August 29, 2000

MERRILLVILLE, Ind.--- Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource Inc., announced today the utility's donation of its downtown corporate headquarters facility to the Hammond Development Corporation. Robert Schacht, NIPSCO's vice president of Distribution Operations, made the announcement as part of a city of Hammond and Hammond Development Corporation press conference explaining new downtown development initiatives in which the former NIPSCO corporate headquarters will play a critical role.

"NIPSCO's donation of our former corporate headquarters facility represents an investment in the future of downtown Hammond and is an indication of our company's continued commitment to the City," said Schacht. "Even though we are moving from our downtown facility, which has been the utility's home office since 1928, NIPSCO plans to remain an active partner and supporter in the city of Hammond."

"The donation of the NIPSCO corporate headquarters facility will play a key role in the current and future redevelopment of the downtown," stated city of Hammond Mayor Duane W. Dedelow Jr. "We look forward to a continued partnership with NIPSCO on the downtown and other Hammond projects."

NIPSCO's decision to donate the facility was based on what would best serve the long-term interest of both NIPSCO and the City.

"We wanted to know our building would continue to be an asset to downtown Hammond, and our partnership with the City and the Hammond Development Corporation provided the best opportunity for this to be accomplished," said Schacht. "This also reduced NIPSCO's ongoing maintenance and property tax expense for a building that no longer served the corporation's long-term needs for office space."

Changes in NIPSCO's organizational structure in recent years plus the availability of office space at the NiSource Corporate Headquarters facility in Merrillville and other NIPSCO facilities had eliminated the need for the downtown NIPSCO office. The last NIPSCO employees remaining at the facility were relocated at the end of July this year.

No job reductions were involved with the relocation from the Hammond office.

The original NIPSCO corporate headquarters building was built in 1925 as a three-story structure and was initially occupied by NIPSCO's predecessor, Northern Indiana Electric Company. NIPSCO purchased the building and property in 1928. A fourth floor was added to the structure in the mid-1930s to house the offices of NIPSCO officers, including then chairman and president Dean H. Mitchell. In the mid-1950s, a six-story east annex was added, followed by the purchase of the "Yale Building" directly south of the corporate headquarters, which became the corporate headquarters' south annex.

NIPSCO corporate headquarters will now share an address with its parent company, NiSource Inc., at their Merrillville, Ind. location.

Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource Inc., is a regulated utility that provides natural gas to nearly 700,000 customers and electricity to 416,000 customers across the northern third of Indiana. NIPSCO is the largest natural gas distribution company, and the second largest electric distribution company, in the state of Indiana. Information about NiSource Inc. and its subsidiaries is available via the Internet at www.nisource.com.