Cumulative Preferred and Common Stock Dividends Declared.

PORT HURON, Mich.--(BUSINESS WIRE)--April 22, 1998--The Board of Directors has declared dividends on the outstanding stock of SEMCO ENERGY, Inc., (NASDAQ:SMGS) as follows:

Quarterly dividend No. 78 of $.578125 per share on the outstanding $2.3125, Series A, Convertible Cumulative Preferred Stock of this Corporation.

Quarterly dividend No. 83 of $.20 per share on the Common stock of this Corporation.

Stock dividend of 5% on the Common stock of this Corporation.

All dividends are payable on the 15th day of May 1998, to shareholders of record at the close of business on May 5, 1998.

SEMCO ENERGY is an energy-focused holding company. It has three subsidiaries: 1) SEMCO ENERGY GAS COMPANY distributes regulated natural gas to 240,000 customers in Michigan's Upper and Lower Peninsula; 2) SEMCO ENERGY SERVICES markets gas throughout the United States; and 3) SEMCO ENERGY VENTURES operates and acquires companies involved in natural gas construction, energy engineering and propane operations.

CONTACT: SEMCO ENERGY, Inc.

Edric R. Mason Jr., 810/987-4104

Fax: [phone]