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SEMCO ENERGY, Inc. Acquires Iowa Pipeline Associates, Inc.

PORT HURON, Mich., April 6 /PRNewswire/ -- SEMCO ENERGY, Inc. (Nasdaq: SMGS) today announced that it has purchased Iowa Pipeline Associates, Inc.

The Council Bluffs, Iowa-based company builds underground natural gas pipelines and local gas distribution networks for customers in Iowa, Kansas, Missouri and Nebraska. The company will continue to operate as Iowa Pipeline Associates, Inc., a business unit of SEMCO ENERGY VENTURES.

William E. Mudge, President of Iowa Pipeline Associates, will continue in that role.

William L. Johnson, Chairman, President and Chief Executive Officer of SEMCO ENERGY, Inc., said, "Growing our construction services is crucial as we focus our company on becoming one of the largest providers of underground engineering and construction services in North America. By acquiring Iowa Pipeline Associates, we have expanded our capacity to provide quality engineering and construction services for an ever-widening customer base. We are delighted to have a person of Bill Mudge's experience and operating abilities as part of our management team."

Iowa Pipeline Associates has annual revenue of approximately $10 million and employs some 185 individuals. The purchase price was undisclosed.

This is SEMCO ENERGY's second acquisition in 1999. In February, the Company bought K&B Construction, Inc., an underground gas distribution pipeline construction company based in Kansas City, KS.

SEMCO ENERGY VENTURES operates businesses involved in pipeline engineering and quality assurance services, construction services, propane distribution, intrastate pipelines and natural gas storage businesses in Iowa, Kansas, Louisiana, Michigan, Missouri, Nebraska, New Jersey, Tennessee, Texas and Wisconsin.

SEMCO ENERGY, Inc., a diversified energy services and infrastructure company, also owns SEMCO ENERGY GAS COMPANY, which distributes natural gas to 250,000 residential, industrial and commercial customers in Michigan's Upper and Lower Peninsula.
CONTACT: Media: Francis R. Lieder, Jr., 810-987-2200, ext. 4186, or fax, 810-989-4098, or Analysts: Edric R. Mason, Jr., 810-989-4104, or fax, 810-989-4098, both of SEMCO ENERGY

"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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