Atmos Energy Corporation Rebrands TXU Gas with Atmos Energy Trademark on February 1.

DALLAS -- Atmos Energy Corporation (NYSE:ATO), the country's largest pure natural gas utility, said that the operations of TXU Gas Company will be rebranded with the Atmos Energy(R) registered trademark starting on February 1.

Atmos Energy completed its acquisition of the TXU Gas distribution and intrastate pipeline operations and began serving customers on October 1, 2004. The operations provide natural gas service to approximately 1.5 million utility customers in the Dallas-Fort Worth Metroplex and 550 other communities across the northern portion of Texas and operate one of the largest intrastate natural gas pipelines that crisscrosses the state. Since the acquisition, Atmos Energy has been conducting business using the TXU Gas name under an agreement with TXU Corp.

"We want the transition for TXU Gas customers to be smooth and transparent," said Robert W. Best, chairman, president and chief executive officer of Atmos Energy Corporation. "We purposively have delayed making major changes to ensure stability in the operations and to prepare for rebranding the business under our own name."

Best said that the TXU Gas name will be changing to Atmos Energy on customers' bills as well as on employees' uniforms, vehicles, buildings, forms and stationery, pipeline markers, the TXU Gas customer Web site and other areas of identity.

To communicate the name change, Atmos Energy began inserting information in customers' bills in early December and launched a concentrated advertising campaign in mid January on television, cable, radio and in newspapers across the 111-county service territory.

"It is essential--for safety reasons as well as just good business--that Atmos Energy inform its customers that we are now their natural gas provider," Best said. "Their gas service will still be the same and will still be provided by the same experienced and dedicated gas employees who joined us from TXU. However, we are making other changes to provide excellence in service and increase our commitment to the communities we serve for economic development and community needs."

Best noted that Atmos Energy announced last November it would assume the operation of a Waco, Texas, customer call center that has been serving TXU Gas and other utility customers.

"We believe it's critical that this first point of contact with our customers be under our own management and reflect our values of how we deal with our customers," Best said. "We think it's essential that this service be by our own employees and be based here in Texas, not overseas."

Atmos Energy has offered employment to more than 225 of the Waco call center's employees. It will begin operating the center on April 1 and will take ownership on October 1.

Best said Atmos Energy continues to rely on TXU Corp. and its joint venture with Capgemini to provide some outsourced services, such as meter reading and bill distribution, to allow time to convert the remaining TXU Gas information and back-office systems to its own systems.

"The rebranding of TXU Gas is taking place now," he said. "By next September, we expect to have all the behind-the-scenes changes completed and under our direct management."

Atmos Energy Corporation, headquartered in Dallas, Texas, is the largest natural-gas-only distributor in the United States, serving about 3.1 million utility customers. Atmos Energy's utility operations serve more than 1,500 communities in 12 states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. Atmos Energy's nonutility operations, organized under Atmos Energy Holdings, Inc., operate in 18 states. They provide natural gas marketing and procurement services to industrial, commercial and municipal customers and manage company-owned natural gas storage and pipeline assets, including one of the largest intrastate natural gas pipelines in Texas. For more information, visit www.atmosenergy.com.

Forward-Looking Statements 

The matters discussed in this news release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this news release are forward-looking statements made in good faith by the Company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this news release or in any of the Company's other documents or oral presentations, the words "anticipate," "believes," "estimate," "expect," "forecast," "goal," "intends," "objective," "plans," "projection," "seek," "strategy" or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in this news release, including the successful integration of the Company's acquisition of the operations of TXU Gas, the Company's ability to continue to access the capital markets and the other factors discussed in the Company's SEC filings. These factors include the risks and uncertainties discussed in the Company's Form 10-K for the fiscal year ended September 30, 2004. Although the Company believes these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. The Company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

Note to editors and assignment desks: Most former TXU Gas local offices have employees in their new Atmos Energy uniforms and vehicles with the Atmos Energy logo for local stories.

Graphics files of the Atmos Energy trademark, photos of a TXU Gas sign being removed and an Atmos Energy sign being installed, and photos of Atmos Energy's operations are available at www.atmosenergy.com/newbrand/downloads.html.

A video news release, with stock footage, is at http://www.vnr1.tv/display_video.asp?id=263. A radio news release can be downloaded at http://www.vnr1.tv/display_audio.asp?id=128. TV B-roll is available by calling Ray Granado of Atmos Energy at 214-875-2270.