NEWS RELEASE                                                                                                           

Contact:

Justin Gioia – (314) 342-0865

jgioia@lacledegas.com

Laclede Group Announces Strong First Nine Months Earnings

Company Also Declares Quarterly Dividend

ST. LOUIS (July 31, 2009) -- The Laclede Group, Inc. (NYSE: LG) today announced earnings results for its first nine months and third quarter of fiscal 2009, both of which ended June 30, 2009.  Additionally, the Company declared a quarterly dividend of 38 ½ cents per share on its common stock, payable October 1, 2009 to shareholders of record on September 11, 2009.

Consolidated income from continuing operations for the first nine months of fiscal 2009 demonstrated solid year-over-year growth by increasing 14 percent to $69.0 million, or $3.13 diluted earnings per share, when compared to $60.7 million, or $2.80 diluted earnings per share, for the same period last year.  This increase was principally due to the growth in earnings of Laclede Energy Resources, Inc. (LER), Laclede Group’s non-regulated natural gas commodity service provider.  The results for the first three quarters of fiscal 2008 included $2.9 million, or $0.13 diluted earnings per share, in certain tax-related benefits.

Last year’s results for the first three quarters also included the effects of the operations, and the March 31, 2008 sale, of The Laclede Group’s wholly owned subsidiary, SM&P Utility Resources, Inc. (SM&P), which contributed $0.96 diluted earnings per share in the 2008 period. As a result, Laclede Group reported total earnings of $81.5 million, or $3.76 diluted earnings per share, on an as-reported basis for the first three quarters of 2008.

Consolidated income for the three months ended June 30, 2009 was $6.9 million, or $0.31 diluted earnings per share, compared to consolidated net income of $9.3 million, or $0.42 diluted earnings per share, for the same quarter last year. A return to more seasonable weather during the just-ended quarter, as compared to significantly cooler than normal weather experienced during the same quarter in 2008, drove lower weather-related sales volumes at the Company’s regulated natural gas distribution utility.

“The operations and performance of our utility and non-regulated natural gas businesses remain strong, as we continue to improve and expand those platforms,” said Douglas H. Yaeger, chairman, president and chief executive officer of The Laclede Group.  “While

third quarter earnings were lower than last year, our year-to-date earnings from continuing operations reflect year-over-year growth.  The stability of our customer base at the utility, which reflects the economic diversity and strength of our service area, provides a solid foundation for the Company.  LER complements the utility, demonstrating continued growth in sales volumes in an increasingly competitive environment, even as sales margins have begun to narrow to more traditional levels.”

RESULTS OF OPERATIONS

Laclede Energy Resources

LER reported earnings totaling $4.3 million, or $0.19 diluted earnings per share, for the fiscal 2009 third quarter, which was essentially the same as the year-ago quarter.  Earnings for the most recent quarter reflect higher sales volumes of natural gas, offset by decreased sales margins.  The lower margins were driven primarily by the construction and operation of new pipelines moving natural gas from the West to the East.

For the first three quarters of 2009, LER reported earnings of $27.5 million, an increase of $12.7 million when compared to the same nine-month period last year. This represents a contribution of $1.25 to consolidated diluted earnings per share for the period this year as compared to $0.68 per share for the comparable period last year.

LER’s higher earnings in the nine-month period reflect its strategic acquisition of additional firm pipeline transportation capacity prior to the 2008-2009 winter.  This capacity, along with lower natural gas prices, supported higher sales volumes and greater margins this year when compared to the same period last year.  Last year’s results for the nine months ending June 30 also reflected the impact of $1.4 million, or $0.07 diluted earnings per share, in certain tax-related benefits.

Laclede Gas Company

Laclede Gas Company, The Laclede Group’s core subsidiary and Missouri’s largest natural gas distribution utility, reported an earnings decrease to $2.3 million for the third quarter, compared to $5.5 million for the same quarter last year. Laclede Gas contributed $0.11 to diluted earnings per share for the third quarter of fiscal 2009 compared to $0.25 diluted earnings per share for the third quarter of fiscal 2008.  As discussed previously, the earnings results in the quarter reflected a decrease in sales volumes due to a return to near normal weather conditions during the period this year.

Laclede Gas reported lower earnings of $40.7 million for the first three quarters of fiscal 2009, compared with earnings of $46.6 million for the same period last year. The utility contributed $1.85 to consolidated diluted earnings per share for the nine-month period this year as compared to $2.15 diluted earnings per share for the comparable period last year. The decrease in earnings was primarily attributable to increased operating and maintenance expenses, partially offset by higher revenue generated by the Infrastructure System Replacement Surcharge (ISRS).  Last year’s results for the period also reflected the impact of $1.5 million, or $0.07 diluted earnings per share, in certain tax-related benefits.

Laclede Gas granted ISRS increase, to provide additional offset to increased operating and maintenance costs

On July 15, 2009, the Missouri Public Service Commission approved a $2.5 million annual increase to Laclede Gas Company’s ISRS.  The ISRS recovers a portion of the costs that Laclede Gas must incur to maintain and upgrade its distribution system and to relocate facilities in connection with local, state and federal public improvement projects and safety requirements.  The adjustment went into effect on July 16, 2009.

ABOUT THE LACLEDE GROUP

Headquartered in St. Louis, Missouri, The Laclede Group, Inc. is a public utility holding company committed to providing reliable natural gas service through its regulated core utility operations, while also engaging in non-regulated activities that provide opportunities for sustainable growth. Its subsidiary Laclede Gas Company, the regulated operations of which are included in the Regulated Gas Distribution segment, serves approximately 630,000 residential, commercial and industrial customers in the city of St. Louis, St. Louis County and nine other counties in Eastern Missouri. Laclede Group's primary non-regulated business, Laclede Energy Resources, Inc., is included in the Non-Regulated Gas Marketing segment and serves wholesale, large commercial and industrial customers throughout the Midwest. For more information about Laclede Group and its subsidiaries, visit www.thelacledegroup.com.

The Laclede Group’s earnings are seasonal in nature and generally correspond with the heating season for Laclede Gas Company, its largest subsidiary.

For additional details on The Laclede Group’s fiscal 2009 third-quarter and year-to-date results, please see the accompanying unaudited Statements of Consolidated Income.

CAUTIONARY STATEMENTS ON FORWARD-LOOKING INFORMATION

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, governmental and regulatory policy and action, the competitive environment and economic factors. For a more complete description of these uncertainties and risk factors, see the Company's Form 10-Q for the period ended March 31, 2009, filed with the Securities and Exchange Commission.

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UNAUDITED

STATEMENTS OF CONSOLIDATED INCOME

THE LACLEDE GROUP, INC.

(Thousands, Except Per Share Amounts)

			Three Months Ended June 30,					Nine Months Ended June 30,
			2009		2008			2009		2008
OPERATING REVENUES
		Regulated Gas Distribution	$	160,332	$	189,598		$	958,901	$	1,017,579
		Non-Regulated Gas Marketing		148,442		314,646			681,071		735,831
		Other		1,170		1,244			3,296		3,774
		Total Operating Revenues		309,944		505,488			1,643,268		1,757,184
OPERATING EXPENSES
		Regulated Gas Distribution
		Natural and propane gas		87,841		112,896			656,244		713,263
		Other operation expenses		33,900		34,285			110,452		108,487
		Maintenance		6,659		6,543			20,454		18,592
		Depreciation and amortization		9,190		8,819			27,489		26,295
		Taxes, other than income taxes		13,821		14,549			60,395		60,485
		Total Regulated Gas Distribution Operating Expenses		151,411		177,092			875,034		927,122
		Non-Regulated Gas Marketing		141,512		308,035			637,600		714,928
		Other		818		1,102			2,503		3,815
		Total Operating Expenses		293,741		486,229			1,515,137		1,645,865
Operating Income				16,203		19,259			128,131		111,319
Other Income and (Income Deductions) - Net				1,331		(836	)		2,317		2,889
Interest Charges:
		Interest on long-term debt		6,146		4,876			18,437		14,877
		Interest on long-term debt to unconsolidated affiliate trust		—		347			—		486
		Other interest charges		737		1,189			4,551		7,408
		Total Interest Charges		6,883		6,412			22,988		22,771
Income from Continuing Operations Before Income Taxes
		and Dividends on Laclede Gas Redeemable Preferred Stock		10,651		12,011			107,460		91,437
Income Tax Expense				3,774		2,902			38,451		30,713
Dividends on Laclede Gas Redeemable Preferred Stock				—		8			15		27
Income from Continuing Operations				6,877		9,101			68,994		60,697
Income from Discontinued Operations, Net of Income Tax				—		158			—		20,819
Net Income			$	6,877	$	9,259		$	68,994	$	81,516
Average Number of Common Shares Outstanding:
	Basic			21,904		21,701			21,884		21,614
	Diluted			22,018		21,815			22,016		21,707
Basic Earnings Per Share of Common Stock:
		Income from Continuing Operations	$	0.31	$	0.42		$	3.15	$	2.81
		Income from Discontinued Operations		—		0.01			—		0.96
		Net Income	$	0.31	$	0.43		$	3.15	$	3.77
Diluted Earnings Per Share of Common Stock:
		Income from Continuing Operations	$	0.31	$	0.41		$	3.13	$	2.80
		Income from Discontinued Operations		—		0.01			—		0.96
		Net Income	$	0.31	$	0.42		$	3.13	$	3.76