CTG Resources Announces New Strategic Vision and Structure: Goals Include Major Growth Initiatives.

HARTFORD, Conn.--(BUSINESS WIRE)--July 11, 1997--CTG Resources Inc. (NYSE:CTG), the holding company of Connecticut Natural Gas Corp. and its unregulated subsidiary, The Energy Network has announced a new strategic vision for the company and an organizational structure designed to position CTG for future success in a deregulated environment.

Arthur C. Marquardt, president and chief operating officer of CTG said, "This new and ambitious vision has been developed with the input of many of our management and staff. It includes significant growth in all aspects of our regulated and unregulated operations. The new vision states, in part, that `CTG Resources will become a diversified energy company, driven by value growth to stakeholders, through a portfolio of successful businesses.'"

Marquardt continued, "For 150 years, CTG has been providing our customers with natural gas services. That commitment continues. The vision includes a statement which reads, 'CTG Resources will maintain and grow our natural gas operations by providing safe, reliable, least-cost natural gas service.' For several years, we have posted the lowest commodity cost for our gas of any gas company in Connecticut and among the lowest in New England. A focused marketing plan is under development to help CNG, our regulated gas company, expand load on our existing mains and grow into new areas."

The vision also states, "CTG will focus unregulated investments on physical assets, leveraging our energy services to meet the needs of customers and the market."

Marquardt said, "One of the clear strengths of our company has always been the success of our regulated and unregulated physical assets, our safe and reliable distribution system and our district heating and cooling operations. We want to build on those strengths through carefully chosen additions to these operations."

CTG is working with Hartford Hospital, the Institute of Living, the SINA neighborhood revitalization project and Trinity College with a goal of expanding district heating and cooling services into that area of Hartford.

"Other physical asset opportunities could include additional investment in the Iroquois Pipeline or other pipelines, partnerships with merchant electric or cogeneration plants or investments in energy-related products," according to Marquardt.

Marquardt said, "As part of the process of developing the vision, it was clear that changes in the organizational structure were necessary to carry out the process. The company's regulated gas operations, Connecticut Natural Gas Corp. (CNG), and unregulated subsidiary, The Energy Network are now organized under an umbrella holding company, CTG Resources Inc."

"With this vision and new strategic direction, CTG is positioned to meet the competition in a deregulated environment, continue to find ways to better serve our customers and achieve significant growth," Marquardt concluded.

CTG Resources Inc. is the holding company of Connecticut Natural Gas Corp. and its unregulated subsidiary, The Energy Network. CTG is the largest transporter of natural gas in Connecticut and is engaged in a number of energy-related business under The Energy Network. CTG's home page on the Internet is www.ctgcorp.com .

CONTACT: Connecticut Natural Gas Corp.

Mary M. Hart, 860-727-3155