AmeriGas Partners Reports Third Quarter Results, Affirms Guidance.

VALLEY FORGE, Pa. -- AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE:APU), reported a seasonal loss for the Partnership's third fiscal quarter ended June 30, 2005 of $17.7 million, or $0.31 per limited partner unit, excluding a loss on the early extinguishment of debt resulting from the previously-announced refinancing of long-term debt, compared to a loss of $24.1 million or $0.45 per limited partner unit, in the same period last year. Including the loss on the early extinguishment of debt of $33.6 million, or $0.62 per limited partner unit, the third quarter net loss was $51.3 million, or $0.93 per limited partner unit.

For the three months ended June 30, 2005, retail volumes sold increased to 181.9 million gallons from 175.2 million gallons sold in the prior-year period on colder weather and as a result of acquisitions and internal growth. Nationally, weather was 4.9% warmer than normal in the 2005 period compared to weather that was 8.0% 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 (EBITDA) were $19.9 million, excluding the loss on extinguishment of debt of $33.6 million, in the fiscal 2005 period compared to $16.1 million a year ago. EBITDA including the loss on the early extinguishment of debt was a loss of $13.7 million.

Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "Although we were pleased to see our growth initiatives improve sales volumes this quarter, it was another difficult quarter for our customers who continued to experience record high prices resulting from record high propane product costs. As in all energy markets, we continue to feel the effects of price-induced customer conservation."

Revenues for the quarter were $349.5 million versus $315.1 million a year ago, principally reflecting higher propane product costs resulting from, among other things, higher crude oil and natural gas prices. Total margin increased principally as a result of higher retail volumes sold at higher average unit margins. The increase in operating expenses in the most recent quarter was due to higher vehicle fuel costs, higher general insurance costs and increased performance-based compensation expense.

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 the loss of $33.6 million on the early extinguishment of debt resulting from the refinancing. The refinancing of a portion of the debt has lowered annual interest expense meaningfully and extended the maturity of the debt by several years. The forecasted EBITDA includes a $9.1 million pre-tax gain on the sale of Atlantic Energy as previously reported.

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 Partners, L.P. will host its third quarter FY 2005 earnings conference call on Wednesday, July 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 5244555 (International replay 719-457-0820, passcode 5244555) through July 31, 2005.

The financial tables appended to this news release can be viewed directly at http://www.shareholder.com/ugi/APU/3Q05FinancialTable.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, 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.