Colonial Gas Company and Eastern Enterprises Announce Shareholder Approval of Merger.

LOWELL, Mass. and WESTON, Mass.--(BUSINESS WIRE)--Feb. 10, 1999--Colonial Gas Company (NYSE:CLG) announced today that its shareholders have approved a proposal to merge with Eastern Enterprises (NYSE:EFU), a Massachusetts business trust. On October 19, 1998, the two companies announced that they had entered into a definitive agreement which provides for the merger of Colonial into Eastern for $37.50 per share in Eastern stock and cash.

"We are pleased that our shareholders have voted to overwhelmingly support the proposal brought forth by our Board of Directors," said F. L. Putnam, Jr., Chairman of the Board and Senior Executive Officer. "This is the next step in our new partnership with Eastern -- a partnership that is designed to provide maximum long-term benefits to our shareholders, customers, and employees."

Over 77% of Colonial's shareholder base participated in the special shareholder meeting, with 97% of those shares voting in favor of the merger. Separately, the shareholders of Eastern Enterprises today approved the issuance of additional shares in connection with the merger. The merger is expected to close by mid-year, subject to the receipt of satisfactory regulatory approvals.

Colonial Gas Company is the fastest-growing, lowest-cost natural gas utility in New England. Formed as a Massachusetts corporation in 1849, Colonial distributes natural gas to over 150,000 residential and commercial customers in 24 communities located northwest of Boston and on Cape Cod. In addition, the Company is involved in several related business activities including the sales, rental, installation, service and financing of natural gas products for home heating, water heating, central air conditioning, and industrial applications. Colonial also owns and operates Transgas Inc., the world's largest over-the-road transporter of liquefied natural gas.

Eastern Enterprises owns and operates Boston Gas Company, Essex Gas Company, Midland Enterprises Inc. and ServicEdge Partners, Inc. Together, Boston Gas and Essex Gas are New England's largest distributor of natural gas, serving 580,000 residential, commercial and industrial customers in Boston and 90 other eastern and central Massachusetts communities. Midland Enterprises, headquartered in Cincinnati, Ohio, is the leading carrier of coal and a major carrier of other dry bulk cargoes on the nation's inland waterways, with a fleet of 2,414 barges and 87 towboats. ServicEdge is the largest unregulated provider of residential HVAC equipment installation and service to customers in Massachusetts.