AmeriGas Partners Reports Third Quarter Results, Growth Initiatives Continue.

Business Editors

VALLEY FORGE, Pa.--(BUSINESS WIRE)--July 26, 2000

AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE:APU), reported a seasonal loss for the Partnership in the third quarter ended June 30, 2000 of $21,246,000 or $0.50 per limited partner unit, compared to $18,477,000, or $0.44 per limited partner unit in the same period for 1999.

Retail propane sales volumes declined to 135.4 million gallons during the quarter from 140.5 million gallons during the third quarter of fiscal 2000 on weather that was 4% warmer than the prior-year period and 9% warmer than normal according to information published by the National Oceanographic and Atmospheric Administration. Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) were $13,803,000 for the quarter versus $14,078,000 for the same quarter of fiscal 1999.

Lon R. Greenberg, AmeriGas chairman, said, "We remain pleased with our results so far this year in light of the challenges we faced. Record warm weather this spring and higher propane product costs during the quarter were somewhat offset by effective margin management and slightly lower operating expenses. We recently acquired two quality propane businesses, adding nearly 24 million annual gallons of retail sales." Interest expense for the third quarter increased over the prior-year period due to borrowings for recent acquisitions and growth capital and increased working capital borrowings reflecting higher propane product costs. "Our employees continue to control expenses even while they grow the business through the acquisition of profitable retailers and capture organic growth by exploiting our national footprint of retail outlets," noted Greenberg.

For the nine months ended June 30, 2000, retail sales volumes were 635.9 million gallons compared to 646.0 million gallons sold in the prior-year period on record warm weather that was 14 % warmer than normal and approximately 4% warmer than last year. Net income for the first nine months of fiscal 2000 was $46,960,000 or $1.11 per limited partner unit versus $54,569,000 or $1.29 per limited partner unit in fiscal 1999. EBITDA for the nine-month period was $151,514,000 compared with $153,138,000 a year ago.

AmeriGas Partners is one of the nation's largest retail propane marketers, operating from approximately 600 district locations in 46 states. UGI Corporation (NYSE:UGI), through subsidiaries, owns 58% of the Partnership and individual unitholders own the remaining 42%.

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 1999 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.

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