Peoples Energy Board Elects Thomas A. Nardi, Executive Vice President

Peoples Energy (NYSE:PGL) said today that the board of
directors elected Thomas A. Nardi to the post of executive vice
president and chief financial officer.
   Nardi, 50, adds the title of executive vice president to his prior
role as chief financial officer of the firm. He reports to Thomas M.
Patrick, chairman, president and CEO. His responsibilities include
oversight for all of Peoples Energy's financial services functions,
including, accounting, corporate finance, internal auditing, corporate
risk management and investor relations as well as the company's
strategic planning and development functions.
   "I am pleased to announce this promotion, which recognizes Tom's
increasingly important role in the company," said Patrick. "In just a
few short years, he has become an integral player in the senior
leadership of Peoples Energy, bringing broad experience and excellent
skills and vision."
   Nardi has 28 years of experience in the energy industry. He joined
Peoples Energy as the president and CEO of its retail energy services
business in the fall of 2000. He became CFO and senior vice president
of Peoples Energy Corporation early in its fiscal 2002. He previously
worked at Nicor, Inc., a gas distribution company in northern
Illinois, from 1981-2000, serving in a variety of accounting and
finance, operating, regulatory and development positions. Nardi
started his career in the Chicago office of Arthur Andersen where he
worked from 1976-1981.
   Nardi has a bachelor's degree in accounting from Western Illinois
University and a master's degree in finance from the University of
Chicago.
   Active in the business community, Nardi serves on Western Illinois
University's College of Business Advisory Council as well as its
Accounting Advisory Council, the City of Naperville Public Utility
Advisory Board, and the Board of Governors of the Mid-America Club. He
is also a member of the Economic Club of Chicago, Financial Executives
International and the AICPA.

   Peoples Energy, a member of the S&P 500, is a diversified energy
company consisting of five primary business segments: Gas
Distribution, Power Generation, Midstream Services, Retail Energy
Services, and Oil and Gas Production. The Gas Distribution business
serves about 1 million utility customers in Chicago and northeastern
Illinois. Visit the Peoples Energy web site at PeoplesEnergy.com.