EP EL Paso Corp. (Holding Co.)

HOUSTON, Dec. 13 /PRNewswire-FirstCall/ -- Southern Natural Gas Company (SNG), a majority owned subsidiary of El Paso Corporation (NYSE:EP), announced today that it has determined the consideration to be paid in connection with its pending cash tender offer to purchase any and all of its outstanding 6.125-percent Notes due September 15, 2008 (CUSIP No. 843452AX1). The tender offer is subject to the terms and conditions set forth in SNG's Offer to Purchase dated November 29, 2007 (the Offer to Purchase). Holders who validly tendered (and did not validly withdraw) notes in the tender offer at or prior to 5 p.m., New York City time, on December 12, 2007, will receive $1,016.16 per $1,000 principal amount of notes tendered, which is referred to in the Offer to Purchase as the "Full Tender Offer Consideration," plus any accrued and unpaid interest from the last interest payment date for the notes to, but not including, the initial settlement date, which SNG expects will occur today, December 13, 2007. As of 5 p.m., New York City time, on December 12, 2007, $66,015,000 principal amount of notes had been validly tendered and not validly withdrawn. Holders who validly tender notes in the tender offer after 5 p.m., New York City time, on December 12, 2007, and at or prior to 12 midnight, New York City time, on December 27, 2007, will receive the full tender offer consideration set forth above minus the early tender premium of $30.00 per $1,000 principal amount, which is referred to in the Offer to Purchase as the "Late Tender Offer Consideration," plus any accrued and unpaid interest from the last interest payment date for the notes to, but not including, the final settlement date, which SNG expects will occur on December 28, 2007. The consideration to be paid in connection with the tender offer was determined by Merrill Lynch & Co. and J.P. Morgan Securities Inc., the dealer managers for the tender offer, as of 2 p.m., New York City time, on December 12, 2007, as set forth in the Offer to Purchase. SNG has retained Merrill Lynch & Co. and J.P. Morgan Securities Inc. to serve as the dealer managers for the tender offer and has retained Global Bondholder Services Corporation to serve as the depositary and information agent for the tender offer. Requests for documents may be directed to Global Bondholder Services Corporation by telephone at (866) 952-2200 or (212) 430-3774 or in writing at 65 Broadway, Suite 723, New York, NY, 10006. Questions regarding the tender offer may be directed to Merrill Lynch & Co. at (888) 654-8637 or (212) 449-4914, or J.P. Morgan Securities Inc. at (866) 834-4666 or (212) 834-4802. This press release is neither an offer to purchase nor a solicitation of an offer to sell the notes or any other securities. The tender offer is made only by and pursuant to the terms of the Offer to Purchase and the related letter of transmittal. None of SNG, the dealer managers or the depositary and information agent makes any recommendations as to whether holders should tender their notes pursuant to the tender offer. Holders must make their own decisions as to whether to tender notes, and, if so, the principal amount of notes to tender. SNG is a Delaware general partnership, originally formed as a corporation in 1935, and a majority owned subsidiary of El Paso Corporation. Its primary business consists of the interstate transportation and storage of natural gas. SNG conducts its business activities through its Southern Natural Gas pipeline system and related storage facilities. El Paso Corporation provides natural gas and related energy products in a safe, efficient, dependable manner. El Paso Corporation owns North America's largest interstate natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit http://www.elpaso.com/. Cautionary Statement Regarding Forward-Looking Statements This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are based on assumptions that SNG believes to be reasonable. However, actual results almost always vary from assumed facts and the differences can be material, depending upon the circumstances. As a result, you should not place undue reliance on such forward-looking statements. The words "believe," "expect," "estimate," "anticipate" and similar expressions will generally identify forward-looking statements. All of SNG 's forward-looking statements, whether written or oral, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements. In addition, SNG disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date of this release. With this in mind, you should consider the risks discussed in the Offer to Purchase, under the caption "Risk Factors" in SNG's Annual and Quarterly Reports on Forms 10-K and 10-Q and in the other documents SNG files with the SEC from time to time, which could cause actual results to differ materially from those expressed in any forward-looking statement made by SNG or on SNG's behalf. DATASOURCE: El Paso Corporation CONTACT: Investor-Media Relations, Bruce L. Connery, Vice President, +1-713-420-5855, fax, +1-713-420-4417, or Media Relations, Bill Baerg, Manager, +1-713-420-2906, fax, +1-713-420-4417, both of El Paso Corporation Web site: http://www.elpaso.com/

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