David W. Stevens Appointed to Lead Southern Union's Panhandle Energy Subsidiary.

Business Editors

WILKES-BARRE, Pa.--(BUSINESS WIRE)--July 29, 2003

Southern Union Company ("Southern Union" or the "Company") (NYSE:SUG) announced today the appointment of David W. Stevens to President and Chief Operating Officer of its Houston-based Panhandle Energy ("Panhandle") subsidiary.

Thomas F. Karam, Southern Union President and Chief Operating Officer, stated "David has a successful track record as an industry leader and we expect that his expertise will work to benefit our shareholders, customers and employees. We are very confident in his ability to lead the excellent management team at Panhandle Energy."

Mr. Stevens most recently served as Executive Vice President - Utility Operations for Southern Union and President and Chief Operating Officer of Energy Worx, Inc., a former pipeline management subsidiary of the Company. From 1998 until its January 2003 sale, Mr. Stevens also served as President and Chief Operating Officer of Southern Union Gas Company - a former Texas-based operating division of the Company. He was named to that position at age 38 and was the youngest operating division president in the Company's history. Mr. Stevens joined Southern Union in 1984 and served in a variety of operational positions including Group Vice President, Regional Vice President and Senior Vice President.

A Registered Professional Engineer, Mr. Stevens earned a Bachelor of Science degree in chemical engineering from The University of Texas at Austin in 1982. He is active in a number of civic and industry organizations, including serving on the State Bar of Texas Board of Directors, the Austin Independent School District Public Education Foundation, and the Young Presidents' Organization. He previously served on the Board of Directors of the Greater Austin Chamber of Commerce, the Real Estate Council of Austin, and as a member of the University of Texas at Austin Chemical Engineering Advisory Board.

Southern Union Company, headquartered in Wilkes-Barre, Pennsylvania, is engaged primarily in the transportation and distribution of natural gas. Through its Panhandle Energy subsidiary, the Company owns and operates Panhandle Eastern Pipe Line Company, Trunkline Gas Company, Sea Robin Pipeline, Trunkline LNG and Southwest Gas Storage Company. Collectively, the pipeline assets operate more than 10,000 miles of interstate pipelines that transport natural gas from the Gulf of Mexico, South Texas and the Panhandle regions of Texas and Oklahoma to major U.S. markets in the Midwest and Great Lakes region. Trunkline LNG, located on Louisiana's Gulf Coast, is the nation's largest liquefied natural gas import terminal. Through its local distribution companies, Missouri Gas Energy, PG Energy and New England Gas Company, Southern Union also serves nearly one million natural gas end user customers in Missouri, Pennsylvania, Massachusetts and Rhode Island. For further information, visit www.southernunionco.com.

This release and other Company reports and statements issued or made from time to time contain certain "forward-looking statements" concerning projected future financial performance, expected plans or future operations. Southern Union Company cautions that actual results and developments may differ materially from such projections or expectations.

Important factors could cause actual results to differ materially from the forward-looking projections or expectations. These factors include, but are not limited to: weather conditions or weather-related damage in the Company's service territories; technological developments in energy production, delivery and usage; cost of gas or availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or gas pipeline system constraints; regulatory and court decisions; the receipt of timely and adequate rate relief; the achievement of efficiencies and the purchase and implementation of new technologies for attaining such efficiencies; disruptions in the normal commercial insurance and surety bond markets that may increase costs or reduce traditional insurance coverage; impact of relations with labor unions of bargaining unit employees; the effect of any stock repurchases; and the effect of strategic initiatives (including any recent, pending or potential acquisition or merger, recent corporate restructuring activities, sales of non-core assets, and any related financing arrangements including refinancings and debt repurchases) on earnings and cash flow.