AGL Resources Closes on Aquisition of Virginia Natural Gas:

October 6, 2000

AGL becomes 2nd largest natural gas-only distributor in the U.S.

ATLANTA, October 6, 2000 -- AGL Resources Inc. (NYSE: ATG) today closed on its acquisition of Virginia Natural Gas, more than two months ahead of schedule and prior to the start of the winter heating season. The Securities and Exchange Commission has granted its final approval of the $533 million transaction.

“The acquisition of Virginia Natural Gas represents an important milestone for AGL Resources to extend our capabilities into a promising new market,” said AGL Resources CEO and President, Paula G. Rosput. “Our new customers in Virginia can expect a continuation of excellent customer service under the new ownership. We remain committed to our customers, employees and the community in the Hampton Roads area of Virginia.”

AGL Resources successfully bid for Virginia Natural Gas and announced the acquisition on May 8, 2000.

Henry P. (Hank) Linginfelter, a 17-year veteran of Atlanta Gas Light Company, will be the new president of Virginia Natural Gas. His appointment becomes effective today. Linginfelter held a number of senior level management positions during his tenure with Atlanta Gas Light, including his most recent position as vice president of regulatory affairs.

“Hank has a solid background in serving customers and also is very experienced in managing cooperative and productive relationships with government officials and civic leaders that are so important to our business,” added Rosput. “I am confident that Hank will continue the commitment to service that VNG has had in Virginia and will ensure that the integration of this acquisition continues to add value to shareholders and customers.”

With the addition of Virginia Natural Gas’ customer base of approximately 230,000, AGL Resources is now the second-largest natural gas-only distributor in the U.S, serving nearly 1.8 million customers. Virginia Natural Gas is headquartered in Norfolk, Virginia, and serves customers in the Hampton Roads region of southeastern Virginia. The utility was divested by Richmond-based Dominion (NYSE: D) as a condition for its acquisition this year of Pittsburgh-based Consolidated Natural Gas Company.

AGL Resources Inc. is a regional energy holding company with operations in the Southeast. Atlanta Gas Light Company, the company’s primary subsidiary, provides delivery service to more than 1.5 million customers in Georgia. Chattanooga Gas Company, another subsidiary of AGL Resources, provides full natural gas service to customers in the Chattanooga and Cleveland areas of Tennessee. Although natural gas distribution is AGL Resources’ core business, it also is engaged in other energy-related businesses, including retail energy marketing, customer care services for energy marketers, and wholesale and retail propane sales. Additional information about AGL Resources can be found online. The company’s Internet address is www.aglresources.com

This press release contains forward-looking statements. AGL Resources wishes to caution readers that the assumptions, which form the basis for the forward-looking statements, include many factors that are beyond AGL Resources’ ability to control or estimate precisely. Those factors include, but are not limited to, the following: changes in estimated transaction and transition costs; changes in the price and demand for natural gas; the impact of changes in state and federal legislation and regulation on the company and the natural gas industry; the effects of competition, particularly in markets where prices and providers historically have been regulated; financial market conditions; and other risks described in our documents on file with the Securities and Exchange Commission.