----

----

| ·   | Gas      distribution operating income increased $6.9 million for the second      quarter 2008 compared to the prior-year period.  The quarter      reflected: |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      positive impact of higher demand unrelated to weather in 2008      (approximately $3 million); and the impact of customer interest      (approximately $3 million). |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Lower      operating and maintenance costs ($2.4 million) due primarily to recoveries      of previously incurred costs and lower company use gas and      storage-related gas costs, partially offset by higher bad debt expense and      payroll and benefit-related costs. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Partially      offsetting these positive factors was the negative impact of higher      depreciation expense ($1.4million). |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | Gas      distribution operating income decreased $1.7 million for the six months      ended June 30, 2008 compared to the prior-year period.  The      six-month results reflected: |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      absence of mercury-related recoveries recorded last year ($8.0      million). |
|--------|---|----------------------------------------------------------------------------------------|

|   | - | Higher      operating and maintenance costs ($6.5 million) due primarily to increased      bad debt expense, partially offset by lower company use gas and      storage-related gas costs and the aforementioned cost recoveries recorded      in the second quarter 2008; and higher depreciation expense ($2.7      million). |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Partially      offsetting these negative factors was the positive impact of increased      natural gas deliveries due to colder weather in 2008 (approximately $7      million); the impact of customer interest (approximately $5 million); and      the positive impact of higher demand unrelated to weather (approximately      $4 million). |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Shipping      operating income decreased $2.6 million and $8.6 million for the second      quarter 2008 and the six months ended June 30, 2008, respectively,      compared to the corresponding prior-year      periods.    Declines in both periods were due to      higher operating costs, partially offset by higher      revenues.   Increased operating costs for both 2008      periods, compared to 2007, were attributable to higher      transportation-related costs, due primarily to increased fuel      costs.  Increased revenues for both 2008 periods, compared to      2007, were attributable to higher average rates (due primarily to      surcharges for fuel), partially offset by lower volumes      shipped. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other      energy ventures operating income increased $3.0 million for the second      quarter 2008 compared to the prior-year period due to improved operating      results in the company’s wholesale natural gas marketing business;      partially offset by lower operating results in the company’s retail      energy-related products and services businesses.  Other      energy-related ventures operating income increased $6.7 million for the      six months ended June 30, 2008 compared to the prior-year period due to      higher operating results in the company’s retail energy-related products      and services businesses; partially offset by lower operating results in      the company’s wholesale natural gas marketing  business. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | Corporate      operating results increased $3.4 million for the second quarter 2008      compared to the prior year period due primarily to recoveries of      previously incurred legal costs of $3.1 million pretax. Corporate      operating results increased $0.9 million for the six months ended June 30,      2008 compared to the prior year period reflecting the aforementioned legal      cost recoveries; offset by a negative weather-related impact associated      with certain of the company’s retail utility-bill management products of      $4.0 million pretax, compared to a negative weather impact in the 2007      six-month period of $0.1 million pretax. Under terms of a corporate swap      agreement, benefits or costs resulting from variances in normal weather      associated with retail energy-related products are recorded primarily in      corporate operating results. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | The      second quarter 2008 and six months ended June 30, 2008 financial results      were also favorably impacted by lower net interest costs and higher pretax      net equity investment income. Net interest costs decreased $1.0      million for the second quarter 2008 compared to the prior-year period due      primarily to lower estimated interest on tax-related      matters.  Net interest costs decreased $4.2 million for the six      months ended June 30, 2008 compared to the prior-year period due to lower      estimated interest on tax-related matters, lower average interest rates      and lower average borrowing levels. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net      income for the second quarter 2008 and the six months ended June 30, 2008      were also favorably impacted by changes in its effective income tax rate      compared to the same periods in2007. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |
|--------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|--------|--------|--------|--------|---------|--------|
| Nicor      Inc.                                                                            |   |                    |   |   |                  |   |   |   |   |   |    |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |
| PRELIMINARY      CONSOLIDATED STATEMENTS OF OPERATIONS                                     |   |                    |   |   |                  |   |   |
| Unaudited      (millions, except per share data)                                           |   |                    |   |   |                  |   |   |   |   |   |    |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |
|                                                                                       |   | Three      months ended |   |   | Six      months ended |   |
|                                                                                       |   | June      30            |   |   | June      30          |   |
|                                                                                       |   | 2008                    |   |   | 2007                  |   |   | 2008   |   |   | 2007    |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |
| Operating      revenues                                                                    |   |                    |   |   |                  |   |   |   |   |   |    |   |
|     Gas      distribution                                              |   | $                       | 560.1  |   |                  | $      | 431.4  |   |   | $      | 2,024.3 |   |   | $ | 1,639.8 |   |
|     Shipping                                                           |   |                    | 102.6  |   |                  |   | 97.0   |   |   |   | 200.3   |   |   |   | 196.1 |   |
|     Other      energy ventures                                         |   |                    | 52.7   |   |                  |   | 45.1   |   |   |   | 122.9   |   |   |   | 121.7 |   |
|     Corporate      and eliminations                                    |   |                    | (15.6  | )      |                  |   | (16.6  | )      |   |   | (52.0   | )      |   |   | (66.0 | ) |
|                                                                                       |   | $                       | 699.8  |   |                  | $      | 556.9  |   |   | $      | 2,295.5 |   |   | $ | 1,891.6 |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
| Operating      expenses                                                                    |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
|      Gas      distribution                                        |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
|          Cost      of gas                     |   |                    | 396.2  |   |                  |   | 281.6  |   |   |   | 1,582.9 |   |   |   | 1,230.0 |   |
|          Operating      and maintenance       |   |                    | 59.7   |   |                  |   | 62.1   |   |   |   | 148.3   |   |   |   | 141.8 |   |
|          Depreciation                         |   |                    | 42.9   |   |                  |   | 41.5   |   |   |   | 85.7    |   |   |   | 83.0 |   |
|          Taxes,      other than income taxes  |   |                    | 40.6   |   |                  |   | 33.2   |   |   |   | 124.4   |   |   |   | 109.1 |   |
|          Mercury-related      recoveries, net |   |                    | -      |   |                  |   | -      |   |   |   | -       |   |   |   | (8.0 | ) |
|          Property      sale gains             |   |                    | -      |   |                  |   | (.8    | )      |   |   | -       |   |   |   | (.8 | ) |
|      Shipping                                                     |   |                    | 96.9   |   |                  |   | 88.7   |   |   |   | 190.7   |   |   |   | 177.9 |   |
|      Other      energy ventures                                   |   |                    | 41.7   |   |                  |   | 37.1   |   |   |   | 110.9   |   |   |   | 116.4 |   |
|      Other      corporate expenses and eliminations               |   |                    | (18.8  | )      |                  |   | (16.4  | )      |   |   | (51.2   | )      |   |   | (64.3 | ) |
|      Total      operating expenses                                |   |                    | 659.2  |   |                  |   | 527.0  |   |   |   | 2,191.7 |   |   |   | 1,785.1 |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
| Operating      income (1)                                                                  |   |                    | 40.6   |   |                  |   | 29.9   |   |   |   | 103.8   |   |   |   | 106.5 |   |
| Interest      expense, net of amounts capitalized                                          |   |                    | 9.1    |   |                  |   | 10.1   |   |   |   | 19.7    |   |   |   | 23.9 |   |
| Equity      investment income, net                                                         |   |                    | 2.8    |   |                  |   | 1.2    |   |   |   | 4.3     |   |   |   | 2.0 |   |
| Interest      income                                                                       |   |                    | 4.2    |   |                  |   | 3.2    |   |   |   | 5.5     |   |   |   | 4.8 |   |
| Other      income, net                                                                     |   |                    | .2     |   |                  |   | -      |   |   |   | .2      |   |   |   | .2 |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
| Income      before income taxes                                                            |   |                    | 38.7   |   |                  |   | 24.2   |   |   |   | 94.1    |   |   |   | 89.6 |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
| Income      tax expense                                                                    |   |                    | 9.8    |   |                  |   | 6.2    |   |   |   | 23.8    |   |   |   | 24.4 |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
| Net      income                                                                            |   | $                       | 28.9   |   |                  | $      | 18.0   |   |   | $      | 70.3    |   |   | $ | 65.2 |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
| Average      shares of common stock outstanding                                            |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
|       Basic                                                  |   |                    | 45.3   |   |                  |   | 45.2   |   |   |   | 45.3    |   |   |   | 45.1 |   |
|       Diluted                                                |   |                    | 45.3   |   |                  |   | 45.3   |   |   |   | 45.3    |   |   |   | 45.2 |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
| Earnings      per average share of common stock                                            |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
|       Basic                                                  |   | $                       | .64    |   |                  | $      | .40    |   |   | $      | 1.55    |   |   | $ | 1.45 |   |
|       Diluted                                                |   | $                       | .64    |   |                  | $      | .40    |   |   | $      | 1.55    |   |   | $ | 1.44 |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
| (1)  Operating      income (loss) by business segment                            |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
|     Gas      distribution                                              |   | $                       | 20.7   |   |                  | $      | 13.8   |   |   | $      | 83.0    |   |   | $ | 84.7 |   |
|     Shipping                                                           |   |                    | 5.7    |   |                  |   | 8.3    |   |   |   | 9.6     |   |   |   | 18.2 |   |
|     Other      energy ventures                                         |   |                    | 11.0   |   |                  |   | 8.0    |   |   |   | 12.0    |   |   |   | 5.3 |   |
|     Corporate      and eliminations                                    |   |                    | 3.2    |   |                  |   | (.2    | )      |   |   | (.8     | )      |   |   | (1.7 | ) |
|                                                                                       |   | $                       | 40.6   |   |                  | $      | 29.9   |   |   | $      | 103.8   |   |   | $ | 106.5 |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |
|                                                                                       |   |                    |   |   |                  |   |   |   |   |   |    |   |   |   |   |   |

----

| Nicor      Inc.                                                                                                                                                                                                                               |   |                    |   |   | Preliminary      Operating Statistics Page 1 of 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|--------------------------------------------------------|--------|
| Gas      Distribution                                                                                                                                                                                                                         |   |                    |   |   |                                                   |   |   |   |   |   |   |   |
| Unaudited                                                                                                                                                                                                                                     |   |                    |   |   |                                                   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                          |   | Three      months ended |   |   | Six      months ended                                  |   |
|                                                                                                                                                                                                                                          |   | June      30            |   |   | June      30                                           |   |
|                                                                                                                                                                                                                                          |   | 2008                    |   |   | 2007                                                   |   |   | 2008 |   |   | 2007 |   |
| Operating      revenues (millions)                                                                                                                                                                                                            |   |                    |   |   |                                                   |   |   |   |   |   |   |   |
|   Sales      - Residential                                                                                                                                                                                                          |   | $                       | 363.1  |   |                                                   | $      | 282.4 |   |   | $ | 1,376.3 |   |   | $ | 1,120.2 |   |
|                     Commercial                                                                                                                                          |   |                    | 101.9  |   |                                                   |   | 73.7 |   |   |   | 351.6 |   |   |   | 268.9 |   |
|                     Industrial                                                                                                                                          |   |                    | 11.1   |   |                                                   |   | 7.7 |   |   |   | 42.1 |   |   |   | 31.5 |   |
|                                                                                                                                                                                                                                          |   |                    | 476.1  |   |                                                   |   | 363.8 |   |   |   | 1,770.0 |   |   |   | 1,420.6 |   |
|   Transportation      -   Residential                                                                                                                                                                                |   |                    | 8.0    |   |                                                   |   | 6.0 |   |   |   | 21.2 |   |   |   | 15.6 |   |
|                                        Commercial                        |   |                    | 11.8   |   |                                                   |   | 12.2 |   |   |   | 43.0 |   |   |   | 41.1 |   |
|                                        Industrial                        |   |                    | 7.6    |   |                                                   |   | 7.4 |   |   |   | 19.4 |   |   |   | 18.7 |   |
|                                        Other                             |   |                    | 5.5    |   |                                                   |   | 1.3 |   |   |   | 22.7 |   |   |   | 9.3 |   |
|                                                                                                                                                                                                                                          |   |                    | 32.9   |   |                                                   |   | 26.9 |   |   |   | 106.3 |   |   |   | 84.7 |   |
|   Other      revenues -   Revenue taxes                                                                                                                                                                              |   |                    | 36.7   |   |                                                   |   | 28.9 |   |   |   | 117.0 |   |   |   | 101.2 |   |
|                                         Environmental cost recovery |   |                    | 1.1    |   |                                                   |   | 1.6 |   |   |   | 6.1 |   |   |   | 7.1 |   |
|                                         Chicago Hub                 |   |                    | 2.5    |   |                                                   |   | 2.2 |   |   |   | 5.9 |   |   |   | 9.7 |   |
|                                         Other                       |   |                    | 10.8   |   |                                                   |   | 8.0 |   |   |   | 19.0 |   |   |   | 16.5 |   |
|                                                                                                                                                                                                                                          |   |                    | 51.1   |   |                                                   |   | 40.7 |   |   |   | 148.0 |   |   |   | 134.5 |   |
|                                                                                                                                                                                                                                          |   | $                       | 560.1  |   |                                                   | $      | 431.4 |   |   | $ | 2,024.3 |   |   | $ | 1,639.8 |   |
| Deliveries      (Bcf)                                                                                                                                                                                                                         |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
|   Sales      - Residential                                                                                                                                                                                                          |   |                    | 26.1   |   |                                                   |   | 24.9 |   |   |   | 130.3 |   |   |   | 124.7 |   |
|                     Commercial                                                                                                                                          |   |                    | 7.9    |   |                                                   |   | 7.1 |   |   |   | 33.7 |   |   |   | 30.4 |   |
|                     Industrial                                                                                                                                          |   |                    | .9     |   |                                                   |   | .7 |   |   |   | 4.2 |   |   |   | 3.7 |   |
|                                                                                                                                                                                                                                          |   |                    | 34.9   |   |                                                   |   | 32.7 |   |   |   | 168.2 |   |   |   | 158.8 |   |
|   Transportation      -  Residential                                                                                                                                                                                      |   |                    | 3.1    |   |                                                   |   | 2.4 |   |   |   | 14.8 |   |   |   | 11.7 |   |
|                                       Commercial                              |   |                    | 11.7   |   |                                                   |   | 11.7 |   |   |   | 52.2 |   |   |   | 48.5 |   |
|                                  Industrial                              |   |                    | 23.1   |   |                                                   |   | 23.6 |   |   |   | 55.4 |   |   |   | 56.4 |   |
|                                                                                                                                                                                                                                          |   |                    | 37.9   |   |                                                   |   | 37.7 |   |   |   | 122.4 |   |   |   | 116.6 |   |
|                                                                                                                                                                                                                                          |   |                    | 72.8   |   |                                                   |   | 70.4 |   |   |   | 290.6 |   |   |   | 275.4 |   |
|                                                                                                                                                                                                                                          |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Degree      days                                                                                                                                                                                                                              |   |                    | 690    |   |                                                   |   | 636 |   |   |   | 3,962 |   |   |   | 3,654 |   |
| Colder      (warmer) than normal                                                                                                                                                                                                              |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
|          Degree days                                                                                                                                                                                                           |   |                    | 3      |   |                                                   |   | (51 | ) |   |   | 275 |   |   |   | (33 | ) |
|          Percent (1)                                                                                                                                                                                                           |   |                    | 0      |   |                                                   |   | (7 | ) |   |   | 7 |   |   |   | (1 | ) |
|                                                                                                                                                                                                                                          |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Average      gas cost per Mcf sold                                                                                                                                                                                                            |   | $                       | 11.29  |   |                                                   | $      | 8.56 |   |   | $ | 9.37 |   |   | $ | 7.65 |   |
|                                                                                                                                                                                                                                          |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Customers      at June 30 (thousands)                                                                                                                                                                                                         |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
|   Sales      -  Residential                                                                                                                                                                                               |   |                    | 1,777  |   |                                                   |   | 1,799 |   |   |   |   |   |   |   |   |   |
|                      Commercial                                                                                                                                    |   |                    | 128    |   |                                                   |   | 125 |   |   |   |   |   |   |   |   |   |
|                 Industrial                                                                                                                                    |   |                    | 7      |   |                                                   |   | 7 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                          |   |                    | 1,912  |   |                                                   |   | 1,931 |   |   |   |   |   |   |   |   |   |
|   Transportation      -  Residential                                                                                                                                                                                      |   |                    | 205    |   |                                                   |   | 169 |   |   |   |   |   |   |   |   |   |
|                                       Commercial                              |   |                    | 53     |   |                                                   |   | 55 |   |   |   |   |   |   |   |   |   |
|                                  Industrial                              |   |                    | 5      |   |                                                   |   | 6 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                          |   |                    | 263    |   |                                                   |   | 230 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                          |   |                    | 2,175  |   |                                                   |   | 2,161 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                          |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| (1)      Normal weather for Nicor Gas' service territory, for the purposes of this      report, is considered to be 5,830 degree days per year.                                                                                               |   |
|                                                                                                                                                                                                                                          |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                          |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |

----

| Nicor      Inc.                                  |   |                    |   |   | Preliminary      Operating Statistics Page 2 of 2 |   |
|--------------------------------------------------|--------|-------------------------|--------|--------|--------------------------------------------------------|--------|
| Shipping                                         |   |                    |   |   |                                                   |   |   |   |   |   |   |   |
| Unaudited                                        |   | Three      months ended |   |   | Six      months ended                                  |   |
|                                             |   | June      30            |   |   | June      30                                           |   |
|                                             |   | 2008                    |   |   | 2007                                                   |   |   | 2008 |   |   | 2007 |   |
|                                             |   |                    |   |   |                                                   |   |   |   |   |   |   |   |
| Twenty-foot      equivalent units (TEU)          |   |                    |   |   |                                                   |   |   |   |   |   |   |   |
|     shipped      (thousands) |   |                    | 48.8   |   |                                                   |   | 50.5 |   |   |   | 96.8 |   |   |   | 101.3 |   |
|                                             |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue      per TEU                             |   | $                       | 2,098  |   |                                                   | $      | 1,923 |   |   | $ | 2,068 |   |   | $ | 1,936 |   |
|                                             |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Ports      served                                |   |                    | 25     |   |                                                   |   | 27 |   |   |   |   |   |   |   |   |   |
|                                             |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Vessels      operated                            |   |                    | 17     |   |                                                   |   | 18 |   |   |   |   |   |   |   |   |   |
|                                             |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |                    |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |