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SALE AGREEMENT REACHED FOR MISSOURI OPERATIONS

 TOPEKA, Kan., July 9 /PRNewswire/ -- Western Resources, Inc., (NYSE: WR) announced it has reached a definitive agreement to sell its Missouri natural gas properties and operations to Southern Union Company (AMEX: SUG) for approximately $360 million, to be adjusted at the time of closing.
 The properties sold to Southern Union serve approximately 460,000 Missouri customers including those in Kansas City, Joplin, and St. Joseph. As announced on June 22, 1993, negotiations are on-going with ONEOK Inc. for the gas-only properties in eastern Kansas and Oklahoma.
 "We are pleased to enter into this transaction with Southern Union, a company that has a demonstrated track record of interest in its customers and employees as well as its owners," said John E. Hayes, Jr., Western Resources chairman of the board, president, and chief executive officer.
 "Southern Union believes that this transaction will benefit the shareholders of the company and the gas customers of Missouri. The company is committed to providing low cost service to its customers and to promoting natural gas in the communities we serve," said George L. Lindemann, chairman, Southern Union Company.
 Before the sale is consummated, approvals must be secured from the Missouri Public Service Commission and other regulatory agencies. Full details of the transaction will be included in the filings with the regulatory agencies.
 "While the regulatory process necessarily is extensive, because Southern Union has a proven record of safely and efficiently providing natural gas service in Texas and Oklahoma, we believe the merits of this transaction will be apparent," said Hayes. "Southern Union's agreement respects our commitments to customers, employees, and regulatory agencies."
 When the sale is consummated, the Missouri operations of Southern Union will be headquartered in Kansas City, Mo.
 Western Resources, through its operating companies KPL, KG&E, and Gas Service, provides natural gas service to approximately 1,083,000 customers in Kansas, western Missouri, and northern Oklahoma, and electric service to approximately 578,000 customers in eastern and central Kansas. Western Resources is headquartered in Topeka, Kan., and traded on the New York Stock Exchange under the symbol WR.
 Southern Union, through its Southern Union Gas Company utility division, provides natural gas service to approximately 428,000 customers in Texas and Oklahoma. It is headquartered in Austin, Texas and traded on the American Stock Exchange under the symbol SUG.
 Southern Union plans to fund the purchase price through a debt offering and a subscription rights offering of common stock to existing shareholders.
 -0- 7/9/93
 /CONTACT: Michel Quakenbush of Western Resources, Inc., 913-575-1927, or Sarah Russ of Southern Union Company, 512-404-7540/
 (WR SUG)


CO: Western Resources, Inc.; Southern Union Company ST: Kansas, Missouri IN: UTI SU:

LG-LR -- NY060 -- 0003 07/09/93 15:02 EDT
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Publication:PR Newswire
Date:Jul 9, 1993
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