FOR
IMMEDIATE
RELEASE                                                                                                                            
FOR MORE INFORMATION


February
25,
2009                                                                                                           Contact:  Kary Brunner,
re: N-1007


630
388-2529


Media Contact:  Richard Caragol


630 388-2686





NICOR
ANNOUNCES 2008 PRELIMINARY EARNINGS AND 2009 ANNUAL OUTLOOK





Naperville,
IL – Nicor Inc. (NYSE: GAS) today reported twelve months ended December 31,
2008, preliminary net income, operating income and diluted earnings per common
share were $119.5 million, $185.0 million and $2.63,
respectively.  This compares to net income, operating income and
diluted earnings per common share for the same period in 2007 of $135.2 million,
$206.5 million and $2.99, respectively.





Results
for the twelve months ended December 31, 2007 were favorably impacted by a first
quarter reduction to the company’s previously established reserve for its
mercury inspection and repair program and mercury-related cost recoveries
aggregating approximately $8 million pretax ($.11 per share
after-tax).  Absent the impact of these items, the twelve-month
results for 2007 would have been approximately $2.88 per share.





Earnings
for the twelve months ended December 31, 2008, compared to 2007, reflect the
absence of the aforementioned mercury items.  Earnings for the
twelve-month period in 2008 reflect lower operating income in the company’s
gas distribution business, shipping business and other energy-related businesses
and lower corporate operating results.  Excluding the mercury-related
items, 2008 operating income in the company’s gas distribution business was
higher than 2007. The twelve-months-ended comparisons also reflect higher
income on equity investments in 2008, partially offset by higher interest
expense.





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2





“Given
the challenging economic environment, our businesses performed well,” said Russ
Strobel, Nicor’s Chairman, President and Chief Executive Officer.“While benefitting from
colder weather in 2008, our gas distribution business was, as we anticipated,
negatively impacted by increases in operating costs, including bad debt
expense.  Our shipping business delivered solid results, especially
after consideration of the impacts the economic slowdown and increased
competition had on volumes shipped.  Our other energy-related ventures
produced results that were near our expectations and we continue to be pleased
with the economics of those businesses.  Looking ahead, we expect
consolidated 2009 financial results to continue to be pressured by the current
economic environment and increased operating costs.  Cost increases
were a primary driver for our filing for rate relief in April 2008, and 2008
results and estimates for 2009 confirm the need for that
relief.  Obtaining appropriate rate relief at our gas distribution
business is critical to maintaining the strong financial condition of the
utility that has enabled us, for decades, to deliver low-cost
/ high value service to our customers.  Significantly, even with full
rate relief, Nicor Gas would continue to have the lowest distribution rates, by
far, among major Illinois gas utilities.”





For the
fourth quarter of 2008, preliminary net income, operating income and diluted
earnings per common share were $47.9 million, $71.9 million and $1.05,
respectively.  This compares to net income, operating income and
diluted earnings per common share for the fourth quarter in 2007 of $55.5
million, $77.2 million and $1.22, respectively.





Earnings
for the fourth quarter of 2008, compared to 2007, reflect lower operating income
in the company’s other energy-related businesses as well as lower corporate
operating results, partially offset by higher operating income in the company’s
gas distribution business and shipping business.





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Details
regarding twelve months ended December 31, 2008 and fourth quarter 2008
preliminary financial results compared to 2007 follow:





·
            Gas
      distribution operating income decreased $4.3 million for the twelve months
      ended December 31, 2008 compared to the prior-year period.  The
      twelve-month results reflected:


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


-
            Higher
      operating and maintenance costs ($24.8 million) due primarily to higher
      bad debt expense and higher payroll and benefit-related costs; partially
      offset by recoveries of previously incurred costs (relating to a recovery
      of costs associated with the prior year environmental investigation and
      legal cost recoveries from a counterparty with whom the company previously
      did business during the performance based-rate plan
      timeframe).


-
            Higher
      depreciation expense ($5.3 million) and lower gains on property sales
      ($1.2 million).


-
            Partially
      offsetting these negative factors was increased natural gas deliveries due
      to colder weather in 2008 (approximately $15 million) and the impact of
      customer interest (approximately $12
million).





·
            Gas
      distribution operating income increased $0.6 million for the fourth
      quarter of 2008 compared to the prior-year period.  The quarter
      reflected:


-
            Higher
      operating and maintenance costs ($13.8 million).  Factors
      contributing to the variance included higher bad debt expense and higher
      payroll and benefit-related costs.


-
            Higher
      depreciation expense ($1.2
million).


-
            Offsetting
      these negative factors was increased natural gas deliveries due to colder
      weather (approximately $8 million) and the impact of customer interest
      (approximately $4 million).





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·
            Shipping
      operating income decreased $6.1 million for the twelve months ended
      December 31, 2008 compared to the prior-year period due to higher
      operating costs partially offset by higher operating
      revenues.  Shipping operating income increased $1.7
      million for the fourth quarter compared to the prior-year
      period due to higher operating revenues, partially offset by higher
      operating costs.  Increased operating revenues for both periods,
      compared to 2007, were attributable to higher average rates (due primarily
      to surcharges for fuel); partially offset by lower volumes
      shipped.  Increased operating costs for the twelve months ended
      December 31, 2008 compared to the prior year period were primarily
      attributable to higher transportation-related costs, due in large part to
      increased fuel costs.  Increased operating costs for the fourth
      quarter, compared to the same period in 2007, were attributable to higher
      wages and benefits.





·
            Other
      energy ventures operating income decreased $8.7 million for the twelve
      months ended December 31, 2008 compared to the prior-year period due
      primarily to lower operating income in the company’s wholesale natural gas
      marketing business; partially offset by higher operating income in the
      company’s retail energy-related products and services
      businesses.  Other energy ventures operating income decreased
      $5.5 million for the fourth quarter 2008 compared to the prior-year period
      due to lower operating results in the company’s wholesale natural gas
      marketing business and retail energy-related products and services
      businesses.





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Lower
operating income for the full year and fourth quarter of 2008, compared to 2007,
in the company’s wholesale natural gas marketing business was due primarily to
unfavorable changes in valuations of derivative instruments used to hedge
purchases and sales of natural gas inventory and lower results from risk
management activities associated with hedging the product risks of the
utility-bill management contracts offered by the company’s retail energy-related
products and services businesses.  When compared to the prior periods,
the costing of physical sales activity was favorable for the twelve months ended
December 31, 2008, but was unfavorable for the fourth quarter of
2008.





The
company’s wholesale natural gas marketing business uses derivatives to mitigate
commodity price risk in order to substantially lock-in the profit margin that
will ultimately be realized.  A source of commodity price risk arises
as the wholesale natural gas marketing business purchases and holds natural
gas in storage to earn a profit margin from its ultimate
sale.  However, gas stored in inventory is required to be accounted
for at the lower of weighted-average cost or market, whereas the derivatives
used to reduce the risk associated with a change in the value of the inventory
are carried at fair value, with changes in fair value recorded in operating
results in the period of change.  In addition, the wholesale natural
gas marketing business also uses derivatives to mitigate the commodity price
risks of the utility-bill management products offered by the company’s
energy-related products and services businesses.  The gains and losses
associated with the utility-bill management products are recognized in the
months that the services are provided. However, the underlying derivatives used
to hedge the price exposure are carried at fair value. For those derivatives
that don’t meet the requirements for hedge accounting, the changes in fair value
are recorded in operating results in the period of change.  As a result,
earnings are subject to volatility as the fair value of derivatives
change.  The volatility resulting from this accounting can be significant
from period to period.





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Improved
operating results for the twelve months ended December 31, 2008, as compared to
2007, in the company’s retail energy-related products and services businesses
were due to lower operating costs, partially offset by lower operating
revenues.  Decreased operating costs were due primarily to lower
average costs associated with utility-bill management contracts, attributable
primarily to product mix.  Decreased operating revenues were due to
lower average revenue per utility-bill management contract, also attributable to
product mix.





Lower
fourth quarter 2008 operating results, as compared to 2007, in the company’s
retail energy-related products and services businesses were due to higher
operating costs partially offset by higher operating revenues.  Higher
operating costs were due to higher average costs associated with utility-bill
management contracts.  Higher operating revenues were attributable to
higher average revenue per utility-bill management contract.





·
            Corporate
      operating results decreased $2.4 million for the twelve months ended
      December 31, 2008 compared to the prior year period due to a $6.2 million
      pretax negative weather-related impact associated with certain of the
      company’s retail utility-bill management products, compared to a $0.1
      million pretax positive weather impact in the 2007 twelve-month period,
      partially offset by recoveries of previously incurred legal costs of $3.1
      million pretax recorded in the second quarter of
      2008.  Corporate operating results decreased $2.1 million in the
      fourth quarter of 2008 compared to the prior year period due primarily to
      a $2.5 million pretax negative weather-related impact 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.





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·
            The
      twelve months ended December 31, 2008 and fourth quarter 2008 financial
      results compared to the same periods in 2007 were negatively impacted by
      higher interest expense.  The full year 2008 results, compared
      to 2007, also reflect higher pretax net equity investment
      income.  Higher interest expense in 2008, compared to 2007, was
      due to the absence of a $9.6 million pretax benefit of a settlement with
      the Internal Revenue Service, recognized in the fourth quarter of 2007,
      related to the timing of certain deductions taken as part of a change in
      accounting method on the company’s 2002 tax return.  Excluding
      the impact of this item, interest expense decreased $7.4 million and $2.7
      million for the twelve months ended December 31, 2008 and fourth quarter
      2008, respectively, compared to the prior-year periods due to lower
      average borrowing rates, partially offset by higher average borrowing
      levels.





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8





Rate Case
Proceedings


On April
29, 2008, the company’s gas distribution business, Nicor Gas, filed with the
Illinois Commerce Commission (ICC) for an overall increase in
rates.  The company’s filing, as updated, requests a revenue increase
of $140.4 million for a rate of return on rate base of 9.27 %, which reflects an
11.15% cost of common equity.  The requested rate increase is needed
to recover higher operating costs and increased capital
investments.





In a
press release on February 10, 2009, the Company announced that the
Administrative Law Judges (ALJs) of the ICC issued a proposed order recommending
an increase in base revenues of approximately $68.8 million and a return on rate
base of 7.57 %, which reflects a 10.17 % cost of common
equity.  Additionally, the proposed order recommends the approval of
two new rate adjustment mechanisms:  a volume balancing rider that
would adjust rates to recover fixed costs and an energy efficiency rider that
would fund energy efficiency programs.  The proposed order is a
recommendation by the ALJs.  Nicor Gas and other parties to the
proceeding will have the opportunity to file written briefs to identify points
where they agree or disagree with the proposed order.  After
considering these briefs, the ALJs may modify the proposed order prior to
submitting their recommendation to the ICC commissioners.  The ICC
commissioners will then make the final decision on Nicor Gas’ rate increase
request and that decision may differ from the ALJs’
recommendation.  That final decision is expected to be issued no later
than March 25, 2009.  Rates would be effective
prospectively.





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9




2009 Earnings
Outlook


The level
of earnings for 2009 is dependent significantly on the gas distribution
business’ pending rate case.  As noted above, new rates would become
effective prospectively after the final order.  Based on the rate
relief proposed in the aforementioned ALJs’ order of $68.8 million, the company
estimates 2009 diluted earnings per common share will be in the range of $2.45
to $2.65.  Rate relief awarded by the ICC may differ substantially
from the ALJs’ order.  Consistent with prior guidance, the annual
outlook excludes, among other things, any future impacts associated with the
ICC’s Performance-Based Rate plan/Purchased Gas Adjustment review, other
contingencies, or changes in tax law.  The company also indicated that
its estimate does not reflect the additional variability in earnings due to fair
value accounting adjustments in its businesses and other impacts that could
occur because of future volatility in the natural gas markets. While these items
could materially affect 2009 earnings, they are not currently estimable. The
company's 2009 estimate assumes normal weather for remainder of the
year.





The
company’s annual earnings outlook for 2009, noted above, compared to 2008
reflects lower expected results in the company’s gas distribution and shipping
businesses and higher results in its other energy-related
businesses.




The
company will provide updates to its annual earnings outlook only as part of its
quarterly and annual earnings’ releases.




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10





Conference
Call


As
previously announced, the company will hold a conference call to discuss its
twelve-months-ended and fourth quarter 2008 financial results, and 2009
outlook.  The conference call will be this morning, Wednesday,
February 25, 2009 at 8:30 a.m. central, 9:30 a.m. eastern time.  To
hear the conference call live, please log on to Nicor’s corporate web site at
www.nicor.com,
choose “Investor” and then select the webcast icon on the “Overview”
page.  A replay of the call will be available until 10:30 a.m. central
time, Thursday, March 12, 2009.  To access the recording, call (888)
286-8010, or (617) 801-6888 for callers outside the United States, and enter
reservation number 96029676.  The call will also be archived on
Nicor’s corporate website for 90 days.





Nicor
Inc. (NYSE: GAS) is a holding company and is a member of the Standard &
Poor’s 500 Index.  Its primary business is Nicor Gas, one of the
nation’s largest natural gas distribution companies.  Nicor owns
Tropical Shipping, a containerized shipping business serving the Caribbean
region and the Bahamas.  In addition, the company 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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11





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 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; accidents, leaks,
equipment failures, service interruptions, environmental pollution, and other
operating risks; 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
customers, transporters, 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.









Nicor
      Inc.PRELIMINARY CONSOLIDATED STATEMENTS OF
      OPERATIONSUnaudited
      (millions, except per share data)Three
      months ended
                                        
                                        
                                        Twelve
      months endedDecember
      31
                                        
                                        
                                        December
      312008
                                        
                                        
                                        2007
                                        
                                        
                                        2008
                                        
                                        
                                        2007Operating
      revenuesGas
      distribution
                                        
                                        $
                                        876.5
                                        
                                        
                                        $
                                        748.8
                                        
                                        
                                        $
                                        3,206.9
                                        
                                        
                                        $
                                        2,627.5Shipping
                                        
                                        
                                        116.4
                                        
                                        
                                        
                                        110.3
                                        
                                        
                                        
                                        425.2
                                        
                                        
                                        
                                        403.9Other
      energy ventures
                                        
                                        
                                        72.5
                                        
                                        
                                        
                                        85.5
                                        
                                        
                                        
                                        230.3
                                        
                                        
                                        
                                        244.5Corporate
      and eliminations
                                        
                                        
                                        (24.6
                                        )
                                        
                                        
                                        (25.1
                                        )
                                        
                                        
                                        (85.8
                                        )
                                        
                                        
                                        (99.6
                                        )Total
      operating revenues
                                        
                                        
                                        1,040.8
                                        
                                        
                                        
                                        919.5
                                        
                                        
                                        
                                        3,776.6
                                        
                                        
                                        
                                        3,176.3Operating
      expensesGas
      distributionCost
      of gas
                                        
                                        
                                        664.9
                                        
                                        
                                        
                                        558.1
                                        
                                        
                                        
                                        2,427.8
                                        
                                        
                                        
                                        1,906.5Operating
      and maintenance
                                        
                                        
                                        82.1
                                        
                                        
                                        
                                        68.3
                                        
                                        
                                        
                                        294.6
                                        
                                        
                                        
                                        269.8Depreciation
                                        
                                        
                                        42.4
                                        
                                        
                                        
                                        41.2
                                        
                                        
                                        
                                        170.9
                                        
                                        
                                        
                                        165.6Taxes,
      other than income taxes
                                        
                                        
                                        46.1
                                        
                                        
                                        
                                        40.8
                                        
                                        
                                        
                                        189.4
                                        
                                        
                                        
                                        166.9Mercury-related
      costs (recoveries), net
                                        
                                        
                                        .6
                                        
                                        
                                        
                                        -
                                        
                                        
                                        
                                        .6
                                        
                                        
                                        
                                        (8.0
                                        )Property
      sale gains
                                        
                                        
                                        (.6
                                        )
                                        
                                        
                                        -
                                        
                                        
                                        
                                        (.8
                                        )
                                        
                                        
                                        (2.0
                                        )Shipping
                                        
                                        
                                        96.2
                                        
                                        
                                        
                                        91.8
                                        
                                        
                                        
                                        385.9
                                        
                                        
                                        
                                        358.5Other
      energy ventures
                                        
                                        
                                        59.8
                                        
                                        
                                        
                                        67.3
                                        
                                        
                                        
                                        205.0
                                        
                                        
                                        
                                        210.5Other
      corporate expenses and eliminations
                                        
                                        
                                        (22.6
                                        )
                                        
                                        
                                        (25.2
                                        )
                                        
                                        
                                        (81.8
                                        )
                                        
                                        
                                        (98.0
                                        )Total
      operating expenses
                                        
                                        
                                        968.9
                                        
                                        
                                        
                                        842.3
                                        
                                        
                                        
                                        3,591.6
                                        
                                        
                                        
                                        2,969.8Operating
      income (1)
                                        
                                        
                                        71.9
                                        
                                        
                                        
                                        77.2
                                        
                                        
                                        
                                        185.0
                                        
                                        
                                        
                                        206.5Interest
      expense, net of amounts capitalized
                                        
                                        
                                        10.5
                                        
                                        
                                        
                                        3.6
                                        
                                        
                                        
                                        40.1
                                        
                                        
                                        
                                        37.9Equity
      investment income, net
                                        
                                        
                                        2.2
                                        
                                        
                                        
                                        1.9
                                        
                                        
                                        
                                        9.4
                                        
                                        
                                        
                                        6.3Interest
      income
                                        
                                        
                                        1.9
                                        
                                        
                                        
                                        1.7
                                        
                                        
                                        
                                        8.8
                                        
                                        
                                        
                                        8.8Other
      income, net
                                        
                                        
                                        .6
                                        
                                        
                                        
                                        .4
                                        
                                        
                                        
                                        .7
                                        
                                        
                                        
                                        .6Income
      before income taxes
                                        
                                        
                                        66.1
                                        
                                        
                                        
                                        77.6
                                        
                                        
                                        
                                        163.8
                                        
                                        
                                        
                                        184.3Income
      tax expense, net of benefits
                                        
                                        
                                        18.2
                                        
                                        
                                        
                                        22.1
                                        
                                        
                                        
                                        44.3
                                        
                                        
                                        
                                        49.1Net
      income
                                        
                                        $
                                        47.9
                                        
                                        
                                        $
                                        55.5
                                        
                                        
                                        $
                                        119.5
                                        
                                        
                                        $
                                        135.2Average
      shares of common stock outstandingBasic
                                        
                                        
                                        45.3
                                        
                                        
                                        
                                        45.2
                                        
                                        
                                        
                                        45.3
                                        
                                        
                                        
                                        45.2Diluted
                                        
                                        
                                        45.4
                                        
                                        
                                        
                                        45.3
                                        
                                        
                                        
                                        45.4
                                        
                                        
                                        
                                        45.3Earnings
      per average share of common stockBasic
                                        
                                        $
                                        1.06
                                        
                                        
                                        $
                                        1.23
                                        
                                        
                                        $
                                        2.64
                                        
                                        
                                        $
                                        2.99Diluted
                                        
                                        
                                        1.05
                                        
                                        
                                        
                                        1.22
                                        
                                        
                                        
                                        2.63
                                        
                                        
                                        
                                        2.99(1)  Operating
      income (loss) by business segmentGas
      distribution
                                        
                                        $
                                        41.0
                                        
                                        
                                        $
                                        40.4
                                        
                                        
                                        $
                                        124.4
                                        
                                        
                                        $
                                        128.7Shipping
                                        
                                        
                                        20.2
                                        
                                        
                                        
                                        18.5
                                        
                                        
                                        
                                        39.3
                                        
                                        
                                        
                                        45.4Other
      energy ventures
                                        
                                        
                                        12.7
                                        
                                        
                                        
                                        18.2
                                        
                                        
                                        
                                        25.3
                                        
                                        
                                        
                                        34.0Corporate
      and eliminations
                                        
                                        
                                        (2.0
                                        )
                                        
                                        
                                        .1
                                        
                                        
                                        
                                        (4.0
                                        )
                                        
                                        
                                        (1.6
                                        )$
                                        71.9
                                        
                                        
                                        $
                                        77.2
                                        
                                        
                                        $
                                        185.0
                                        
                                        
                                        $
                                        206.5





Nicor
      Inc.Gas
      Distribution StatisticsThree
      months ended
                                          
                                          
                                          Twelve
      months endedDecember
      31
                                          
                                          
                                          December
      312008
                                          
                                          
                                          2007
                                          
                                          
                                          2008
                                          
                                          
                                          2007Operating revenues(millions)SalesResidential
                                          
                                          $
                                          603.8
                                          
                                          
                                          $
                                          523.8
                                          
                                          
                                          $
                                          2,176.2
                                          
                                          
                                          $
                                          1,791.4Commercial
                                          
                                          
                                          149.3
                                          
                                          
                                          
                                          120.7
                                          
                                          
                                          
                                          551.4
                                          
                                          
                                          
                                          426.2Industrial
                                          
                                          
                                          16.0
                                          
                                          
                                          
                                          12.8
                                          
                                          
                                          
                                          61.9
                                          
                                          
                                          
                                          47.6769.1
                                          
                                          
                                          
                                          657.3
                                          
                                          
                                          
                                          2,789.5
                                          
                                          
                                          
                                          2,265.2TransportationResidential
                                          
                                          
                                          12.4
                                          
                                          
                                          
                                          9.7
                                          
                                          
                                          
                                          40.9
                                          
                                          
                                          
                                          31.1Commercial
                                          
                                          
                                          27.3
                                          
                                          
                                          
                                          23.0
                                          
                                          
                                          
                                          82.2
                                          
                                          
                                          
                                          76.7Industrial
                                          
                                          
                                          9.6
                                          
                                          
                                          
                                          9.0
                                          
                                          
                                          
                                          38.3
                                          
                                          
                                          
                                          37.5Other
                                          
                                          
                                          1.7
                                          
                                          
                                          
                                          .6
                                          
                                          
                                          
                                          25.7
                                          
                                          
                                          
                                          10.651.0
                                          
                                          
                                          
                                          42.3
                                          
                                          
                                          
                                          187.1
                                          
                                          
                                          
                                          155.9Other
      revenuesRevenue
      taxes
                                          
                                          
                                          42.4
                                          
                                          
                                          
                                          35.6
                                          
                                          
                                          
                                          174.0
                                          
                                          
                                          
                                          149.6Environmental
      cost recovery
                                          
                                          
                                          2.9
                                          
                                          
                                          
                                          2.9
                                          
                                          
                                          
                                          9.7
                                          
                                          
                                          
                                          10.9Chicago
      Hub
                                          
                                          
                                          2.8
                                          
                                          
                                          
                                          5.9
                                          
                                          
                                          
                                          11.3
                                          
                                          
                                          
                                          19.0Other
                                          
                                          
                                          8.3
                                          
                                          
                                          
                                          4.8
                                          
                                          
                                          
                                          35.3
                                          
                                          
                                          
                                          26.956.4
                                          
                                          
                                          
                                          49.2
                                          
                                          
                                          
                                          230.3
                                          
                                          
                                          
                                          206.4$
                                          876.5
                                          
                                          
                                          $
                                          748.8
                                          
                                          
                                          $
                                          3,206.9
                                          
                                          
                                          $
                                          2,627.5Deliveries(Bcf)SalesResidential
                                          
                                          
                                          71.8
                                          
                                          
                                          
                                          64.6
                                          
                                          
                                          
                                          214.4
                                          
                                          
                                          
                                          201.8Commercial
                                          
                                          
                                          17.5
                                          
                                          
                                          
                                          14.8
                                          
                                          
                                          
                                          54.7
                                          
                                          
                                          
                                          48.7Industrial
                                          
                                          
                                          1.9
                                          
                                          
                                          
                                          1.6
                                          
                                          
                                          
                                          6.4
                                          
                                          
                                          
                                          5.791.2
                                          
                                          
                                          
                                          81.0
                                          
                                          
                                          
                                          275.5
                                          
                                          
                                          
                                          256.2TransportationResidential
                                          
                                          
                                          9.3
                                          
                                          
                                          
                                          6.8
                                          
                                          
                                          
                                          25.6
                                          
                                          
                                          
                                          19.7Commercial
                                          
                                          
                                          31.4
                                          
                                          
                                          
                                          26.9
                                          
                                          
                                          
                                          93.1
                                          
                                          
                                          
                                          84.6Industrial
                                          
                                          
                                          27.2
                                          
                                          
                                          
                                          27.8
                                          
                                          
                                          
                                          103.9
                                          
                                          
                                          
                                          107.867.9
                                          
                                          
                                          
                                          61.5
                                          
                                          
                                          
                                          222.6
                                          
                                          
                                          
                                          212.1159.1
                                          
                                          
                                          
                                          142.5
                                          
                                          
                                          
                                          498.1
                                          
                                          
                                          
                                          468.3Customers at end of period(thousands)SalesResidential
                                          
                                          
                                          1,760
                                          
                                          
                                          
                                          1,789Commercial
                                          
                                          
                                          130
                                          
                                          
                                          
                                          128Industrial
                                          
                                          
                                          8
                                          
                                          
                                          
                                          71,898
                                          
                                          
                                          
                                          1,924TransportationResidential
                                          
                                          
                                          222
                                          
                                          
                                          
                                          191Commercial
                                          
                                          
                                          53
                                          
                                          
                                          
                                          54Industrial
                                          
                                          
                                          5
                                          
                                          
                                          
                                          5280
                                          
                                          
                                          
                                          2502,178
                                          
                                          
                                          
                                          2,174Other
      statisticsDegree
      days
                                          
                                          
                                          2,349
                                          
                                          
                                          
                                          2,057
                                          
                                          
                                          
                                          6,348
                                          
                                          
                                          
                                          5,756Colder
      (warmer) than normal (1)
                                          
                                          
                                          13%
                                          
                                          
                                          
                                          (1%
                                          )
                                          
                                          
                                          9%
                                          
                                          
                                          
                                          (1%
                                          )Average
      gas cost per Mcf sold
                                          
                                          $
                                          7.24
                                          
                                          
                                          $
                                          6.83
                                          
                                          
                                          $
                                          8.76
                                          
                                          
                                          $
                                          7.36(1)
      Normal weather for Nicor Gas' service territory, for purposes of this
      report, is considered to be 5,830 degree
      days per year.





Nicor
      Inc.Shipping
      StatisticsThree
      months ended
                  
                  
                  Twelve
      months endedDecember
      31
                  
                  
                  December
      312008
                  
                  
                  2007
                  
                  
                  2008
                  
                  
                  2007Twenty-foot
      equivalent units (TEUs) shipped (thousands)
                  
                  
                  50.8
                  
                  
                  
                  54.4
                  
                  
                  
                  197.1
                  
                  
                  
                  206.6Revenue
      per TEU
                  
                  $
                  2,291
                  
                  
                  $
                  2,027
                  
                  
                  $
                  2,158
                  
                  
                  $
                  1,955At
      end of periodPorts
      served
                  
                  
                  25
                  
                  
                  
                  26Vessels
      operated
                  
                  
                  17
                  
                  
                  
                  19