Inergy Announces Successful MARC I Hub Line Open Season

Inergy, L.P. (NASDAQ:NRGY) announced today that it’s wholly owned subsidiary, Inergy Midstream, LLC ("Inergy”), has received indications of interest exceeding 200% of the desired capacity to construct the previously announced 43 mile Marc I Hub Line, a 24” bi-directional gas pipeline extending between Inergy’s Stagecoach South Lateral pipeline interconnect at Tennessee Gas Pipeline Company’s ("TGP”) 300 Line and Transcontinental Gas Pipeline Corporation’s ("Transco”) Leidy Line both located in Bradford County, PA. "The response to our proposed Marc I pipeline development was outstanding. Not only did we receive expected volume interest from local distribution companies seeking to enhance their supply portfolio and increase reliability, but we also confirmed strong interest from local producers with development rights in the high profile Marcellus shale that exists the length of the pipeline,” said John Sherman, President and CEO of Inergy. "We continue to see an attractive opportunity to create an integrated Northeast gas infrastructure hub utilizing our existing 40 miles of pipeline and nearly 40 Bcf of gas storage capacity that with the construction of the 43 mile Marc I Hub Line, is strategically connected to Transco, TGP, and the Millennium pipelines.” Inergy is finalizing design and route selection and continues to have discussions with additional interested shippers. Inergy expects to enter into binding precedent agreements in the near future as well as make all the required regulatory applications and filings. About Inergy Midstream, LLC Inergy Midstream is a wholly-owned subsidiary of Inergy, L.P. and is headquartered in Kansas City, Missouri. The Company owns and operates Central New York Oil And Gas Company, LLC’s Stagecoach natural gas storage facility with 26.35 Bcf of working gas capacity; the Bath LPG Storage facility, a 1.5 million barrel underground salt cavern liquid petroleum gas storage facility; and Arlington Storage Company which includes Thomas Corners, a planned 7 Bcf natural gas storage facility currently being developed and a controlling interest in Steuben Gas Storage Company, a 6.2 Bcf natural gas storage facility. About Inergy, L.P. and Inergy Holdings, L.P. Inergy, L.P. is among the fastest growing master limited partnerships in the country. The company’s operations include the retail marketing, sale, and distribution of propane to residential, commercial, industrial, and agricultural customers. Today, Inergy serves approximately 700,000 retail customers from over 300 customer service centers throughout the eastern half of the United States. The Company also operates a natural gas storage business; a natural gas liquids storage, terminaling, and fractionation business; and a propane supply logistics, transportation, and wholesale marketing business that serves independent dealers and multi-state marketers in the United States and Canada. This news release contains forward-looking statements, which are statements that are not historical in nature such as the expectation that Marc I Hub Line project will add additional transportation capacity in the northeast, the proposed hub line will interconnect with Tennessee Gas Pipeline and Transcontinental Gas Pipeline Corporation’s (Transco) Leidy Line, and that Inergy will be able to enter into binding precedent agreements with counterparties. Forward-looking statements are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or any underlying assumption proves incorrect, actual results may vary materially from those anticipated, estimated, or projected. Among the key factors that could cause actual results to differ materially from those referred to in the forward-looking statements are: weather conditions that vary significantly from historically normal conditions; the demand for high deliverability natural gas storage capacity in the Northeast; the general level of petroleum product demand and the availability of natural gas and the price of natural gas to the consumer compared to the price of alternative and competing fuels; our ability to successfully implement our business plan for the Steuben County, New York, facilities; our ability to generate available cash for distribution to unitholders; the outcome of rate decisions levied by the Federal Energy Regulatory Commission; and the costs and effects of legal, regulatory, and administrative proceedings against us or which may be brought against us. These and other risks and assumptions are described in Inergy’s annual report on Form 10-K and other reports that are available from the United States Securities and Exchange Commission. Corporate news, unit prices, and additional information about Inergy, including reports from the United States Securities and Exchange Commission, are available on the Company’s Web site, www.InergyPropane.com. For more information, contact Mike Campbell in Inergy’s Investor Relations Department at 816-842-8181 or via e-mail at investorrelations@inergyservices.com.