SUG Southern Union Company Common Stock

Southern Union Company (NYSE:SUG) today announced Trunkline Gas Company�s Field Zone Expansion project has been completed. The Field Zone Expansion project, which had been announced in June 2006, added up to 625 million cubic feet per day of capacity to Trunkline Gas Company�s pipeline system out of Texas and increased delivery capacity into the Erath, La., area, and specifically the Henry Hub. The capacity out of Texas created by this project is contracted to shippers under multi-year firm transportation agreements. �We are excited to get this project in service and allow our customers to begin delivering additional Texas supply to higher value markets in Louisiana and beyond,� said Rob Bond, Southern Union�s senior vice president of pipeline operations and president of Panhandle Energy. �We believe this project can be a catalyst to additional development opportunities.� Trunkline Gas Company, a unit of Southern Union Company, operates a 3,500-mile natural gas pipeline system with access to Gulf Coast supply sources, which can deliver 1.5 billion cubic feet per day of natural gas to Midwest and East Coast markets. About Southern Union Company Southern Union Company, headquartered in Houston, is one of the nation�s leading diversified natural gas companies, engaged primarily in the transportation, storage, gathering, processing and distribution of natural gas. The company owns and operates one of the nation�s largest natural gas pipeline systems with approximately 20,000 miles of gathering and transportation pipelines and North America�s largest liquefied natural gas import terminal. Through Panhandle Energy, Southern Union�s interstate pipeline interests operate approximately 15,000 miles of interstate pipelines that transport natural gas from the Anadarko and San Juan basins, the Rockies, the Gulf of Mexico, Mobile Bay and South Texas to major markets in the Southeast, Midwest and Great Lakes region. Southern Union Gas Services, with approximately 4,800 miles of pipelines, is engaged in the gathering, transmission, treating, processing and redelivery of natural gas and natural gas liquids in Texas and New Mexico. Through its local distribution companies, Missouri Gas Energy and New England Gas Company, Southern Union also serves more than half a million natural gas end-user customers in Missouri and Massachusetts. For further information, visit www.sug.com.