SEMCO Announces Executive Change

FARMINGTON HILLS, Mich., Jan. 7 /PRNewswire-FirstCall/ -- SEMCO ENERGY (NYSE: SEN) today announced that Arthur L. Pendleton, President and Chief Operating Officer of SEMCO ENERGY's energy infrastructure construction division, is no longer with the Company. Pendleton had been with the firm since February 2002. Until a successor is named, Marcus Jackson, Chairman, President and Chief Executive Officer, will lead the unit.

SEMCO ENERGY, Inc. is a diversified energy and infrastructure company that distributes natural gas to more than 377,000 customers in Michigan and Alaska. It also owns and operates businesses involved in natural gas pipeline construction services, propane distribution and intrastate pipelines and natural gas storage in various regions of the United States. In addition, it provides information technology and outsourcing services, specializing in the mid-range computer market.

SOURCE SEMCO ENERGY, Inc.

"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.