Indiana Energy presentation at New York Society of Security Analysts

Business Wire, May 22, 1997

NEW YORK--(BUSINESS WIRE)--May 22, 1997--The following is a summary of a presentation today (Thursday) at the New York Society of Security Analysts by management of Indiana Energy Inc.

Changes at Indiana Energy Inc.

designed to spur additional earnings growth

In a presentation before the New York Society of Security Analysts, management from Indiana Energy Inc., the holding company for Indiana Gas Co. Inc., outlined significant changes designed to increase earnings growth.

"We believe a 10 percent annual growth rate in earnings per share will be required to continue as an outstanding performer in the energy industry; that is the goal we will endeavor to achieve over the next five years," stated Chairman, President and Chief Executive Officer L.A. Ferger.

To accomplish this, Indiana Energy through its unregulated, wholly owned subsidiary, IEI Investments Inc., will need to accelerate the growth of its energy related products, services and investments. Over the next five years unregulated earnings will need to contribute about 20 percent or more of total annual earnings. To accomplish this, ProLiance Energy, LLC, a joint venture between Indiana Energy and Citizens Gas and Coke Utility in Indianapolis, will expand its customer base and its array of products and services to include power marketing. In addition to the growth of ProLiance, Indiana Energy will create, acquire or ally with unregulated businesses as new and existing markets present opportunities.

Another important change at Indiana Energy will be the formation of a shared services business unit. "The business reasons for this strategy are very compelling," said Ferger. "As the marketplace presents opportunities, a shared services company will allow us to respond in a more timely and cost efficient manner. Several Indiana Energy companies, including Indiana Gas will use this shared services company thereby avoiding duplication of services." These services will be expected to meet certain cost and quality levels. Lower value added activities will be minimized or eliminated.

With the yet to be named shared services company and aggressive cost control, Indiana Gas will seek to grow earnings contributions by a combined average of about 5 percent.

"Our shareholders have grown accustomed to a return which ranks us near the top among our peers. Changes which are occurring in the energy industry will require us to grow earnings more rapidly to meet shareholder expectations," said Niel C. Ellerbrook, executive vice president, treasurer and chief financial officer of Indiana Energy. "These growth targets represent a significant increase over our historical results, and while aggressive, we believe they are achievable."

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CONTACT: Indiana Energy Inc., Indianapolis

Jeffery W. Whiteside, 317/321-0588

Facsimile: 317/921-2767

jwhiteside@indiana-energy.com