Company advances liquidity strategy; estimates long-term financing requirements to be covered through 2011

MERRILLVILLE, Ind., Dec. 4 /PRNewswire-FirstCall/ -- NiSource Inc. (NYSE: NI) today announced that its finance subsidiary, NiSource Finance Corp., has issued $500 million of senior unsecured notes in an underwritten offering. Payments on the notes are guaranteed by NiSource Inc.

NiSource will use the proceeds of the issuance to complete the refinancing of outstanding long-term debt scheduled to mature in 2010 and 2011.

The notes mature on March 1, 2022 and carry a coupon rate of 6.125 percent. The lead underwriters involved in the issuance were Credit Suisse, Morgan Stanley and UBS Investment Bank.

"Over the past two years we've made great progress on the execution of the Company's financing and liquidity plan," said NiSource President & CEO Robert C. Skaggs Jr. "This issuance takes advantage of favorable market conditions and is expected to fully address NiSource's long-term financing requirements through 2011."

The Company continues to maintain its $1.5 billion revolving credit facility that extends to July 2011.

About NiSource

NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.7 million customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Information about NiSource and its subsidiaries is available via the Internet at www.nisource.com. NI-F

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements include statements regarding the intent, belief or current expectations of NiSource and its management. Although NiSource believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Readers are cautioned that the forward-looking statements in this presentation are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those indicated by such forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, the following: weather; fluctuations in supply and demand for energy commodities; growth opportunities for NiSource's businesses; increased competition in deregulated energy markets; the success of regulatory and commercial initiatives; dealings with third parties over whom NiSource has no control; the success of NiSource's restructuring of its outsourcing agreement; actual operating experience of NiSource assets; the regulatory process; regulatory and legislative changes; the impact of potential new environmental laws or regulations; the results of material litigation; changes in pension funding requirements; changes in general economic, capital and commodity market conditions; and counter-party credit risk, many of which are beyond the control of NiSource. In addition, the relative contributions to profitability by each segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time. NiSource expressly disclaims a duty to update any of the forward-looking statements contained in this release.

SOURCE NiSource Inc.

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