FOR IMMEDIATE RELEASE
April 22, 2004

FOR ADDITIONAL INFORMATION

Regina Biddings, Director NIPSCO Communications (219) 647-6388

MERRILLVILLE, Ind. --- To commemorate Earth Day, Northern Indiana Public Service Company (NIPSCO), a wholly-owned subsidiary of NiSource, Inc. (NYSE: NI), awarded nine local grants totaling over $36,000 to nine local environmental organizations through the NiSource Environmental Challenge Fund (ECF).

They are: Shirley Heinz Land Trust, Ducks Unlimited, Valparaiso Department of Parks and Recreation, Friends of the Indiana Dunes, Trustees of Indiana University,

Save the Dunes Conservation Fund, Waterfowl USA, St. Patrick’s Catholic School, and the Lake County Parks and Recreation Department.

The ECF, a not-for-profit corporation, offers an annual grant competition that supports local natural resource and wildlife enhancement projects and related educational and recreational efforts in communities across NiSource’s market area. This geographic area includes 19 states stretching from the Gulf Coast through the Midwest to New England.

“With these grants, NIPSCO is showing its support to local organizations that are committed to improving the environment and the quality of life in the local communities we serve,” said NIPSCO President Mark Maassel. “This is part of NIPSCO’s commitment to sustainability, which drives our efforts to maintain balance in the environment.”

Within NIPSCO’s communities, a local ECF Advisory Board reviewed and selected the winning proposals from grant requests submitted earlier this year.

“The ECF is just one of many ways NiSource demonstrates its commitment to the environment – and recognizes and supports others’ involvement,” added Senior Vice President, Environmental Counsel and ECF Board Member Art Smith. “NiSource and its subsidiaries help improve their local communities by promoting sustainable business practices, including supporting community quality-of-life initiatives.”

In total, NiSource operating companies are awarding over $172,000 in grants to not-for-profit organizations in conjunction with Earth Day 2004.

The NIPSCO grants are for:

Invasive Species Control at Ambler Flatwoods
Shirley Heinz Land Trust will remove invasive species and plant native species to restore a unique natural area at Ambler Flatwoods.

Lafayette Greenwings
The ECF will provide for the building of Wood Duck nesting boxes to be built during a youth outdoor education day sponsored by Ducks Unlimited.

Fifty Trees of the Indiana Trail
The Valparaiso Department of Parks and Recreation will purchase and plant fifty large native trees at Foundation Meadows Park.

Stabilize Disturbed Foredune Habitat with Marram Grass
Friends of the Indiana Dunes will grow marram grass on disturbed foredunes to reduce erosion.

Little Calumet River Prairie and Wetlands
The Trustees of Indiana University will convert marginal land dominated by non-native plant species to high quality native prairie and wetlands.

Purple Loosestrife Control
Save the Dunes Conservation Fund will purchase, raise and distribute leaf-eating beetles to reduce the growth and reproduction of the Purple Loosestrife, an aggressive exotic perennial that displaces native wetland species and changes wetland ecosystems.

Don & Mary Roberts Wildlife Area
The Northwest Indiana Chapter of Waterfowl USA will restore wetlands, uplands, forested river bottoms and fields of warm season prairie grasses by hand planting seedlings, shrubs and trees.

St. Patrick’s Outdoor Lab
St. Patrick’s Catholic School will further restore a nearby prairie currently serving as a teaching lab.

Lake Etta County Park Aquatic Habitat Improvement Project
As part of a plan to reduce algae in Lake Etta during summer months, Lake County Parks and Recreation Department will install an aeration system to increase dissolved oxygen in the lake.

About NiSource Environmental Challenge Fund
The NiSource Environmental Challenge Fund was established in 1995 and has contributed nearly $650,000 to 195 projects since its inception. The Environmental Challenge Fund is funded primarily by a grant from the NiSource Charitable Foundation. For more information about the Fund, visit www.nisource.com/enviro/ecf.asp.

About NiSource Inc.
NiSource Inc. is a Fortune 500 holding company with headquarters in Merrillville, Ind., whose core operating companies engage in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to more than 3.7 million customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Information about NiSource and its subsidiaries is available at www.nisource.com.

About NIPSCO
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.