Panhandle Energy Announces Promotions

HOUSTON, July 8, 2003 - Panhandle Energy ("Panhandle" or the "Company"), a Southern Union Company subsidiary, today announced the following promotions.

Robert O. Bond, 44, has been named Senior Vice President of Marketing. He will continue to be responsible for marketing operations, Trunkline LNG Company's expansion project and market development. Mr. Bond, most recently Vice President of Marketing for Panhandle Energy, joined the Company in February 2000 as Executive Director of Commercial Optimization. Previously he was Director of Business Development for Sonat Marketing Company. Before joining Sonat, from 1984 through 1998, he served as Managing Director for El Paso Energy and Tenneco Energy. Mr. Bond is a 1981 graduate of Texas A&M University, where he received a Bachelor of Science degree in economics.

Deborah T. Adams, 46, has been named Vice President of Information Systems with responsibilities for the management of Panhandle's information systems and the integration of those systems into Southern Union's. Ms. Adams, most recently General Manager of Information Systems, joined the Company in 1979 as a data base analyst and held various positions of increasing responsibility in the Information Systems department. She received a Bachelor of Arts degree in managerial studies from Rice University, Houston.

Andre C. "Butch" Bouchard, 37, has been named Vice President of Administration and General Counsel for Panhandle Energy with responsibilities for legal, human resources and public and community affairs. Mr. Bouchard, most recently Vice President of Legal and Assistant Secretary for Southern Union, joined Southern Union's legal department in 1994. Since then, he has also served as Vice President for Southern Union Energy International, Inc. and has headed a number of the company's Texas-based subsidiaries - Mercado Gas Services, Norteno Pipeline and Southern Transmission - before Southern Union's divestiture of those assets in January 2003. Mr. Bouchard earned a Bachelor of Business Administration degree in accounting from the University of Texas at Austin and received his Doctor of Law degree from the University of Texas School of Law.

Carrie S. Fowler, 44, has been named Director of Human Resources. Ms. Fowler, most recently Director of Human Resources Services, joined Panhandle's human resources department in 1976 and has since held several positions of increasing responsibility. Ms. Fowler attended Houston Community College and is an active volunteer in the community. She also served as the Company's 2002 United Way campaign chairperson. Ms. Fowler will report to Mr. Bouchard.

"Each of these individuals has a strong background in their respective area of responsibility. I am confident that under their leadership our Company will successfully move forward with our integration into Southern Union," said Jeryl Mohn, Interim President of Panhandle Energy.

Panhandle Energy, a Southern Union Company subsidiary, is comprised of Panhandle Eastern Pipe Line Company, Trunkline Gas Company, Trunkline LNG Company, Sea Robin Pipeline Company and Southwest Gas Storage Company. Panhandle Energy operates more than 10,000 miles of mainline natural gas pipeline extending from the Gulf of Mexico to the Midwest and Canada, which access the major natural gas supply regions of the Louisiana and Texas Gulf Coasts as well as the Midcontinent and Rocky Mountains. These pipelines have a combined peak day delivery capacity of 5.3 billion cubic feet per day, 88 billion cubic feet of underground storage facilities and 6.3 billion cubic feet of above ground liquid storage facilities.

Southern Union Company (NYSE:SUG) is engaged primarily in the transportation and distribution of natural gas. In addition to its Panhandle assets, through its local distribution companies, Southern Union also serves approximately one million natural gas end user customers in Missouri, Pennsylvania, Massachusetts and Rhode Island.

For more information on Panhandle Energy, please visit our website at: www.panhandleenergy.com

Media Contact: John Barnett, 713.989.7556