FOR IMMEDIATE RELEASE
October 11, 2000

FOR MORE INFORMATION
Regina D. Biddings
(219) 647-6204

NIPSCO Environmental Challenge Fund Makes 2000 Grant Awards

NiSource subsidiary applauds award recipients

MERRILLVILLE, Ind. - NiSource (NYSE: NI) subsidiary Northern Indiana Public Service Co. (NIPSCO) is awarding a total of more than $19,000 in grants through its employee-driven Environmental Challenge Fund this year. Nine projects have been selected to share the award money, which was raised through employee and corporate contributions.

All award recipients are being recognized at a ceremony today at 6 p.m. at NiSource's Southlake Complex, 801 E. 86th Ave. in Merrillville, Ind.

Recipients include the Earthworks Ecology Center Habitat Restoration project near Plymouth, Ind.; the Goose Lake Restoration Project along the Kankakee River in Lake County, Ind.; the Hands-On Butterfly Garden at the Woodlawn Nature Center in Elkhart, Ind., and the Ivanhoe South Dune and Swale Restoration in Gary, Ind.

Other recipients were the Cedar Lake Fish and Game Nesting Boxes at the Grand Kankakee Marsh County Park in Lake County, Ind., the Northwest Indiana Ecological Initiative III, Project Owlet in Crown Point, Ind., and Wetland Restoration at the Taltree Arboretum and Gardens in Porter County, Ind.

"The environmental contributions of NIPSCO employees continue to make a difference in helping to preserve and enhance our communities," said Arthur E. Smith, Jr., NiSource Environmental officer and counsel.

"Consistent, proactive steps that provide a sustainable quality environment for future generations is part of NiSource's Environmental Policy. The NIPSCO Environmental Challenge Fund is one of the many ways that the company works with environmental and community groups, neighborhood associations and other non-profit organizations to improve the environment for future generations."

The Environmental Challenge Fund is an employee-driven, non-profit corporation developed by NIPSCO. The Fund's mission is to preserve, enhance and protect environment areas important to community groups. Through the fund, employees can demonstrate their environmental commitment while providing funds to organizations that want to make environmental preservation and enhancement efforts a reality.

NIPSCO is a regulated utility that provides natural gas service to nearly 700,000 customers and electrical service 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. More information about NIPSCO and other NiSource subsidiaries is available via the Internet at www.nipsco.com.

NiSource Inc. is a holding company with headquarters in Merrillville, Ind., whose primary business is the distribution of electricity, natural gas and water in the Midwest and Northeastern United States. The company also markets utility services and customer-focused resource solutions along a corridor from Texas to Chicago to Maine.