ATO Atmos Energy Corp

Atmos Energy Corporation (NYSE: ATO) announced today that it has priced a public offering of $450 million aggregate principal amount of its 8.50% senior notes due 2019, with a yield to maturity of approximately 8.53%.

Banc of America Securities LLC, Goldman, Sachs & Co., RBS Greenwich Capital and SunTrust Robinson Humphrey are serving as the joint book-running managers for the offering, with BNP Paribas, Morgan Stanley, UBS Investment Bank, U.S. Bancorp Investments, Inc. and Wachovia Securities serving as senior co-managers. Junior co-managers for the offering are CALYON, Comerica Securities, Commerzbank Corporates & Markets, Lloyds TSB Corporate Markets, Mitsubishi UFJ Securities, Natixis Bleichroeder Inc. and The Williams Capital Group, L.P.

Atmos Energy intends to use a portion of the net proceeds of this offering of approximately $446 million to redeem its $400 million 4.00% senior notes due 2009 that Atmos Energy expects to call for redemption on or about May 1, 2009. The remaining net proceeds will be used for general corporate purposes, including the repayment of short-term debt outstanding under the company�s revolving credit facilities.

The public offering of senior notes may be made only by means of a prospectus supplement and the accompanying prospectus. A copy of the preliminary prospectus supplement and the accompanying prospectus may be obtained from Banc of America Securities LLC, Goldman, Sachs & Co., RBS Greenwich Capital or SunTrust Robinson Humphrey as follows:

Banc of America Securities LLC

Attention: Prospectus Dept.

100 West Street, 3rd Floor

New York, NY 10001

1-800-294-1322

� Goldman, Sachs & Co.

85 Broad Street

New York, NY 10004

1-866-471-2526

� RBS Greenwich Capital

600 Steamboat Road

Greenwich, CT 06830

1-866-884-2071

� SunTrust Robinson

Humphrey

303 Peachtree Street

24th Floor

Atlanta, GA 30308

1-800-685-4786

This news release does not constitute an offer to sell any securities under the offering.