PGL Peoples Energy Corp

The Board of Directors of Peoples Energy (NYSE:PGL) today declared a regular quarterly dividend of 54 1/2 cents per share. The dividend is payable on July 15 to shareholders of record at the close of business on June 22. Beginning with the April 2005 payment, the Company raised its quarterly dividend to the current annualized level of $2.18 per share - the 10th year in a row that the dividend has been increased. Peoples Energy, a member of the S&P 500, is a diversified energy company comprised of five primary business segments: Gas Distribution, Oil and Gas Production, Midstream Services, Retail Energy Services, and Power Generation. The Gas Distribution business serves about 1 million retail customers in Chicago and northeastern Illinois. Visit the Peoples Energy web site at www.PeoplesEnergy.com.