SOUTHERN UNION AND SANDELL ASSET MANAGEMENT REACH AGREEMENT

     HOUSTON, TEXAS. (MARCH 5, 2009) - Southern Union Company (NYSE: SUG) and
Sandell Asset Management Corp. ("Sandell"), affiliates of which own 8.6% of the
Company's outstanding shares, today announced that they have reached an
agreement that will avoid a proxy contest at the Company's 2009 annual meeting
of stockholders.

     The settlement agreement, which will be incorporated into a report on Form
8-K to be filed by Southern Union, provides that two candidates previously
nominated by Sandell to the Board of Directors of Southern Union will be
nominated for election at the 2009 and 2010 annual meetings in addition to the
current members of the Board. Also, as part of the settlement, Sandell has
agreed to abide by certain standstill provisions.

     "We are pleased that this matter has been resolved in a manner that serves
the best interests of all Southern Union stockholders," said Eric D. Herschmann,
President and Chief Operating Officer of Southern Union. "This agreement will
enable Southern Union's management to focus its efforts on the Company's
operations and avoid a costly and time consuming proxy contest." Thomas Sandell
said, "We are pleased that we were able to work constructively with Southern
Union and reach an agreement to avoid a protracted proxy contest. We look
forward to working with the Company to maximize value for the benefit of all
shareholders. In that regard, we have always believed it is important for
Southern Union to maintain its investment grade rating. Therefore, in the
current economic environment, we do not believe the Company should undertake
extraordinary transactions such as the creation of an MLP, sales of LDC assets
or payment of a special dividend or increased dividends." ABOUT SOUTHERN UNION
COMPANY Southern Union Company, headquartered in Houston, is one of the nation's
leading diversified natural gas companies, engaged primarily in the
transportation, storage, gathering, processing and distribution of natural gas.
The company owns and operates one of the nation's largest natural gas pipeline
systems with approximately 20,000 miles of gathering and transportation
pipelines and North America's largest liquefied natural gas import terminal,
along with serving more than half a million natural gas end-user customers in
Missouri and Massachusetts. For further information, visit WWW.SUG.COM.

ABOUT SANDELL ASSET MANAGEMENT CORP.

     Sandell Asset Management Corp. (and affiliated companies), with offices in
New York, NY, London and Hong Kong, is a global investment management firm
founded by Thomas E. Sandell that focuses on corporate event driven investing
worldwide. Sandell often will take an "active involvement" in facilitating
financial or organizational improvements that will accrue to the benefit of
shareholders.

FORWARD-LOOKING STATEMENTS

     This release contains forward-looking statements relating to Southern Union
Company's settlement agreement with Sandell Asset Management Corp. The words
"believe," "expect," "intend," "anticipate," variations of such words, and
similar expressions identify forward-looking statements, but their absence does
not mean that the statement is not forward looking. Although Southern Union
believes that its expectations are based on reasonable assumptions, it can give
no assurance that such assumptions will materialize. Important factors that
could cause actual results to differ materially from those in the
forward-looking statements herein are enumerated in Southern Union's Forms 10-K
and 10-Q as filed with the Securities and Exchange Commission. Southern Union
assumes no obligation to publicly update or revise any forward-looking
statements made herein or any other forward-looking statements made by Southern
Union, whether as a result of new information, future events, or otherwise.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this release. Southern Union
undertakes no obligation to update publicly any forward-looking statements to
reflect new information, events or circumstances after the date of this release
or to reflect the occurrence of unanticipated events.

CONTACTS:

John F. Walsh                                Thomas Sandell
Vice President - Investor Relations          Chief Executive Officer
Southern Union Company                       Sandell Asset Management Corp.
212-659-3208                                 212/603-5700