MERRILLVILLE, Ind., Oct. 3, 2003 — NiSource Inc. announced that it completed the sale of its telecommunications subsidiary, Columbia Transmission Communications Corporation (Transcom), to NEON Communications, Inc., a provider of advanced optical network services in the U.S. Northeast and Mid-Atlantic regions.
On July 3, 2003, NiSource’s subsidiary, Columbia Energy Group, executed an agreement to sell 100 percent of the outstanding capital stock of Transcom to NEON, and during the second quarter of 2003, NiSource recognized an after-tax loss of $2.5 million related to the then pending sale.
Since the fourth quarter of 2002, NiSource has reported the results of operations related to Transcom as discontinued operations on its consolidated income statements and Transcom’s assets and liabilities have been separately aggregated and reflected as assets and liabilities of discontinued operations on NiSource’s consolidated balance sheets. All prior periods have been restated to reflect Transcom as discontinued operations.
“Virtually all of NiSource’s operating income is derived from our core, regulated assets,” said Gary L. Neale, NiSource chairman, president and chief executive officer. “Moving forward, our strategy is to focus on optimizing the potential of our utility and pipeline assets to deliver long-term value to our shareholders.”
NiSource acquired Transcom as a result of its acquisition of Columbia Energy Group in 2000. Transcom owns and operates a dark fiber optic system, along a diverse route between New York City and Washington, D.C.
NiSource Inc. is a Fortune 500 holding company with headquarters in Merrillville, Ind., whose core operating companies engage in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to more than 3.7 million customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Information about NiSource and its subsidiaries is available at www.nisource.com .