NiSource Announces Expiration and Final Results of Tender Offer for 7.875% Notes...

NiSource Announces Expiration and Final Results of Tender Offer for 7.875%
Notes Due 2010

MERRILLVILLE, Ind., April 29 /PRNewswire-FirstCall/ -- NiSource Inc. (NYSE:
NI) today announced the expiration and final results of the tender offer by
its finance subsidiary, NiSource Finance Corp. (the "Company"), for up to $300
million aggregate principal amount of its outstanding 7.875% Notes due 2010
(CUSIP No. 65473QAJ2) (the "Notes"). The terms and conditions of the tender
offer are set forth in an offer to purchase, dated March 31, 2009 (the "Offer
to Purchase").

The tender offer expired at 12:00 midnight, New York City time, on April 28,
2009 (the "Expiration Date"). As of the Expiration Date, the aggregate
principal amount of Notes validly tendered and not validly withdrawn was
$250,590,000. All such Notes have been accepted for payment by the Company,
with payment expected to occur today (the "Payment Date").

The Company previously extended the "Early Tender Time" to the Expiration
Date. As a result, holders of all Notes accepted for purchase will receive
$1,000 per $1,000 principal amount tendered, which includes an early tender
payment of $30 per $1,000 principal amount tendered. Holders of such Notes
will also be paid any accrued but unpaid interest on the Notes to, but not
including, the Payment Date. All Notes purchased in the tender offer will be
retired.

Citi, J.P. Morgan, and Wachovia Securities were the lead dealer managers and
Banc of America Securities LLC, Credit Suisse, and UBS Investment Bank were
the co-dealer managers in connection with the tender offer. Questions
regarding the tender offer may be directed to Citi at (800) 558-3745 (U.S.
toll-free) or J.P. Morgan at (212) 834-4802 (collect) or (800) 866-4666 (U.S.
toll-free). Requests for documentation may be directed to Global Bondholder
Services Corporation, the information agent and depositary for the tender
offer, at (212) 430-3774 (for banks and brokers) or (866) 873-7700 (U.S.
toll-free).

The tender offer was made solely by the Offer to Purchase, subject to a
previously announced extension of the Early Tender Time.

About NiSource
NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500
company engaged in natural gas transmission, storage and distribution, as well
as electric generation, transmission and distribution. NiSource operating
companies deliver energy to 3.8 million customers located within the
high-demand energy corridor stretching from the Gulf Coast through the Midwest
to New England. Information about NiSource and its subsidiaries is available
via the Internet at www.nisource.com.

Forward-Looking Statements
This news release includes forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended. Investors and
prospective investors should understand that many factors govern whether any
forward-looking statement contained herein will be or can be realized. Any one
of those factors could cause actual results to differ materially from those
projected. These forward-looking statements include, but are not limited to,
statements concerning NiSource's plans, objectives, expected performance,
expenditures and recovery of expenditures through rates, stated on either a
consolidated or segment basis, and any and all underlying assumptions and
other statements that are other than statements of historical fact. From time
to time, NiSource may publish or otherwise make available forward-looking
statements of this nature. All such subsequent forward-looking statements,
whether written or oral and whether made by or on behalf of NiSource, are also
expressly qualified by these cautionary statements. All forward-looking
statements are based on assumptions that management believes to be reasonable;
however, there can be no assurance that actual results will not differ
materially. Realization of NiSource's objectives and expected performance is
subject to a wide range of risks and can be adversely affected by, among other
things, weather, fluctuations in supply and demand for energy commodities,
growth opportunities for NiSource's businesses, increased competition in
deregulated energy markets, the success of regulatory and commercial
initiatives, dealings with third parties over whom NiSource has no control,
the effectiveness of NiSource's restructured outsourcing agreement, actual
operating experience of NiSource's assets, the regulatory process, regulatory
and legislative changes, changes in general economic, capital and commodity
market conditions, and counterparty credit risk, many of which risks are
beyond the control of NiSource. In addition, the relative contributions to
profitability by each segment, and the assumptions underlying the
forward-looking statements relating thereto, may change over time. These and
other risks are outlined more fully in NiSource's Form 10-K for the period
ended Dec. 31, 2008. NiSource expressly disclaims a duty to update any of the
forward-looking statements contained in this news release.

SOURCE NiSource Inc.

Media: Tom Cuddy, Director, Communications, +1-219-647-5581,
tcuddy@nisource.com; Investors: Randy Hulen, Director, Investor Relations,
+1-219-647-5688, rghulen@nisource.com, both of NiSource Inc.