AGL Resources Inc. Reports Year-To-Date Increase In Earnings

ATLANTA, GEORGIA, August 1, 1997 - AGL Resources Inc. (NYSE: ATG) today reported that for the nine months ended June 30, 1997, the company posted higher results in both net income and earnings per share from the comparable period a year ago. Consolidated net income rose $2.3 million, or 3 percent, to $80 million. Earnings per share increased 2 cents to $1.43, or 1.4 percent.

In addition, the company reported that year-to-date operating revenues advanced 3.8 percent, compared with the same period in 1996, rising to $1.09 billion, up from $1.05 billion a year ago.

The company said its higher year-to-date earnings primarily were due to increased revenues from customer growth and lower operating expenses from its natural gas distribution business.

"Our results from the first nine months put us on track for record earnings during fiscal 1997," said David R. Jones, president and chief executive officer of AGL Resources. "I'm pleased to see that our natural gas distribution operations continue to provide a solid financial base - while we invest in nonregulated businesses and take advantage of new opportunities in a more competitive, deregulated energy industry."

For the three months ended June 30, 1997, the company's consolidated net income was $1.4 million and earnings per share were 3 cents. Both numbers were down from the same period of the prior year when the company posted net income of $3.6 million and earnings per share of 6 cents. The company indicated that no single factor caused the third quarter decreases. Rather, a slight decline in operating margin, combined with a modest rise in operating expenses and increased interest expense, caused the quarterly earnings decline.

Because of the seasonal nature of its business, third and fourth quarter earnings typically are marginal and do not significantly affect the company's annual operating results.

Quarterly Dividend Declared
The company's board of directors today declared a quarterly dividend on its common stock of 27 cents per share. Payment will be made on September 1, 1997, to shareholders of record on August 15, 1997.

The dividend, which remains unchanged from the previous quarter, equates to $1.08 per share on an annualized basis. The September dividend will be the 199th consecutive dividend paid.

Other Business
The board of directors also named Thomas H. Benson president and chief operating officer of Atlanta Gas Light Company and Robert L. Goocher president and chief operating officer of AGL Resources Service Company. Both will retain their current responsibilities as executive vice presidents of AGL Resources.

AGL Resources Inc. is the holding company of Atlanta Gas Light, the largest natural gas distribution company in the Southeast, serving more than 1.4 million customers in Georgia and, through Chattanooga Gas Company, in southern Tennessee. Although natural gas distribution is AGL Resources' core business, it also is engaged in other energy-related businesses, including natural gas and power marketing, wholesale and retail propane sales, energy management services, and energy-related consumer products.

The company's home page address on the Internet is www.aglr.com.