NiSource Mails Annual Report and Proxy Materials to Stockholders

--'Commitment' is focus of annual report message to stockholders

MERRILLVILLE, Ind., April 3, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- NiSource Inc. (NYSE: NI) today announced that the company's 2008 annual report and proxy materials are now being mailed to all stockholders and are available on the company's Web site.

NiSource also announced that its 2009 Annual Meeting of Stockholders will be conducted at 10 a.m. (Eastern Time) on May 12 at the Westin Hotel in Columbus, Ohio. Stockholders of record as of March 17, 2009, are eligible to vote on matters to come before the meeting, either in person or by proxy. Complete instructions for voting and for registering to attend the meeting are contained in the proxy materials.

Delivering on Commitments

NiSource's 2008 annual report highlights key 2008 accomplishments, as well as recent actions the company has taken to address near-term challenges while continuing to meet its core commitments to stakeholders. Key commitments listed in the report include:

--  Providing safe, reliable service for customers
    --  Executing on NiSource's balanced business plan
    --  Maintaining investment-grade credit ratings and the company's
        dividend
    --  Generating long-term, investment-driven earnings growth
    --  Communicating in a transparent and timely manner

In a message to stockholders, NiSource President and CEO Robert C. Skaggs Jr. emphasized that the company's management team and Board of Directors have taken steps to preserve these core elements of NiSource's business strategy while maintaining financial flexibility and adequate liquidity.

"Going forward, we remain strongly committed to maintaining a solid financial foundation and to delivering on our fundamental promise of growing NiSource by investing in our infrastructure and coupling that investment with effective regulatory and commercial actions," Skaggs said. "Today - more than ever - I am convinced we will deliver on our commitments to enhance shareholder value, deliver long-term earnings growth and become North America's premier regulated energy company."

Note to media: News media interested in attending NiSource's Annual Meeting of Stockholders are asked to contact Tom Cuddy, director Corporate Communications, at (219) 647-5581, to make arrangements.

About NiSource

NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.8 million customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Information about NiSource and its subsidiaries is available via the Internet at www.nisource.com. NI-F

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of those factors could cause actual results to differ materially from those projected. These forward-looking statements include, but are not limited to, statements concerning NiSource's plans, objectives, expected performance, expenditures and recovery of expenditures through rates, stated on either a consolidated or segment basis, and any and all underlying assumptions and other statements that are other than statements of historical fact. From time to time, NiSource may publish or otherwise make available forward-looking statements of this nature. All such subsequent forward-looking statements, whether written or oral and whether made by or on behalf of NiSource, are also expressly qualified by these cautionary statements. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially. Realization of NiSource's objectives and expected performance is subject to a wide range of risks and can be adversely affected by, among other things, weather, fluctuations in supply and demand for energy commodities, growth opportunities for NiSource's businesses, increased competition in deregulated energy markets, the success of regulatory and commercial initiatives, dealings with third parties over whom NiSource has no control, the effectiveness of NiSource's restructured outsourcing agreement, actual operating experience of NiSource's assets, the regulatory process, regulatory and legislative changes, changes in general economic, capital and commodity market conditions, and counterparty credit risk, many of which risks are beyond the control of NiSource. In addition, the relative contributions to profitability by each segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time. These and other risks are outlined more fully in the Company's Form 10-K for the period ended Dec. 31, 2008. NiSource expressly disclaims a duty to update any of the forward-looking statements contained in this report.

SOURCE NiSource Inc.

http://www.nisource.com

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