Vectren Corporation to Invest an Additional $20 Million in Haddington Energy.

Business Editors

EVANSVILLE, Ind.--(BUSINESS WIRE)--July 28, 2000

Vectren Enterprises, Inc., a wholly owned non-regulated ventures subsidiary of Vectren Corporation (NYSE:VVC), has announced a commitment to invest an additional $20 million in Haddington Energy Partners, L.P. Haddington, a Delaware limited partnership, is expected to raise $150 million of committed capital for its Fund II. Haddington Fund I invested $77 million in six projects that represent a portfolio of development opportunities, including high deliverability natural gas storage, natural gas gathering, co-generation, hydrogen generators, and compressed air energy storage. Vectren's commitment to Haddington Fund I, which closed in October 1998, was $10 million. Haddington's second fund will provide additional capital for the Fund I portfolio companies as well as make investments in new areas, such as distributed generation, power backup and quality devices, and emerging technologies such as fuel cells, microturbines and photovoltaics.

Also committing to Fund II is Chase Capital Partners (CCP), one of the pre-eminent private equity funds on Wall Street. CCP was also the lead investor in Fund I.

The general partner, Haddington Ventures, LLC, is owned by Larry Bickle, Chris Jones, and John Strom who were the senior managers responsible for founding and developing TPC Corporation (previously Tejas Power). Haddington investment opportunities will continue to focus on acquiring and building on projects in progress rather than start-up ventures. An Investment Committee, comprised of the General Partner principals and Limited Partner representatives, have pooled their considerable energy industry experience to evaluate and recommend potential investments for the partnership. Vectren Enterprises retains a seat on the Investment Committee.

"Our decision to invest additional funds in Haddington Energy is based on the success of its owners in establishing a solid portfolio of energy companies in Fund I and the belief that Fund II will find profitable opportunities in new areas of energy investments," said Niel Ellerbrook, Chairman and CEO of Vectren Corporation. "Additionally, through our active participation on the Haddington Investment Committee, we will closely monitor exciting technology developments and look for opportunities to utilize them in our core businesses."

Vectren, headquartered in Evansville, Indiana through its regulated subsidiaries Indiana Gas and SIGECO, offers gas and/or electricity to more than 650,000 customers in adjoining service areas that cover nearly two-thirds of Indiana. Vectren's non-regulated subsidiaries currently offer energy-related products and services, fiber-optic based communication services and essential utility-related services to customers throughout the surrounding region. In December 1999 (prior to its merger with SIGCORP, Inc. to form Vectren), Indiana Energy, Inc. announced the planned acquisition of the natural gas distribution business of Dayton Power and Light Company. This acquisition is expected to close during the third quarter of this year and bring Vectren's total customer count to one million. To learn more about Vectren visit http://www.vectren.com.

This press release may contain forward-looking statements. Vectren wishes to caution readers that actual results could differ materially from those that will be projected in our discussions. Additional detailed information concerning a number of factors that could cause actual results to differ materially from the information that is provided to you is readily available in our report Form 8K filed with the Securities and Exchange Commission on July 11, 2000.