SANDELL SUPPORTS SOUTHERN UNION COMPANY'S ACTIONS TO IMPROVE SHAREHOLDER VALUE
THROUGH ITS RECENT STRATEGIC PLAN

NEW YORK, March 1 -- Sandell Asset Management Corp. ("Sandell") today announced
that it supports Southern Union Company's (NYSE:SUG; the "Company") strategic
plan for 2007 and beyond as laid out today in connection with the Company's
quarterly earnings announcement. In addition to the details around the Company's
operating initiatives, the plan calls for many of the value enhancing measures
suggested by Sandell, including the creation of a master limited partnership and
the consideration of returning capital to shareholders when appropriate. In
light of Southern Union's adopting this encouraging strategic plan, Sandell is
withdrawing its nomination of an alternate slate of directors in connection with
the Company's upcoming annual meeting of stockholders.

Tom Sandell, the CEO and Senior Portfolio Manager of Sandell stated, "As the
largest individual shareholder of Southern Union, we are pleased with the
company's strategic plan. We have always believed in the quality of Southern
Union's assets and the strength of its cash flow. We commend management for
acting positively to our concerns and suggestions to enhance value for all
shareholders. While we believe Southern Union currently remains undervalued, we
are hopeful that the effective and timely execution of this plan will go a long
way toward addressing this situation. We therefore look forward to seeing the
company follow through on these initiatives in the near term."