COLUMBUS, Ohio, Aug. 9, 2004 - American Electric Power (NYSE: AEP) today announced that it has signed a definitive agreement to sell Jefferson Island Storage and Hub LLC for $94.3 million to AGL Resources Inc.

The sales agreement is part of AEP´s plan to divest assets that don´t fit the company´s long-term strategy, which focuses on core domestic utility operations. Proceeds from the sale will be used to reduce debt and strengthen the balance sheet.

The transaction, which is contingent on Hart-Scott-Rodino antitrust review and other customary closing conditions, is expected to close by Sept. 30. The divestiture will not result in any significant impact to earnings for AEP.

Jefferson Island Storage and Hub consists of two salt dome gas storage caverns in southern Louisiana, with approximately 9.66 million MMBtu of storage capacity, and two 16-inch header pipelines with eight high deliverability interconnections.

AEP acquired the Jefferson Island Storage and Hub assets as part of the purchase of LIG Pipeline Co. and its subsidiaries in 1998 from Equitable Resources for $320 million. The company has recorded impairments to the combined assets (LIG and Jefferson Island), which reduced the value of the combined assets on AEP’s books to approximately $170 million as of Dec. 31, 2003. AEP completed the sale of LIG Pipeline Co. and its subsidiaries, excluding Jefferson Island, on April 1 to a subsidiary of Crosstex Energy, L.P. for $76.2 million.

AEP classified the combined LIG assets as a discontinued operation held for sale during the fourth quarter of 2003.

"This agreement puts us near completion of the process to shed non-core assets so our operational focus - and the focus of our investors - can be on the performance of our strong domestic utilities," said Michael G. Morris, AEP´s chairman, president and chief executive officer.

American Electric Power owns more than 36,000 megawatts of generating capacity in the United States and is the nation´s largest electricity generator. AEP is also one of the largest electric utilities in the United States, with more than 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.

This report made by AEP and certain of its subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its registrant subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: electric load and customer growth; weather conditions; available sources and costs of fuels; availability of generating capacity and the performance of AEP’s generating plants; the ability to recover regulatory assets and stranded costs in connection with deregulation; new legislation and government regulation including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon and other substances; resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery for environmental compliance); oversight and/or investigation of the energy sector or its participants; resolution of litigation (including pending Clean Air Act enforcement actions and disputes arising from the bankruptcy of Enron Corp.); AEP´s ability to reduce its operation and maintenance costs; the success of disposing of investments that no longer match AEP´s business model; AEP´s ability to sell assets at acceptable prices and on other acceptable terms; international and country-specific developments affecting foreign investments including the disposition of any foreign investments; the economic climate and growth in AEP´s service territory and changes in market demand and demographic patterns; inflationary trends; AEP´s ability to develop and execute a strategy based on a view regarding prices of electricity, natural gas, and other energy-related commodities; changes in the creditworthiness and number of participants in the energy trading market; changes in the financial markets, particularly those affecting the availability of capital and AEP´s ability to refinance existing debt at attractive rates; actions of rating agencies, including changes in the ratings of debt and preferred stock; volatility and changes in markets for electricity, natural gas, and other energy-related commodities; changes in utility regulation, including the establishment of a regional transmission structure; accounting pronouncements periodically issued by accounting standard-setting bodies; the performance of AEP´s pension plan; prices for power that AEP generates and sells at wholesale; changes in technology and other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.