Essex County Gas Shareholders Approve Merger With Eastern Enterprises.

AMESBURY/WESTON, Mass.--(BUSINESS WIRE)--June 24, 1998--Essex County Gas Company (NASDAQ:ECGC) announced today that shareholders overwhelmingly approved the Agreement and Plan of Merger dated December 19, 1997 with Eastern Enterprises (NYSE:EFU).

Philip H. Reardon, President and Chief Executive Officer of Essex County Gas commented, "Our shareholders have strongly endorsed our Board's conclusion that a merger with Eastern Enterprises strengthens Essex County Gas' ability to grow and service customers going forward in this increasingly competitive energy marketplace." Eastern's Chairman and Chief Executive Officer, J. Atwood Ives, added, "We are excited about the growth opportunities for natural gas in Essex County. We look forward to providing continued quality service to customers in the area, as well as building additional value for Essex County Gas' shareholders."

The Massachusetts Department on Telecommunications and Energy (MDTE) is in the process of reviewing the terms of the merger agreement, together with the proposed rate plan which calls for an immediate 5% reduction in rates for Essex County Gas customers followed by a ten-year base rate freeze. The MDTE is expected to issue its decision later this year.

Eastern Enterprises owns and operates Boston Gas Company, New England's largest distributor of natural gas, serving 530,000 residential, commercial and industrial customers in Boston and 73 other eastern and central Massachusetts communities, and Midland Enterprises Inc., the leading carrier of coal and a major carrier of other dry bulk cargoes on the nation's inland waterways, with a fleet of 2,348 barges and 87 towboats. Headquartered in Cincinnati, Ohio, Midland provides low-cost marine transportation to many of the country's major industrial and agricultural regions. ServicEdge Partners, Inc., a new subsidiary of Eastern, provides HVAC equipment installation and service to customers in eastern Massachusetts. Essex County Gas Company distributes natural gas to over 43,000 customers in northeastern Massachusetts.

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. Eastern cautions that actual results and developments may differ materially from such projections or expectations.

Investors should be aware of important factors that could cause actual results to differ materially from the forward-looking projections or expectations. These factors include, but are not limited to: -0-

     --the effect of strategic initiatives on earnings and cash flow,
     --temperatures above or below normal in Boston Gas Company's
       service area,
     --changes in market conditions for barge transportation,
     --adverse weather and operating conditions on the inland
       waterways,
     --uncertainties regarding the start-up of ServicEdge, including
       expense levels and customer acceptance,
     --changes in economic conditions, including interest rates and
       the value of the dollar versus other currencies,
     --regulatory and court decisions, and
     --developments with respect to Eastern's previously-disclosed
       environmental and Coal Act liabilities.

-0-

Most of these factors are difficult to accurately predict and are generally beyond the control of the Company.

Eastern Enterprises' press releases are available via fax by calling, toll-free, 1-800-311-4607 or on the Internet at Eastern's Home Page on the World Wide Web: http://www.efu.com

CONTACT: Eastern Enterprises

Jane W. McCahon, 781/647-2316