Sandell Asset Management Corp. Announces Successful Resolution of Lawsuit Against Southern Union Company (NYSE: SUG) Southern Union Amends Contested Bylaw and Acknowledges Timely Submission

and Compliance of Nomination of Director Candidates



    NEW YORK, Jan. 16 /PRNewswire/ -- Sandell Asset Management Corp.
 announced today that Southern Union Company, in addition to amending its
 bylaws in response to Sandell's allegations of invalidity and stockholder
 disenfranchisement, has agreed in the Delaware Court of Chancery that
 certain provisions of its bylaws cannot be used to challenge the timing or
 form of nominations submitted by Castlerigg Master Investments Ltd., an
 investment fund affiliated with Sandell.
     As a result of Southern Union's agreement, Castlerigg agreed to
 voluntarily dismiss its pending lawsuit. This successfully resolves the
 litigation that Castlerigg filed on December 5, 2006 in the Delaware Court
 of Chancery in which it charged, among other things, that the director
 nomination provision of Southern Union's bylaws is an unlawful entrenchment
 device that purports to strip stockholders of their right under Delaware
 law to nominate director candidates by providing that candidates must be
 approved by a committee of incumbent directors.
     "While we certainly would have preferred not to have to go to court to
 preserve and enforce our rights as stockholders, we could not be more
 pleased with the result. We view this as an important victory for
 stockholders against a company with poor corporate governance," said Thomas
 E. Sandell, founder, principal and Chief Executive Officer of Sandell Asset
 Management Corp. "We look forward to presenting our slate of highly
 qualified independent nominees to Southern Union's stockholders at the 2007
 annual meeting."
     About Sandell Asset Management Corp.
     Sandell Asset Management Corp. is a multi-billion dollar global
 investment management firm, founded by Thomas E. Sandell, that focuses on
 global corporate events and restructurings throughout North America,
 Continental Europe, the United Kingdom, Latin America and the Asia-Pacific
 theatres. Sandell frequently will take an "active involvement" in
 facilitating financial or organizational improvements accruing to the
 benefit of investors.
     STOCKHOLDERS OF SOUTHERN UNION COMPANY ARE ADVISED TO READ THE PROXY
 STATEMENT AND OTHER DOCUMENTS RELATED TO THE SOLICITATION OF PROXIES BY
 SANDELL ASSET MANAGEMENT CORP. AND CERTAIN OF ITS AFFILIATES AND NOMINEES
 (COLLECTIVELY, THE "PARTICIPANTS") FROM SUCH STOCKHOLDERS FOR USE AT THE
 2007 ANNUAL MEETING OF STOCKHOLDERS OF SOUTHERN UNION COMPANY WHEN AND IF
 THEY ARE AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. WHEN
 AND IF COMPLETED, A DEFINITIVE PROXY STATEMENT AND FORM OF PROXY WILL BE
 MAILED TO STOCKHOLDERS OF SOUTHERN UNION COMPANY AND WILL, ALONG WITH OTHER
 RELEVANT DOCUMENTS, BE AVAILABLE AT NO CHARGE AT THE SECURITIES AND
 EXCHANGE COMMISSION'S WEBSITE AT HTTP://WWW.SEC.GOV OR BY CONTACTING
 MACKENZIE PARTNERS, INC. BY TELEPHONE AT 800-322-2885 OR BY E-MAIL AT
 SAVESUG@MACKENZIEPARTNERS.COM. INFORMATION RELATING TO THE PARTICIPANTS IS
 CONTAINED IN EXHIBIT 2 TO THE SCHEDULE 14A FILED BY THE PARTICIPANTS WITH
 THE SECURITIES AND EXCHANGE COMMISSION ON JANUARY 16, 2007.
 
 

SOURCE Sandell Asset Management Corp.

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