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Southeastern Michigan Gas Enterprises, Inc. Announces Changes in Leadership Positions

PORT HURON, Mich., June 14 /PRNewswire/ -- Mr. Bill Johnson, President and Chief Executive Officer, Southeastern Michigan Gas Enterprises, Inc. (Nasdaq: SMGS) announced today the appointment of Carl W. Porter as Senior Vice President and Chief Operating Officer.

Mr. Porter is currently Vice President-Gas Utilities with Itron, Inc. Previously Mr. Porter served as Senior Vice President of Operations at New Jersey Natural Gas. He also completed successful assignments as Vice President of Operations at Western Resources and Director of Technical Services at Mich Con.

"Carl Porter has an extensive background in natural gas utility operations. He is a technologically oriented person with outstanding people skills. Carl will strengthen our team and provide creative leadership for our daily operations," stated Johnson.

Mr. Porter will begin his new assignment on July 1, 1996. Carl and Mary Kay Porter are originally from Michigan and have strong family ties throughout the state. The Porters have two teenage children, Mark and Emily.

Mr. Johnson also announced that Mr. Rob Caldwell will become Executive Vice President and Chief Financial Officer. Mr. Caldwell recently served as Chief Operating Officer of the Company.

"Rob Caldwell has a strong financial background. His recent experience in operations has greatly expanded his perspective. Rob will now be able to zero in on our diversification and acquisition activities. He will provide important leadership in our efforts to significantly grow the company in the years ahead," stated Johnson.

Johnson further announced that Mr. Caldwell will resign from the Board of Directors. In the future, the Chief Executive Officer will be the only member of management to serve on the Board. The Board will fill the vacant seat in the near future.

Mr. Johnson also indicated that a realignment of certain functions will take place immediately within the organization. Human Resources, Rates, regulatory Affairs and Gas Supply will report directly to the Chief Executive Officer. Also, SEMCO, Enterprises' unregulated subsidiary, will report directly to Johnson. A new public affairs department will be created in the near future which will also report to the CEO.

"These realignments are intended to sharpen our focus as we prepare for the new competitive environment. The changes will provide opportunity to deal with employee issues, community leadership and regulatory matters," Johnson explained. "I want to also direct attention to SEMCO marketing operations and to resolution of our NOARK investment," Johnson indicated.

Southeastern Michigan Gas Enterprises is a natural gas distribution company serving 226,000 customers in 23 counties throughout the State of Michigan.
SOURCE Southeastern Michigan Gas Enterprises
CONTACT: Dolores E. Noble, Manager Investor Relations of Southeastern Michigan Gas Enterprises, 1-800-225-7647 or 1-810-987-2200 ext. 4162

"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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