MERRILLVILLE, Ind.--NiSource Inc. (NYSE:NI) today reported basic earnings per share of $1.29 for the 12 months ended December 31, 1999, a 19 percent decrease when compared with $1.60 per share for the same period a year ago. Net income for the year was $160.4 million, down $33.5 million from the same period a year ago.

The 1999 and 1998 12-month periods are not directly comparable due to the acquisition of Bay State Gas Company in February 1999 and EnergyUSA-TPC in April 1999. As natural gas businesses, Bay State Gas Company and EnergyUSA-TPC record the bulk of their revenues during the winter heating season. The timing of these acquisitions, the seasonal nature of these operations and a milder-than-normal winter and fall resulted in lower earnings for the year.

Excluding the results of operations of the Bay State Gas Company and EnergyUSA-TPC, 1999 earnings reflected stronger operating results from NiSource's electric and water businesses along with continued customer growth.

Results also include an after-tax charge of $8.1 million incurred in connection with the company's attempted acquisition of Columbia Energy Group. The company continues to participate in the current auction process for Columbia. However, Columbia recently disclosed that it has received preliminary indications of interest from other potential acquirers suggesting a willingness to pay a per share price for Columbia stock that would be higher than NiSource's pending $74 per share offer. NiSource also recorded after-tax charges of $18.3 million during 1999, related to equity investments, primarily exploration and production.

Fourth-quarter net income was down by $27.6 million from the prior year period. Basic earnings per share for the fourth quarter were $0.26 compared with $0.51 for the same period a year ago. This decrease was largely due to milder-than-normal weather, which negatively affected the natural gas business, the charge representing the cumulative costs of the Columbia acquisition and increased expenses for distributed generation and fuel cell research and development.

NiSource is a holding company whose primary business is the distribution of electricity, natural gas and water in the Midwest and Northeast United States. The company also markets utility services and customer focused resource solutions along a corridor stretching from Texas to Maine. Information about NiSource and its subsidiaries is available via the Internet at www.nisource.com.

These materials contain forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations and financial performance. These statements involve risks and uncertainties inherent in business forecasts, and actual results could differ materially from those indicated in these statements.

Three Months Ended December 31,		1999	1998
		(Dollars in Thousands
		except per share amounts)
Operating Revenues
	Gas
	Sales & Marketing	$ 505,088	$ 364,366
	Transport	20,437	13,711
	Electric	256,022	290,438
	Water	23,589	21,039
	Products & Services	79,549	63,680
	Total Operating Revenues	$ 884,685	$ 753,234
Operating Margin
	Gas	$ 150,826	$ 89,874
	Electric	190,810	186,419
	Water	23,589	21,039
	Products & Services	36,999	34,416
	Total Operating Margin	$ 402,224	$ 331,748
Net Income		$ 32,956	$ 60,592
Average Common Shares Outstanding		124,714,510	117,646,768
Basic Earnings per Average Common Share		$ 0.26	$ 0.51
Diluted Earnings per Average Common Share		$ 0.25	$ 0.51
Dividend declared per Common Share		$ 0.270	$ 0.255
Gas Deliveries (dekatherms 000's)
	Gas Sales	200,535	131,420
	Gas Transported	74,433	53,178
Electric Sales (megawatt hours)		4,280,733	5,891,836
Water Sales (millions of gallons)		9,703	10,422
Twelve Months Ended December 31,		1999	1998
		(Dollars in Thousands
		except per share amounts)
Operating Revenues
	Gas
	Sales	$ 1,576,294	$ 1,166,927
	Transport	77,156	42,848
	Electric	1,121,038	1,426,600
	Water	98,383	83,979
	Products & Services	271,705	212,424
	Total Operating Revenues	$ 3,144,576	$ 2,932,778
Operating Margin
	Gas	$ 465,992	$ 284,737
	Electric	800,129	763,661
	Water	98,383	83,979
	Products & Services	129,021	108,034
	Total Operating Margin	$ 1,493,525	$ 1,240,411
Net Income		$ 160,414	$ 193,886
Average Common Shares Outstanding		124,343,117	120,778,077
Basic Earnings per Average Common Share		$ 1.29	$ 1.60
Diluted Earnings per Average Common Share		$ 1.27	$ 1.59
Dividend declared per Common Share		$ 1.035	$ 0.975
Gas Deliveries (dekatherms (000's)
	Gas Sales	548,174	413,038
	Gas Transported	257,174	202,890
Electric Sales (megawatt hours)		18,378,979	29,480,472
Water Sales (millions of gallons)		42,965	40,822