UGI Energy Services, LLC, ("UGIES") a wholly-owned subsidiary of UGI Corporation (NYSE: UGI) today announced that it placed its newly constructed 28-mile gathering pipeline and compressor station in full service. The Auburn pipeline extension provides a conduit for lower cost gas supplies that benefit local consumers while providing access to additional interstate markets for Marcellus producers. The approximately $160 million project transports locally-produced natural gas through UGIES' Manning compressor station in Wyoming County, south to UGI Penn Natural Gas, Inc. ("UGI PNG"), one of UGI's Pennsylvania natural gas and electric utilities, and Transcontinental Gas Pipe Line Company ("Transco").

The 20-inch diameter pipeline and compressor station are capable of delivering approximately 200,000 dekatherms per day initially and can be easily expanded to accommodate additional Marcellus Shale or other natural gas production capacity. These facilities complete, for now, the build-out of UGIES' Auburn system which currently interconnects with Tennessee Gas Pipeline in the north and UGI PNG and Transco in the south.

John Walsh, president and chief executive officer of UGI, said, "Over two years of planning and construction have led us to this important milestone. We are excited to provide the benefits offered by this project, which will become a key source of supply to local gas customers and interstate markets. It is an excellent example of UGI companies executing on our strategy to connect local Marcellus supplies with high value markets."

Brad Hall, President of UGIES, said, "We are very excited to have accomplished our goal of building the project with great attention to minimizing the impact to the local environment and communities. We look forward to continuing our legacy of safe and reliable transportation of this low cost, abundant and clean burning natural resource."

About UGI Energy Services, LLC

UGI Energy Services, LLC owns approximately 15 BCF of underground natural gas storage in north-central Pennsylvania, operates peaking plants and propane terminals in Pennsylvania, markets LNG to mobile and stationary end users, and is developing midstream projects throughout the Marcellus Shale region. UGI Energy Services also markets natural gas, electricity and liquid fuels to approximately 18,000 commercial and industrial customers at approximately 43,000 locations in nine eastern states and Washington, D.C. and owns electric generation and LNG assets in Pennsylvania.

To learn more about the benefits of the Auburn pipeline extension, visit http://www.auburnline.com

About UGI Utilities

UGI Utilities, Inc. is a wholly-owned subsidiary of UGI Corporation. UGI Utilities' Gas Division now serves approximately 600,000 customers in Pennsylvania, including the cities of Allentown, Bethlehem, Easton, Harrisburg, Lancaster, Lebanon, Reading, Scranton, Wilkes-Barre and Williamsport. UGI Utilities' Electric Division serves approximately 62,000 customers in two northeastern Pennsylvania counties near Wilkes-Barre.

About UGI

UGI is a distributor and marketer of energy products and services. Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania, distributes propane both domestically and internationally, manages midstream energy and electric generation assets in Pennsylvania, and engages in energy marketing in the Mid-Atlantic region. UGI, through subsidiaries, is the sole General Partner and owns 26% of AmeriGas Partners, L.P. (NYSE:APU), the nation's largest retail propane distributor.

Comprehensive information about UGI Corporation is available on the Internet at http://www.ugicorp.com

Investor Contacts:
UGI Corporation
Simon Bowman, 610-337-1000 ext. 3645
Shelly Oates, 610-337-1000 ext. 3202
or
Industry Contact:
UGI Energy Services, LLC
Peter Terranova, 610-373-7999 ext. 103