AGL Resources Chairman, President and CEO John W. Somerhalder II told attendees of today's Annual Meeting of Shareholders that the energy market fundamentals are very favorable to natural gas now and for the foreseeable future, given its environmental and efficiency advantages. At the meeting held in the company's Atlanta headquarters, shareholders re-elected five directors and later the board of directors declared a first quarter dividend.

"The direct use of natural gas is the most efficient use of any fossil fuel and provides significant environmental benefits that cannot be matched on a large scale by any other fuel source," Somerhalder said.

"We believe that natural gas, the cleanest burning fossil fuel, will serve as the 'bridge fuel' over at least the next decade and will play an important role in meeting our nation's future energy needs," Somerhalder continued. "The increasing demand for natural gas, together with our proposed natural gas storage project in Texas and pipeline projects in Virginia and Georgia, positions us well for long-term growth."

Somerhalder noted several highlights of AGL Resources' performance in 2007, including the following:

   -- AGL Resources delivered record earnings of $2.74 per basic share, as
      compared to 2006 basic earnings per share, although these results were
      $0.01 per share below the earnings guidance range the company
      previously had provided to investors.

   -- Strong operational results in each of the company's business units and
      improved financial performance as compared to 2006 in the company's
      distribution operations, retail energy operations and energy
      investments operating segments.

   -- Golden Triangle Storage, a storage facility under development in
      Beaumont, Texas, has received FERC regulatory approvals in addition to
      strong local and state support.  The company will break ground next
      week to begin the construction process.

   -- The company is constructing two important pipeline projects in
      Virginia and Georgia that will provide supply diversity to customers
      in those states.

      -- The Hampton Roads Crossing pipeline in Virginia will connect the
         northern part of the company's Virginia Natural Gas system with the
         southern portion.

      -- The Magnolia Pipeline Project in Georgia, part of the Capacity
         Supply Plan approved by the Georgia Public Service Commission in
         2007 and subject to FERC approval, will bring natural gas supply
         from the Elba Island Liquefied Natural Gas facility off the Georgia
         coast in Savannah to the Atlanta metropolitan area.

"These infrastructure projects, coupled with our storage development projects, illustrate that we continue to have good opportunities to deploy capital in a way that will benefit the company and its shareholders long-term," Somerhalder said.

"If you look at our track record over the past few years, you will see that we've been able to perform very well on a consistent basis and achieve a strong track record of financial results," Somerhalder concluded.

Somerhalder reiterated the company's projected earnings to be in the range of $2.75 to $2.85 per share for 2008.

Election of Directors

During the meeting, shareholders re-elected Sandra N. Bane, Arthur E. Johnson, James A. Rubright, John W. Somerhalder II and Bettina M. Whyte. Bane's current term will end at the 2010 annual meeting of shareholders; the terms of Johnson, Rubright, Somerhalder and Whyte will end at the 2011 annual meeting of shareholders.

Bane was initially appointed to the AGL Resources board of directors on Feb. 29, 2008.

"Sandra brings a wealth of financial accounting experience and knowledge to the board," said Somerhalder. "She also has spent several years focused on human resources and employee benefit issues. I believe her insights and leadership will be a tremendous asset to our board."

Bane is a former partner of KPMG, LLP and retired after having served 23 years with the firm, where she headed the Western region's merchandising practice. She helped establish the employee benefits audit specialist program and was partner in charge of the Western region's Human Resource department for two years. Bane is also a member of the board of directors of Big 5 Sporting Goods Corporation and Transamerica Asset Management Group, a mutual fund company.

A resident of Pasadena, California, she also serves as a member of the boards of several nonprofit institutions in her community and is a member of the American Institute of Certified Public Accountants (AICPA) and the California Society of Certified Public Accountants.

Bane has been assigned to serve on the Audit and Compensation and Management Development committees of the AGL Resources Board of Directors.

Dividend Declaration

The Board of Directors declared a quarterly dividend of $0.42 per share on the company's common stock. The dividend will be paid June 1 to shareholders of record at the close of business on May 16. This marks the 242nd consecutive quarterly dividend the company has paid since 1948.

An audio-only webcast of the meeting is available at http://www.aglresources.com/. The webcast is available in Windows Media and RealPlayer streaming-media formats.

About AGL Resources

AGL Resources , an Atlanta-based energy services company, serves more than 2.2 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout North America. As a 70 percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. The company also owns and operates Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana. For more information, visit www.aglresources.com.

Forward-Looking Statements

Certain expectations and projections regarding our future performance referenced in this press release are forward-looking statements. Forward- looking statements involve matters that are not historical facts and because these statements involve anticipated events or conditions, forward-looking statements often include words such as "anticipate," "assume," "believe," "can," "could," "estimate," "expect," "forecast," "future," "goal," "indicate," "intend," "may," "outlook," "plan," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions. Our expectations are not guarantees and are based on currently available competitive, financial and economic data along with our operating plans. While we believe our expectations are reasonable in view of the currently available information, our expectations are subject to future events, risks and uncertainties, and there are several factors -- many beyond our control -- that could cause results to differ significantly from our expectations.

Such events, risks and uncertainties include, but are not limited to, changes in price, supply and demand for natural gas and related products; the impact of changes in state and federal legislation and regulation; actions taken by government agencies on rates and other matters; concentration of credit risk; utility and energy industry consolidation; impact of acquisitions and divestitures; direct or indirect effects on AGL Resources' business, financial condition or liquidity resulting from a change in our credit ratings or the credit ratings of our counterparties or competitors; interest rate fluctuations; financial market conditions and general economic conditions; uncertainties about environmental issues and the related impact of such issues; the impact of changes in weather upon the temperature-sensitive portions of the business; impacts of natural disasters such as hurricanes upon the supply and price of natural gas; acts of war or terrorism; and other factors which are provided in detail in our filings with the Securities and Exchange Commission, which we incorporate by reference in this press release. Forward-looking statements are only as of the date they are made, and we do not undertake to update these statements to reflect subsequent changes.

First Call Analyst:
FCMN Contact: jholt@aglresources.com

SOURCE: AGL Resources