Trillium CNG

Integrys Energy Group, Inc. Announces the Acquisition of Two Compressed Natural Gas Fueling Businesses

Integrys Energy Group, Inc. announced today the acquisition of two operating businesses involved in the compressed natural gas (CNG) fueling business, Pinnacle CNG Systems and Trillium USA, previously owned by Wagner & Brown, Ltd. The transaction allows Integrys Energy Group to enter the CNG fueling marketplace, bring demonstrated capability to customers and enable market growth.

"Expansion into this business is consistent with our mission of providing customers with the best value in energy and related services," said Integrys chairman, president and chief executive officer Charlie Schrock. "Our decision to enter this market is in response to customer needs, and this is complementary to our existing skill sets in regulated and nonregulated natural gas and electric services."

Use of CNG as a transportation fuel is growing because it is economical and clean-burning. It also capitalizes on the abundant supply of domestic natural gas.

Expanding into the CNG fueling business via this acquisition brings Integrys Energy Group several benefits. These include the ability to build on the 20-year experience base of these established companies, use of existing refueling station operating infrastructure, and market reputation built on their years of demonstrated capability and reliable performance.

The acquisition also allows Integrys to take advantage of the broad-based capability at all stages of the CNG value chain of Pinnacle and Trillium, from refueling equipment design and manufacturing, station design, engineering and construction, and ongoing operation and maintenance services.

"Together, Integrys Energy Group, Trillium and Pinnacle have the natural gas industry, CNG engineering, manufacturing and operating services expertise unmatched in the industry," added Schrock.

The acquisition is expected to provide a significant advantage as the CNG market continues to evolve. According to Natural Gas Vehicles for America, there are more than 12 million natural gas vehicles (NGVs) in use worldwide, including 110,000 operating in the United States. The International Association of Natural Gas Vehicles estimates that there will be more than 50 million NGVs worldwide within the next 10 years, or about 9 percent of the world transportation fleets (from http://www.ngvc.org/mktplace/index.html).

The transaction consideration was all cash, with Integrys Energy Group acquiring all the outstanding common stock and membership interest of Pinnacle and Trillium. Pinnacle and Trillium will be subsidiaries of Integrys Transportation Fuels, LLC, which will hold Integrys' CNG business activities. The subsidiaries are marketing under the existing names in current markets. The acquisition is not expected to have a material impact on the 2011 financial results for Integrys Energy Group.

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