Cinergy and Vectren Affiliate to Acquire Miller Pipeline Corp. from NiSource.

Business Editors

REPEATING...

CINCINNATI & EVANSVILLE, Ind.--(BUSINESS WIRE)--Oct. 31, 2000

Reliant Services, LLC, jointly and equally owned by subsidiaries of Cinergy Corp.(NYSE:CIN) and Vectren Corporation (NYSE:VVC) announced it has signed a definitive agreement to purchase the common stock of Indianapolis-based Miller Pipeline Corporation from NiSource Inc. (NYSE:NI) for approximately $68.3 million.

Miller Pipeline is one of the nation's premier natural gas distribution contractors with nearly 50 years of experience in the construction industry.

The acquisition will expand Reliant's utility services business by adding underground pipeline construction, replacement and repair to its current services of underground facility locating, contract meter reading and installation of telecommunications and electric facilities.

"With their experience in underground pipeline construction, including natural gas, water and wastewater, Miller is strategically positioned to be a key player in the replacement of the region's aging infrastructure," said James E. Rogers, vice chairman, president and chief executive officer of Cinergy. "In addition, Miller's growth will also come from general demand for new infrastructure due to suburban growth and the increasing demand of utilities for contractors with a large regional presence. This acquisition is a great opportunity and together, Miller Pipeline and Reliant are also well positioned to continue expansion into fiber optic and electric aerial installation."

"This is a logical step in our strategy for growth. It both complements our core business and strengthens our ability to manage costs," said Niel C. Ellerbrook, Vectren's Chairman and Chief Executive Officer. "Miller Pipeline and its strong management team have grown revenues on average by 13% over the last 3 years to nearly $73 million in 1999. We anticipate the acquisition will be slightly accretive to earnings for Vectren in its first year of operation."

NiSource, based in Merrillville, Ind., stated that the sale of Miller Pipeline is consistent with the company's intent to divest businesses outside of its core business as part of its merger with Columbia Energy Group, which is expected to close Nov. 1, 2000.

The acquisition requires review by the United States Department of Justice under the Hart Scott Rodino Act and should be completed by the end of 2000.

More About Reliant Services

Reliant was formed in August 1998 and is owned as a joint venture between Cinergy and Vectren. Reliant currently provides utility-related services such as underground facility locating, contract meter reading services and electric and telecommunications installation services throughout the Midwest region. For more information about Reliant visit www.Reliant-Services.com.

More About Miller Pipeline

Miller Pipeline was founded in 1953 (as a predecessor company) and has grown to include three divisions with approximately 110 construction crews. Miller Pipeline performs natural gas and water distribution and transmission construction, repair and rehabilitation primarily in the Midwest region and the repair and rehabilitation of gas, water and waste water facilities nationwide. For more information about Miller Pipeline visit http://www.Millerpipeline.com

More about Cinergy

Cinergy Corp. is one of the nation's leading diversified energy companies, with a total enterprise value of $8.5 billion and assets of $10 billion. Cinergy owns or operates nearly 20,000 megawatts of electrical and combined heat plant generation that is either operational or under development domestically and internationally. It also has 55,000 miles of electric and gas transmission lines in the United States and abroad and approximately 9,000 employees in nine countries. Its largest operating companies, The Cincinnati Gas & Electric Company and PSI Energy, Inc., serve more than 1.4 million electric customers and 478,000 gas customers in Indiana, Ohio and Kentucky. In addition to its U.S. operations, Cinergy owns and operates power generation, transmission and distribution assets in the Czech Republic, Spain, the United Kingdom, Zambia, Kenya, South Africa and Estonia. Cinergy is also active in European gas and electricity markets. Visit www.cinergy.com for more information on Cinergy.

More About Vectren

Vectren, headquartered in Evansville, Indiana, through its regulated subsidiaries Indiana Gas and SIGECO, offers gas and/or electricity to more than 650,000 customers in adjoining service areas that cover nearly two-thirds of Indiana. Vectren's non-regulated subsidiaries currently offer energy-related products and services, fiber-optic based communication services, and utility related services including materials management, debt collections, locating, meter reading and trenching services to customers throughout the surrounding region. In December 1999 (prior to its merger with SIGCORP, Inc. to form Vectren), Indiana Energy, Inc. announced the planned acquisition of the natural gas distribution business of Dayton Power and Light Company. This acquisition is expected to close before month end and bring Vectren's total customer count to nearly one million. To learn more about Vectren visit http://www.vectren.com.

This news release may contain forward-looking statements concerning our anticipation of future events that involve inherent risks and uncertainties. A number of important factors which are difficult to predict and many of which are beyond the control of the company could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements may be significantly impacted by certain risks and uncertainties, including, but not limited to, economic or weather conditions affecting future sales, changes in markets for energy services, changing energy market prices, legislative and regulatory changes, including revised environmental requirements, industry restructuring, availability and cost of capital and other similar factors.