For Release: 07/16/2008

Erickson to Retire from Michigan Gas Utilities, Cloninger to Assume Dual Role

Monroe, MI – Gary Erickson, president of Michigan Gas Utilities, a regulated natural gas distribution subsidiary of Integrys Energy Group (NYSE: TEG), today announced plans to retire at the end of this year, capping a 40-year career of leadership within the utility industry.

"Gary's leadership at Michigan Gas Utilities has made that acquisition from Aquila go more smoothly than I could have imagined," said Larry T. Borgard, president and chief operating officer of the Integrys Gas Group, which oversees natural gas operations within Integrys Energy Group. "As he did at Upper Peninsula Power Company before moving to MGU in 2006, Gary has created very productive relationships with employees, community leaders, elected officials and commissioners. He will be missed."

Erickson said it was a good time for him to formalize his retirement plans.

"I told my staff earlier this year that I would probably retire before the end of 2008," said Erickson. "This just formalizes those plans. It also gives us time to introduce the new president to the employees and to other key people and groups in Michigan who are important to MGU's continued success."

Chuck Cloninger, 49, president of Minnesota Energy Resources, another Integrys Energy Group subsidiary, will also assume the role of president of Michigan Gas Utilities. He will spend time at both companies as necessary.

To help Cloninger manage his span of control and to provide on-site company leadership, two long-time employees will expand their leadership roles at the Michigan and Minnesota utilities:

"I have great confidence in this new leadership team," Borgard told employees. "Gary Erickson and Chuck Cloninger have been strong leaders at MGU and Minnesota Energy Resources since those companies came into the system in 2006. Over the past few years, Dave Kult and Chuck Hauska have been excellent supports for Gary and Chuck. I know they will continue to be so in their new roles."

Erickson was named president and COO of MGU in October 2005. Prior to this appointment, he served as president of Upper Peninsula Power Company (UPPCO), a position he had held since 2004.

Prior to joining MGU, Erickson served in both the electric and natural gas distribution business. He held a number of positions during his career, including: line electrician, quality assurance coordinator, electrical line supervisor, gas and electric supervisor, site leader and customer service manager.

Cloninger, a registered Professional Engineer, comes to his new role while serving as president of Minnesota Energy Resources, also a regulated natural gas subsidiary of Integrys Energy Group, since October 2005. Cloninger began his career with Wisconsin Public Service Corporation in 1981 as an Associate Engineer in Green Bay. He advanced through a number of leadership positions at Wisconsin Public Service, including division engineer, Western Region manager; and assistant vice president - Operations and Engineering.

Erickson, Cloninger, Hauska and Kult will spend the next several months transitioning to their new roles.

More information about Michigan Gas Utilities, Minnesota Energy Resources and Integrys Energy Group, Inc., is available online at www.integrysgroup.com.

About Michigan Gas Utilities

Michigan Gas Utilities Corporation is a subsidiary of Integrys Energy Group. MGUC is a natural gas utility, headquartered in Monroe, MI, serving approximately 165,000 customers in lower Michigan.

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