MERRILLVILLE, Ind., Nov. 22, 2011 /PRNewswire/ — NiSource Inc. (NYSE: NI) announced today that, pursuant to the previously announced cash tender offers of its finance subsidiary, NiSource Finance Corp., approximately $125 million aggregate principal amount of its outstanding 10.75% Notes due 2016 (“2016 Notes”) and approximately $228 million aggregate principal amount of its outstanding 6.15% Notes due 2013 (“2013 Notes”) were validly tendered and not validly withdrawn before 5:00 p.m., New York City time, today (the “Early Participation Date”), according to information provided by Global Bondholder Services Corporation, the depositary for the tender offers.

NiSource Finance has extended the deadline by which holders who tender their 2016 Notes and 2013 Notes will be eligible to receive the early tender payment until 11:59 p.m., New York City time, on December 12, 2011 (the “Expiration Date”), unless further extended by NiSource Finance. However, withdrawal rights for 2016 Notes and 2013 Notes tendered in the tender offers have not been extended and therefore expired at 5:00 p.m., New York City time, on November 22, 2011. Tenders submitted after that time are irrevocable except in the limited circumstances where additional withdrawal rights are required by law. The tender offers are made pursuant to an Offer to Purchase, dated November 14, 2011 and related Letter of Transmittal dated November 14, 2011, which set forth a comprehensive description of the terms of the offers.

The total consideration to be received for each $1,000 principal amount of Notes validly tendered and not withdrawn in the tender offers before the Expiration Date and accepted for purchase will be determined in the manner described in the Offer to Purchase by reference to the fixed spread over the yield to maturity of the applicable U.S. Treasury Security specified for the particular series of Notes on the cover page of the Offer to Purchase. The purchase price for each series of Notes will be determined based on certain quotes for the reference Treasury Securities available at 10:00 a.m., New York City time, on November 23, 2011. The purchase price for each series of Notes will include an early tender payment of $30 per $1,000 principal amount and accrued and unpaid interest up to, but not including, the applicable settlement date. NiSource Finance may elect an early settlement option, which is described in the Offer to Purchase, with respect to the 2016 Notes.

The tender offers are scheduled to expire at 11:59 p.m., New York City time, on the Expiration Date, unless extended or earlier terminated. NiSource Finance will accept for purchase all validly tendered 2016 Notes that are not validly withdrawn. NiSource Finance will accept for purchase, on a pro rata basis, 2013 Notes in an amount equal to the difference between $250 million and the principal amount of 2016 Notes validly tendered and accepted for purchase. The tender offers are subject to the satisfaction or waiver of certain conditions set forth in the Offer to Purchase, including a financing condition which is expected to be satisfied upon the closing of NiSource Finance’s sale of $500 million aggregate principal amount of two series of its long-term debt securities, which is scheduled for November 23, 2011.

Questions regarding the tender offer may be directed to the Dealer Manager, Citigroup Global Markets Inc. at (212) 723-6106 (collect) or (800) 558-3745 (toll-free). Requests for documents may be directed to Global Bondholder Services Corporation, the information agent and depositary for the tender offer, at (212) 430-3774 (for banks and brokers) or (866) 952-2200 (toll-free).

This news release is for informational purposes only and does not constitute an offer to purchase or a solicitation of an offer to sell with respect to the 2016 Notes or the 2013 Notes, nor is this news release an offer to sell, a solicitation to buy or an offer to purchase or sell any securities. The tender offer is being made only pursuant to the Offer to Purchase and only in such jurisdictions as is permitted under applicable law.

About NiSource

NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.7 million customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Together, NiSource’s gas transmission and storage companies operate a 15,000-mile network of natural gas pipelines, 37 storage fields and serve some of the nation’s largest and fastest-growing energy markets in the Northeast, Midwest and Mid-Atlantic regions. Information about NiSource and its subsidiaries is available via the Internet at www.nisource.com. NI-F

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements include statements regarding the intent, belief or current expectations of NiSource and its management. Although NiSource believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Readers are cautioned that the forward-looking statements in this news release are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those indicated by such forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, the following: weather; fluctuations in supply and demand for energy commodities; growth opportunities for NiSource’s businesses; increased competition in deregulated energy markets; the success of regulatory and commercial initiatives; dealings with third parties over whom NiSource has no control; actual operating experience of NiSource’s assets; the regulatory process; regulatory and legislative changes; the impact of potential new environmental laws or regulations; the results of material litigation; changes in pension funding requirements; changes in general economic, capital and commodity market conditions; and counter-party credit risk, and the matters set forth in the “Risk Factors” section in NiSource’s 2010 Form 10-K and 2011 Forms 10-Q, many of which risks are beyond the control of NiSource. NiSource expressly disclaims a duty to update any of the forward-looking statements contained in this release.

SOURCE NiSource Inc.