Federal Trade Commission Approves Consent Order, Clearing Way for Close of CMS Panhandle Sale

WASHINGTON, D.C., May 29, 2003 - The Federal Trade Commission ("FTC") today announced its approval of a consent order with respect to Southern Union Company's (NYSE: SUG) proposed acquisition of the CMS Panhandle Companies from CMS Energy Corporation (NYSE: CMS). The FTC also granted Early Termination of the Hart-Scott-Rodino Act waiting period, thereby permitting Southern Union and CMS Energy to close the transaction. The FTC's actions remove the last regulatory obstacle to consummation of the transaction.

The sales agreement provides for CMS Energy to receive three million shares of Southern Union common stock and about $584 million in cash. About $1.166 billion of debt will be assumed by Southern Union in the transaction. CMS Energy will use the cash proceeds of the transaction and from the ultimate sale of the Southern Union common stock to accelerate debt reduction.

"Today's FTC approval clears the way for closing on the sale of our Panhandle assets, a key part of our back-to-basics strategy," said Ken Whipple, CMS Energy's chairman and chief executive officer.

Under FTC regulations, the consent order will be subject to a 30-day comment period, after which the Commission may propose modifications before the Order is made final. However, Southern Union and CMS Energy are not required to delay consummation of the transaction until after the end of the comment period.

The CMS Panhandle Companies include CMS Panhandle Eastern Pipe Line Company, CMS Trunkline Gas Company, CMS Trunkline LNG Company, which operates an LNG terminal complex at Lake Charles, La., and the CMS Sea Robin Pipeline Company.

CMS Energy is an integrated energy company, which has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, and independent power generation.

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Media Contacts: Jeff Holyfield, 313/436-9253, Dan Bishop, 517/788-2395, or John Barnett, 713/989-7556

Investment Analyst Contact: CMS Energy Investor Relations, 517/788-2590