NUI Corporation Creates Strategic Alliance Through Transfer of Pennsylvania and New York Divisions to C&T Enterprises, Inc.

Business Editors

BEDMINSTER, N.J.--(BUSINESS WIRE)--October. 5, 2000

NUI Corporation (NYSE:NUI) today announced it has created a new strategic alliance through its agreement to transfer the operations of NUI Valley Cities Gas/Waverly Gas (VCW) to C&T Enterprises, Inc. (C&T) of Pennsylvania. Under the agreement, C&T will assume the assets of VCW's distribution operations.

Simultaneously with this agreement, the parties have entered into a Letter of Intent for NUI to provide certain management and support services, including gas supply management and gas control dispatching, engineering, billing and telecommunication services to C&T.

Under the agreement, C&T will pay $15 million for the assets and customers of VCW. C&T has also agreed to pay an additional $3 million if certain revenue targets are achieved. The transaction will close after all regulatory approvals have been obtained from the New Jersey, New York and Pennsylvania regulatory commissions.

"Joining our Valley Cities and Waverly division with C&T is a great fit for both that operation and its employees," said John Kean, Jr., NUI president and CEO. "Furthermore, this transaction supports our strategy for expanding NUI's business services and energy management groups. We are looking forward to working with C&T to make this transaction a success and identify ways that we can further support its existing operations and growth plans."

"VCW's operations are solid and the division has a highly dedicated group of employees," said John McNamara, Chairman of C&T Enterprises. "We recognize the value of the employees, all of whom will become employees of C&T upon closing of the transaction. C&T is a company that cares about its employees, has strong roots in the community and shares NUI's commitment to customer service."

Valley Cities Gas and Waverly Gas provide natural gas and appliance repair service to about 6,300 customers in the Sayre, PA area, including Athens and Towanda, and Waverly, NY. Daily operation of the division will continue unchanged during the transition and Valley Cities Gas and Waverly Gas customers will see no discernable change in their service.

NUI Corporation, based in Bedminster, NJ, operates natural gas utilities serving more than 370,000 customers in six states along the eastern seaboard. NUI also operates businesses involved in wholesale energy trading and portfolio management; retail energy sales; energy and environmental project development; energy consulting; sales outsourcing; telecommunications; and geospatial and customer information systems and services.

C&T Enterprises, Inc. is a wholly owned, for-profit subsidiary of Tri-County Rural Electric Cooperative and Claverack Rural Electric Cooperative. It was formed in 1998 to facilitate the Co-op's diversification activities, in accordance with Pennsylvania utility laws. The group of utilities affiliated with C&T Enterprises serves approximately 50,000 electric and fuel oil customers in the northern tier of the state.