UGI Announces Debt Refinancing.

VALLEY FORGE, Pa. -- UGI Corporation (NYSE:UGI) today announced that AGZ Holding, parent company of Antargaz, its French liquefied petroleum gas distributor, has executed a new five-year, floating rate Senior Facilities Agreement with a major French bank providing for a EUR 380 million term loan and a EUR 50 million revolving credit facility. AGZ Finance then notified the holders of its EUR 165 million 10% Senior Notes due 2011 of its decision to redeem the Notes, including a premium, pursuant to the Trust Deed governing the Notes. The proceeds of the term loan were used, in part, to repay the existing EUR 175 million Senior Facility; the balance will be used to fund the redemption of the Notes in early January 2006, and for general corporate purposes.

Lon R. Greenberg, chairman and chief executive officer of UGI, said, "The refinancing of Antargaz debt will significantly reduce annual interest expense while maintaining a strong and flexible financial position." In addition, AGZ Holding has executed an interest rate swap agreement with the same bank to fix the rate of interest on the term loan for the duration of the loan. Annual interest expense after tax is expected to decline by approximately EUR 5 million. The refinancing is expected to result in a negligible loss on early extinguishment of debt in the second fiscal quarter.

UGI is a holding company with propane marketing, utility and energy marketing subsidiaries. Through subsidiaries, UGI owns 44% of AmeriGas Partners, L.P. (NYSE:APU), the nation's largest retail propane marketer, and owns Antargaz, one of the largest LPG distributors in France.

Comprehensive information about UGI Corporation is available on the Internet at http://www.ugicorp.com.

This press release contains certain forward-looking statements which management believes to be reasonable as of today's date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management's control. Among them are adverse weather conditions, price volatility and availability of all energy products, including propane, natural gas, electricity and fuel oil, increased customer conservation measures, domestic and international economic and political conditions and currency exchange rates. You should read UGI's Annual Report on Form 10-K for a more extensive list of factors that could affect results. UGI undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.