Corporate Information
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SEMCO ENERGY GAS COMPANY to Break Ground on New Headquarters

PORT HURON, Mich., March 17 /PRNewswire/ -- SEMCO ENERGY GAS COMPANY will host a ceremonial ground breaking for its new headquarters on March 22, 1999.

Construction on the over 74,000 square-foot building will begin this spring. The three-story building will be located in the city of Port Huron south of the Black River and off 10th street.

The structure will house some 180 gas company employees. Corporate employees will remain at SEMCO ENERGY, Inc. (Nasdaq: SMGS) Water Street headquarters.

Built to SEMCO ENERGY's specifications, the cost of the new building is approximately $7 million. SEMCO ENERGY is in the process of finalizing its lease agreement with Cardinal Capital Partners, Inc., a Dallas, TX-based investment firm.

Over 100 individuals have been invited to participate in the ceremony which will begin at 1:30 p.m. and conclude at 2:30 p.m. SEMCO ENERGY GAS COMPANY distributes regulated natural gas to approximately 250,000 customers in Michigan. SEMCO ENERGY Inc. also is the parent company of SEMCO ENERGY SERVICES, an unregulated marketer of natural gas and related services; and SEMCO ENERGY VENTURES, which operates and acquires companies involved in natural gas pipeline and distribution system construction, construction engineering, quality assurance services and propane operations.
CONTACT: Francis R. Lieder, Jr. of SEMCO ENERGY, 810-987-2200, ext. 4186, or fax, 810-989-4098

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding SEMCO Energy's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

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