----

| ·   | Gas distribution operating income decreased $27.3 million for the three months ended March 31, 2011 compared to the prior year period, due primarily to higher operating and maintenance expense ($19.8 million), lower gas distribution margin ($5.9 million) and higher depreciation expense ($1.1 million). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Operating and maintenance expense reflected the absence of the $31.7 million pre-tax benefit, recognized in the first quarter of 2010, associated with the implementation of a bad debt cost recovery rider.  The 2010 benefit was attributable to 2008’s and 2009’s net under-recovery of bad debt expense and was reported as a reduction in operating and maintenance expense (thereby increasing 2010 operating income).  Partially offsetting this unfavorable variance was lower bad debt expense incurred in 2011 (attributable to the $63 million annual benchmark for 2011) compared to 2010 ($2.6 million) and lower company use and storage-related gas costs ($1.1 million). |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  - | Gas distribution margin reflected increased natural gas deliveries due to colder weather in 2011 compared to 2010 (approximately $3 million).  Gas distribution margin also reflected lower revenue from the riders noted above ($8.0 million). |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Shipping operating results decreased $0.7 million for the first quarter 2011 compared to the same period in 2010 due to lower operating revenues, partially offset by lower operating expenses.  Lower operating revenues were due to lower volumes shipped, partially offset by higher average rates (attributable primarily to higher base rates and higher cost-recovery surcharges for fuel).  Lower operating expenses were due primarily to lower wages and benefits and lower transportation-related costs (due in part to lower volumes offset in part by higher fuel prices). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other energy ventures operating income increased $0.1 million for the three months ended March 31, 2011, compared to the prior year period, due to higher operating income at the company’s retail energy-related products and services businesses, partially offset by lower operating income at the company’s wholesale natural gas marketing business. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Corporate operating results declined $2.3 million for the first quarter 2011, compared to the same period in 2010, due primarily to current year merger transaction costs associated with the company’s proposed merger with AGL Resources Inc. (“AGL Resources”) ($1.5 million), and a higher weather-related cost.  The company recorded a $1.7 million pre-tax weather-related cost in the three months ended March 31, 2011, compared to a $1.3 million pre-tax weather-related cost recorded in the same period last year associated with certain of the company’s retail utility-bill management products.  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 three-months-ended March 31, 2011 financial results, compared to the prior year period, reflected higher pre-tax equity investment income due primarily to improved results from the company’s investment in Triton, a container leasing company.  First quarter comparisons also reflected a lower effective income tax rate in 2011 due primarily to an adjustment to reduce certain state income tax liabilities in the first quarter of 2011 and lower forecasted annual pre-tax income, partially offset by lower forecasted annual untaxed foreign shipping earnings and the 2011 increase to the Illinois state income tax rate. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| o   | the possibility that the company’s business may suffer as a result of the uncertainty surrounding the merger; |
|---------------|---------------------------------------------------------------------------------------------------------------------|

----

| o   | the possibility that AGL Resources and Nicor will not receive the regulatory approvals required to complete the merger or that the merger will not be consummated for other reasons; |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | the possibility of adverse decisions in pending and potential state and federal class action lawsuits, including shareholder suits, relating to the merger; |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | the possibility that the company may not be able to maintain relationships with its employees, suppliers, or customers as a result of the uncertainty surrounding the merger; and |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | the possibility that the merger agreement will be terminated under circumstances in which the company would incur termination payment obligations. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Nicor Inc.                                         |   |
|----------------------------------------------------|--------|
|                                               |   |   |   |   |   |   |
| PRELIMINARY CONSOLIDATED STATEMENTS OF INCOME      |   |   |   |   |   |   |
| Unaudited (millions, except per share data)        |   |   |   |   |   |   |
|                                               |   | Three months ended |   |
|                                               |   | March 31 |   |
|                                               |   | 2011 |   |   | 2010 |   |
| Operating revenues                                 |   |   |   |   |   |   |
| Gas distribution                                   |   | $ | 915.8 |   |   | $ | 1,068.8 |   |
| Shipping                                           |   |   | 80.8 |   |   |   | 83.5 |   |
| Other energy ventures                              |   |   | 63.0 |   |   |   | 65.7 |   |
| Corporate and eliminations                         |   |   | (22.6 | ) |   |   | (25.1 | ) |
| Total operating revenues                           |   |   | 1,037.0 |   |   |   | 1,192.9 |   |
|                                               |   |   |   |   |   |   |   |   |
| Operating expenses                                 |   |   |   |   |   |   |   |   |
| Gas distribution                                   |   |   |   |   |   |   |   |   |
| Cost of gas                                        |   |   | 640.0 |   |   |   | 787.9 |   |
| Operating and maintenance                          |   |   | 83.6 |   |   |   | 63.8 |   |
| Depreciation                                       |   |   | 47.1 |   |   |   | 46.0 |   |
| Taxes, other than income taxes                     |   |   | 79.2 |   |   |   | 77.9 |   |
| Shipping                                           |   |   | 82.0 |   |   |   | 84.0 |   |
| Other energy ventures                              |   |   | 58.5 |   |   |   | 61.3 |   |
| Other corporate expenses and eliminations          |   |   | (19.2 | ) |   |   | (24.0 | ) |
| Total operating expenses                           |   |   | 971.2 |   |   |   | 1,096.9 |   |
|                                               |   |   |   |   |   |   |   |   |
| Operating income (1)                               |   |   | 65.8 |   |   |   | 96.0 |   |
| Interest expense, net of amounts capitalized       |   |   | 6.9 |   |   |   | 9.0 |   |
| Equity investment income, net                      |   |   | 4.4 |   |   |   | 1.5 |   |
| Other income, net                                  |   |   | .4 |   |   |   | .4 |   |
|                                               |   |   |   |   |   |   |   |   |
| Income before income taxes                         |   |   | 63.7 |   |   |   | 88.9 |   |
| Income tax expense, net of benefits                |   |   | 18.5 |   |   |   | 28.4 |   |
|                                               |   |   |   |   |   |   |   |   |
| Net income                                         |   | $ | 45.2 |   |   | $ | 60.5 |   |
|                                               |   |   |   |   |   |   |   |   |
| Average shares of common stock outstanding         |   |   |   |   |   |   |   |   |
| Basic                                              |   |   | 45.9 |   |   |   | 45.4 |   |
| Diluted                                            |   |   | 45.9 |   |   |   | 45.6 |   |
|                                               |   |   |   |   |   |   |   |   |
| Earnings per average share of common stock         |   |   |   |   |   |   |   |   |
| Basic                                              |   | $  | .98 |   |   | $ | 1.33 |   |
| Diluted                                            |   |   | .98 |   |   |   | 1.33 |   |
|                                               |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |
| (1)  Operating income (loss) by business |   |   |   |   |   |   |   |   |
|     Gas distribution           |   | $ | 65.9 |   |   | $ | 93.2 |   |
|     Shipping                   |   |   | (1.2 | ) |   |   | (.5 | ) |
|     Other energy ventures      |   |   | 4.5 |   |   |   | 4.4 |   |
|     Corporate and eliminations |   |   | (3.4 | ) |   |   | (1.1 | ) |
|                                               |   | $ | 65.8 |   |   | $ | 96.0 |   |

----

| Nicor Inc.                                                                                                                        |   |               |   |   |   |   |    |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|--------|--------|---------|--------|
| Gas Distribution Statistics                                                                                                       |   |               |   |   |   |   |    |   |
|                                                                                                                              |   | Three months ended |   |
|                                                                                                                              |   | March 31           |   |
|                                                                                                                              |   |               | 2011   |   |   |   | 2010    |   |
| Operating revenues (millions)                                                                                                     |   |               |   |   |   |   |    |   |
| Sales                                                                                                                             |   |               |   |   |   |   |    |   |
| Residential                                                                                                                       |   | $                  | 603.3  |   |   | $      | 715.9   |   |
| Commercial                                                                                                                        |   |               | 153.9  |   |   |   | 185.3   |   |
| Industrial                                                                                                                        |   |               | 18.9   |   |   |   | 21.9    |   |
|                                                                                                                              |   |               | 776.1  |   |   |   | 923.1   |   |
| Transportation                                                                                                                    |   |               |   |   |   |   |    |   |
| Residential                                                                                                                       |   |               | 13.6   |   |   |   | 14.3    |   |
| Commercial                                                                                                                        |   |               | 24.9   |   |   |   | 24.6    |   |
| Industrial                                                                                                                        |   |               | 10.9   |   |   |   | 10.5    |   |
| Other                                                                                                                             |   |               | .7     |   |   |   | 1.4     |   |
|                                                                                                                              |   |               | 50.1   |   |   |   | 50.8    |   |
| Other revenues                                                                                                                    |   |               |   |   |   |   |    |   |
| Revenue taxes                                                                                                                     |   |               | 74.9   |   |   |   | 73.9    |   |
| Environmental cost recovery                                                                                                       |   |               | 5.6    |   |   |   | 6.9     |   |
| Chicago Hub                                                                                                                       |   |               | 1.1    |   |   |   | 1.5     |   |
| Other                                                                                                                             |   |               | 8.0    |   |   |   | 12.6    |   |
|                                                                                                                              |   |               | 89.6   |   |   |   | 94.9    |   |
|                                                                                                                              |   | $                  | 915.8  |   |   | $      | 1,068.8 |   |
| Deliveries (Bcf)                                                                                                                  |   |               |   |   |   |   |    |   |
| Sales                                                                                                                             |   |               |   |   |   |   |    |   |
| Residential                                                                                                                       |   |               | 96.1   |   |   |   | 90.7    |   |
| Commercial                                                                                                                        |   |               | 24.9   |   |   |   | 24.0    |   |
| Industrial                                                                                                                        |   |               | 3.3    |   |   |   | 3.0     |   |
|                                                                                                                              |   |               | 124.3  |   |   |   | 117.7   |   |
| Transportation                                                                                                                    |   |               |   |   |   |   |    |   |
| Residential                                                                                                                       |   |               | 11.2   |   |   |   | 11.2    |   |
| Commercial                                                                                                                        |   |               | 37.8   |   |   |   | 36.4    |   |
| Industrial                                                                                                                        |   |               | 31.0   |   |   |   | 29.8    |   |
|                                                                                                                              |   |               | 80.0   |   |   |   | 77.4    |   |
|                                                                                                                              |   |               | 204.3  |   |   |   | 195.1   |   |
| Customers at end of period (thousands)                                                                                            |   |               |   |   |   |   |    |   |
| Sales                                                                                                                             |   |               |   |   |   |   |    |   |
| Residential                                                                                                                       |   |               | 1,794  |   |   |   | 1,775   |   |
| Commercial                                                                                                                        |   |               | 135    |   |   |   | 132     |   |
| Industrial                                                                                                                        |   |               | 8      |   |   |   | 8       |   |
|                                                                                                                              |   |               | 1,937  |   |   |   | 1,915   |   |
| Transportation                                                                                                                    |   |               |   |   |   |   |    |   |
| Residential                                                                                                                       |   |               | 204    |   |   |   | 213     |   |
| Commercial                                                                                                                        |   |               | 47     |   |   |   | 49      |   |
| Industrial                                                                                                                        |   |               | 4      |   |   |   | 5       |   |
|                                                                                                                              |   |               | 255    |   |   |   | 267     |   |
|                                                                                                                              |   |               | 2,192  |   |   |   | 2,182   |   |
|                                                                                                                              |   |               |   |   |   |   |    |   |
| Other statistics                                                                                                                  |   |               |   |   |   |   |    |   |
| Degree days                                                                                                                       |   |               | 3,199  |   |   |   | 3,026   |   |
| Colder than normal (1)                                                                                                            |   |               | 10%    |   |   |   | 4%      |   |
| Average gas cost per Mcf sold                                                                                                     |   | $                  | 5.05   |   |   | $      | 6.57    |   |
|                                                                                                                              |   |               |   |   |   |   |    |   |
| (1) Normal weather for Nicor Gas' service territory, for purposes of this report, is considered to be 5,600 degree days per year. |   |

----

| Nicor Inc.                                              |   |               |   |   |   |   |   |   |
|---------------------------------------------------------|--------|--------------------|--------|--------|--------|--------|--------|--------|
| Shipping Statistics                                     |   |               |   |   |   |   |   |   |
|                                                    |   | Three months ended |   |
|                                                    |   | March 31           |   |
|                                                    |   |               | 2011   |   |   |   | 2010   |   |
|                                                    |   |               |   |   |   |   |   |   |
| Twenty-foot equivalent units (TEUs) shipped (thousands) |   |               | 38.4   |   |   |   | 42.5   |   |
|                                                    |   |               |   |   |   |   |   |   |
| Revenue per TEU                                         |   | $                  | 2,103  |   |   | $      | 1,963  |   |
|                                                    |   |               |   |   |   |   |   |   |
| At end of period                                        |   |               |   |   |   |   |   |   |
|                                                    |   |               |   |   |   |   |   |   |
|    Ports served                               |   |               | 25     |   |   |   | 25     |   |
|                                                    |   |               |   |   |   |   |   |   |
|    Vessels operated                           |   |               | 14     |   |   |   | 15     |   |