New Chief Financial Officer Joins SEMCO ENERGY Leadership Team

PORT HURON, Mich., Jan. 5 /PRNewswire/ -- SEMCO ENERGY, Inc. (Nasdaq: SMGS) today announced that Sebastian Coppola has been appointed Senior Vice President and Chief Financial Officer. Coppola succeeds Robert L. Digan II, who resigned in October 1998.

SEMCO ENERGY Chairman, President and Chief Executive Officer William L. Johnson announced Coppola's appointment.

"I am delighted to have Seb Coppola join our management team at SEMCO ENERGY. Seb is uniquely equipped to extend the work we have begun to achieve SEMCO ENERGY's strategic and financial goals. His officer-level experience in finance, tax, accounting, investor relations and strategic planning will be instrumental in our quest to aggressively grow the company and build long-term shareholder value," Johnson said.

Coppola recently served as Senior Vice President of Finance, Treasurer and Investment Relations Officer of MCN ENERGY GROUP, Inc. His distinguished career in various managerial positions with MCN and its subsidiaries spanned nearly 24 years.

Mr. Coppola is a graduate of Wayne State University with a BA in Accounting and an MBA in Finance. He is a resident of Rochester Hills, Michigan.

SEMCO ENERGY is an energy-focused holding company with three subsidiaries: SEMCO ENERGY GAS COMPANY, a regulated natural gas distribution company with approximately 240,000 customers in Michigan; 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 construction, energy engineering and propane operations.
CONTACT: Media, Francis R. Lieder, Jr., 810-987-2200, ext. 4186, or Analyst, Edric R. Mason, Jr., 810-989-4104, 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.