AmeriGas Partners Reports Third Quarter Results, Affirms 2006 Guidance.

VALLEY FORGE, Pa. -- AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE:APU), reported a seasonal net loss for the third fiscal quarter ended June 30, 2006 of $14.8 million compared to a loss of $17.7 million, excluding a loss on the early extinguishment of debt, in the same period last year. Including the loss on the early extinguishment of debt of $33.6 million, the prior year third quarter net loss was $51.3 million. Average diluted units outstanding were 4.2% higher for the recent quarter principally as a result of a common unit offering in September 2005.

The Partnership's earnings before interest expense, income taxes, depreciation and amortization (EBITDA) were $20.7 million for the third fiscal quarter of 2006 compared to EBITDA of $19.9 million, excluding the loss on extinguishment of debt of $33.6 million (adjusted EBITDA), a year ago. EBITDA in the 2005 fiscal third quarter, including the loss on extinguishment of debt, was a loss of $13.7 million.

Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "Our retail volumes declined 10.8 million gallons to 171.1 million gallons this quarter due to warmer weather and price-induced customer conservation. Weather for the quarter was 21.9% warmer than normal compared to weather that was 4.9% warmer than normal in the prior-year period, according to the National Oceanic and Atmospheric Administration (NOAA). Despite the lower volumes, we continue to expect to earn adjusted EBITDA in the range of $245 million to $255 million for the fiscal year ending September 30, 2006."

Revenues for the quarter were $379.1 million versus $349.5 million a year ago due to higher retail selling prices partially offset by lower sales volumes due to warmer weather and customer conservation. Operating and administrative expenses increased $3.8 million during the quarter due to higher vehicle fuel and lease costs, higher employee compensation and benefits expense and increased bad debt expense partially offset by a favorable net adjustment in reserves for general insurance, mainly reflecting continued improvement in claims history.

AmeriGas Partners is the nation's largest retail propane marketer, serving nearly 1.3 million customers from approximately 650 locations in 46 states. UGI Corporation (NYSE:UGI), through subsidiaries, owns 44% of the Partnership and individual unitholders own the remaining 56%.

AmeriGas Partners, L.P. will host its third quarter FY 2006 earnings conference call on Wednesday, July 26, 2006, 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 4258637 (International replay 719-457-0820, passcode 4258637) through midnight Friday, July 28, 2006.

The financial table appended to this news release can be viewed directly at http://www.shareholder.com/ugi/APU/3Q06FinancialTable.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 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, increased customer conservation measures, the capacity to transport propane to our market areas and political, economic and regulatory conditions in the U.S. and abroad. 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.