Peoples Energy Board of Directors Selects Russell Reynolds to Assist in CEO Search; Lays out Deliberate Process and Timeframe for CEO Selection

James Boris, lead director, said that the executive search firmwill assist the board in identifying and screening candidates inaccordance with carefully selected criteria. The board has alreadystated that the confidential search will consider both internal andexternal candidates.

"Since Tom Patrick announced his retirement plans, the board hasworked carefully and deliberately to define the requirements of theCEO position going forward," Boris said. "We believe Russell Reynoldswill work well with us in identifying candidates that meet thoserequirements."

Boris indicated that the selection process would extend severalmonths. "We intend to take all the time that is needed to identifycandidates who meet the company's strategic requirements," Boris said."In the meantime, Peoples and its 2,300 employees will continue tofocus on serving the energy needs of our customers."

Peoples Energy, a member of the S&P 500, is a diversified energycompany comprised of three primary business segments: GasDistribution, Oil and Gas Production and Energy Marketing. The GasDistribution business serves about one million retail customers inChicago and northeastern Illinois. Visit the Peoples Energy web siteat PeoplesEnergy.com.

Russell Reynolds Associates is one of the world's pre-eminentexecutive recruiting and assessment firms. Through a global network of33 wholly owned offices, the firm's more than 275 professionalsconduct senior executive search and assessment assignments in a rangeof industries for public and private organizations of all sizes. Thefirm's Web site is www.russellreynolds.com.