Proliance Energy set to enter market.

INDIANAPOLIS--(BUSINESS WIRE)--March 18, 1996--Proliance Energy, LLC will begin operation April 1.

Proliance Energy is the new, jointly owned company formed by affiliates of Indiana Gas Company and Citizens Gas & Coke Utility to provide natural gas supply and related marketing services.

Definitive agreements were signed Friday, March 15.

Proliance Energy will provide gas supply and portfolio administration for Indiana Gas and Citizens Gas and their 720,000 customers. In addition, Proliance Energy will provide gas sales, administration and marketing services to customers currently served by IES, Indiana Energy's gas marketing affiliate, and CESCO, a gas marketing subsidiary of Citizens Gas.

"Proliance Energy will provide benefits to the utilities and customers that couldn't be achieved by either utility on its own," said Carl Chapman, president of Proliance Energy. "We'll be the largest customer on both the Panhandle Eastern Pipe Line Company and Texas Gas Transmission Corporation systems. Providing reliable energy solutions at competitive prices has become increasingly important as the gas industry continues to evolve, and we hope to hold down costs and maintain competitive prices through the benefits of combined purchasing."

Chapman added, "Not only will we offer Indiana Gas, Citizens Gas and customers of their gas marketing affiliates high-quality, competitively priced products and services, but we'll aggressively market our expertise and services to other utilities and customers who buy or use natural gas. The name Proliance Energy, reflects the expertise brought together in this strategic alliance of two successful gas companies, Indiana Gas and Citizens Gas & Coke Utility."

The affiliates of Indiana Gas and Citizens Gas have equal ownership in Proliance Energy. A governing board of directors consists of four representatives each from Indiana Gas' parent company, Indiana Energy, and Citizens Gas. Proliance Energy's management team, in addition to Chapman, includes: Vice President of Supply John Talley; Vice President of Marketing Terry Peak; and Treasurer/Controller Jackie Groth. A staff of approximately 18 other employees, who have been involved with gas supply and sales activities for the two companies or their marketing affiliates, IES and CESCO, has also been named.

Proliance Energy will move into its own offices soon. For more information about products and services, contact Vice President of Marketing Terry Peak at 317/927-6023.

Indiana Gas currently provides natural gas and related services to about 470,000 residential, commercial and industrial customers in 49 of Indiana's 92 counties. Citizens Gas serves about 250,000 customers in Indianapolis.

CONTACT: Indiana Energy Inc., Indianapolis

Media: Julie Vincent, 317/321-0572

or

Investor Relations: Anthony Brown, 317/321-0512