**NEWS
      RELEASE**








FOR
      IMMEDIATE RELEASE      FOR
      MORE
      INFORMATION


October
      26, 2006       Contact:
      Mark Knox, re: N-966


630
      388-2529





**NICOR
      Completes Syndicated Revolving Credit Facility**





Naperville,
      IL - Nicor Inc. (NYSE:GAS) today announced the establishment of a syndicated
      revolving credit facility. The new facility is a $400 million, 210-day seasonal
      revolver expiring in May 2007, available to Nicor Gas, the company’s gas
      distribution business. The new facility replaces a similar revolver that expired
      in April 2006. In addition to the newly established facility, the company has
      an
      existing $600 million, 5-year revolver available to Nicor Inc. and Nicor Gas,
      which expires in September 2010. The two facilities, totaling $1 billion, serve
      as backup for the issuance of commercial paper, accommodating the company’s
      short-term borrowing needs.





The
      new
      facility included a total of 13 lenders and was arranged by J.P. Morgan
      Securities Inc. and ABN AMRO Incorporated.





Nicor
      Inc. (NYSE: GAS) is a holding company and is a member of the Standard &
Poor’s 500 Index. Its principal businesses are Nicor Gas, one of the nation’s
      largest natural gas distribution companies, and Tropical Shipping, a
      containerized shipping business serving the Caribbean region and the Bahamas.
      Nicor also owns and has an equity interest in several energy-related businesses.
      For more information, visit the Nicor Web site at www.nicor.com .


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**Caution
      Concerning Forward-Looking Statements**


This
      document includes certain forward-looking statements about the expectations
      of
      Nicor and its subsidiaries and affiliates. Although Nicor believes these
      statements are based on reasonable assumptions, actual results may vary
      materially from stated expectations. Such forward-looking statements may be
      identified by the use of forward-looking words or phrases such as “anticipate,”
“believe,” “expect,” “intend,” “may,” “planned,” “potential,” “should,” “will,”
“would,” “project,” “estimate,” “ultimate,” or similar phrases. Actual results
      may differ materially from those indicated in the company’s forward-looking
      statements due to the direct or indirect effects of legal contingencies
      (including litigation) and the resolution of those issues, including the effects
      of an ICC review and SEC and U.S. Attorney inquiries, and undue reliance should
      not be placed on such statements.





Other
      factors that could cause materially different results include, but are not
      limited to, weather conditions; natural disasters; natural gas and other fuel
      prices; fair value accounting adjustments; inventory valuation; health care
      costs; insurance costs or recoveries; legal costs; borrowing needs; interest
      rates; credit conditions; economic and market conditions; tourism and
      construction in the Bahamas and Caribbean region; energy conservation;
      legislative and regulatory actions; tax rulings or audit results; asset sales;
      significant unplanned capital needs; future mercury-related charges or credits;
      changes in accounting principles, interpretations, methods, judgments or
      estimates; performance of major suppliers and contractors; labor relations;
      and
      acts of terrorism.





Readers
      are cautioned not to place undue reliance on these forward-looking statements,
      which speak only as of the date of this release. Nicor undertakes no obligation
      to publicly release any revision to these forward-looking statements to reflect
      events or circumstances after the date of this release.


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