,644,000 in the 2002 quarter.

Lon R. Greenberg, chairman of AmeriGas, said, "We are pleased to see improved results in a difficult environment. Weather in the eastern portion of the continental U. S. was colder than normal, but the western regions were significantly warmer than normal. In this quarter, we overcame the triple challenges of this bifurcated national weather pattern, the continued sluggish economy adversely affecting our non-weather sensitive sales volumes, and uncertainty in the energy markets related to international events that produced the highest propane product cost in over a decade."

Eugene V. N. Bissell, chief executive officer of AmeriGas, added, "The combination of higher sales volumes, together with our continued emphasis on management of operating expenses and margins, produced improved results this quarter. Our employees did an outstanding job serving our customers even as the colder weather and higher commodity prices caused heating bills to increase substantially over last winter in many areas of the country."

Revenues for the quarter were $625,546,000 versus $460,122,000 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 compensation, vehicle, equipment maintenance and bad debt expenses related to higher sales volumes and higher commodity prices as well as higher employee benefit and general insurance expenses.

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 the financial community about second quarter fiscal year 2003 results on Wednesday, April 30, 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 476376, until midnight ET May 4, 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.