BRITISH GAS TO PURCHASE TORONTO GAS UTILITY

March 12, 1990

British Gas, London, plans to hike its Canadian assets via an offer of $1.108 billion (Canadian) or more for the common stock of Consumers Gas Co. Ltd., Toronto. British Gas will make the offer after receiving regulatory approvals, probably in several months. G W Utilities Ltd., Toronto, which owns 82% of Consumers common stock, agreed to accept the British offer of $34/share. Consumers is a utility that serves more than 1 million customers in Ontario, Quebec, and New York state. The value of

British Gas, London, plans to hike its Canadian assets via an offer of $1.108 billion (Canadian) or more for the common stock of Consumers Gas Co. Ltd., Toronto.

British Gas will make the offer after receiving regulatory approvals, probably in several months. G W Utilities Ltd., Toronto, which owns 82% of Consumers common stock, agreed to accept the British offer of $34/share.

Consumers is a utility that serves more than 1 million customers in Ontario, Quebec, and New York state.

The value of the offer will increase under several circumstances.

British Gas, privatized by the British government in December 1988, also purchased an equity interest in Bow Valley Industries, Calgary, late in 1988. British Gas is the western world's largest integrated gas business with 17 million customers.