FOR IMMEDIATE RELEASE
January 31, 2003

Investors Rae Kozlowski Manager, Investor Relations NiSource Inc. (219) 647-6083 ekozlowski@nisource.com

FOR ADDITIONAL INFORMATION
Media
Mark Friedlander
Corporate Communications
NiSource Inc.
(219) 647-6217
mfriedland@nisource.com

MERRILLVILLE, Ind. - The directors of Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource Inc. (NYSE: NI), today declared dividends on the following preferred stocks:

• $1.0625 per share on 4-1/4 percent cumulative preferred stock.
• $1.13 per share on 4-1/2 percent cumulative preferred stock.
• $1.06 per share on 4.22 percent cumulative preferred stock.
• $1.22 per share on 4.88 percent cumulative preferred stock.
• $1.86 per share on 7.44 percent cumulative preferred stock.
• $1.87 per share on 7.50 percent cumulative preferred stock.
• $1.9375 per share on 7-3/4 percent cumulative preferred stock.
• $2.0875 per share on 8.35 percent cumulative preferred stock.
• 75 cents per share on the adjustable rate cumulative preferred stock, series A.

All of the above are payable on April 14, 2003, to shareholders of record at the close of business on March 14, 2003.

NIPSCO, with headquarters in Merrillville, Ind., is one of the 10 energy distribution companies of NiSource Inc. (NYSE: NI). With nearly 700,000 natural gas customers and 430,000 electric 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. NiSource distribution companies serve 3.7 million natural gas and electric customers primarily in nine states. More information about NIPSCO is available at www.nipsco.com.