ST. LOUIS, Jan. 31 /PRNewswire-FirstCall/ -- Today, The Laclede Group, Inc. (NYSE: LG) released earnings for the first quarter of its 2008 fiscal year.

"Our quarterly results support our strategy of building a foundation for earnings that is broader than just our regulated utility business, as Laclede Energy Resources, one of our non-regulated subsidiaries, demonstrated solid year-over-year earnings growth," said Douglas Yaeger, Chairman, President and Chief Executive Officer of The Laclede Group.

-- Diluted earnings per share increased to $.97 from $.89 for same quarter in prior year. Consolidated earnings for Laclede Group's quarter ended December 31, 2007, were $20.9 million compared to $19.1 million for the same period last fiscal year. Diluted earnings per share increased 9% to $.97 for the first quarter this year, from diluted earnings of $.89 per share for the quarter ended December 31, 2006.

-- Laclede Energy Resources led the way. The improved results are largely attributable to higher earnings reported by Laclede Group's non-regulated natural gas commodity service provider, Laclede Energy Resources, Inc. (LER), which earned $1.8 million more compared to the first quarter of last fiscal year due primarily to increased margins on its sales of natural gas, with a lesser benefit from increased sales volumes during the quarter.

-- Utility's financial results remain strong and stable. Earnings reported by Laclede Gas Company, Missouri's largest natural gas distribution utility, were $15.8 million, which is slightly better than last year's results for the same period. This period was the first full quarter impacted by the general rate increase that became effective August 1, 2007, which, among other things, provides the Utility greater earnings stability and recovery of its distribution costs. The results were downwardly impacted by an unusually late start to the heating season, a change in the sharing mechanism for off-system sales and capacity release revenues, and higher maintenance and operating costs.

-- SM&P. Results reported by SM&P Utility Resources, Inc., Laclede Group's non-regulated underground facility locating and marking service business, decreased $0.2 million from the same period last year. This decrease was primarily due to higher operating costs, partially offset by a $.9 million increase in revenues year over year.

For further details concerning The Laclede Group's fiscal 2008 first quarter results, see the accompanying unaudited Statements of Consolidated Income.

About The Laclede Group

The Laclede Group, Inc. is a public utility holding company committed to providing reliable natural gas service through its regulated core utility operations, while engaging in non-regulated activities that provide opportunities for sustainable growth. Its primary subsidiary, Laclede Gas Company, the regulated operations of which are included in the Regulated Gas Distribution segment, serves approximately 632,000 residential, commercial and industrial customers in the City of St. Louis and ten other counties in Eastern Missouri. Laclede Group's primary non-regulated activities include Laclede Energy Resources, Inc., which is headquartered in St. Louis, Missouri and included within the Non-Regulated Gas Marketing segment, and SM&P Utility Resources, Inc., which is headquartered in Carmel, Indiana and included in the Non-Regulated Services segment. For more information about Laclede Group and its subsidiaries, visit http://www.thelacledegroup.com.

Note: This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, governmental and regulatory policy and action, the competitive environment and economic factors. For a more complete description of these uncertainties and risk factors, see the Company's Form 10-K for the year ended September 30, 2007, filed with the Securities and Exchange Commission.





                                 UNAUDITED
    STATEMENTS OF CONSOLIDATED INCOME
    THE LACLEDE GROUP, INC.
    (Thousands, Except Per Share Amounts)

                                                      Three Months Ended
                                                          December 31,
                                                      2007          2006

    OPERATING REVENUES
      Regulated
        Gas distribution                            $320,892       $348,488
      Non-Regulated
        Services                                      37,362         36,429
        Gas marketing                                181,798        153,467
      Other                                            1,299          1,177
          Total operating revenues                   541,351        539,561

    OPERATING EXPENSES
      Regulated
        Natural and propane gas                      222,841        251,523
        Other operation expenses                      35,213         33,680
        Maintenance                                    6,235          5,598
        Depreciation and amortization                  8,713          8,497
        Taxes, other than income taxes                16,681         18,759
          Total regulated operating expenses         289,683        318,057
      Non-Regulated
        Services                                      37,699         36,361
        Gas marketing                                172,872        147,668
      Other                                            1,051          1,077
          Total operating expenses                   501,305        503,163
    Operating Income                                  40,046         36,398
    Other Income and (Income Deductions) - Net         2,650          3,303

    Interest Charges:
      Interest on long-term debt                       5,126          5,626
      Interest on long-term debt to unconsolidated
       affiliate trust                                   893            893
      Other interest charges                           4,163          3,434
          Total interest charges                      10,182          9,953
    Income Before Income Taxes and Dividends on
     Redeemable Preferred Stock - Laclede Gas         32,514         29,748
    Income Tax Expense                                11,601         10,649
    Dividends on Redeemable Preferred Stock -
     Laclede Gas                                          10             12
    Net Income                                       $20,903        $19,087

    Average Number of Common Shares Outstanding       21,554         21,381
    Basic Earnings Per Share of Common Stock          $ 0.97         $ 0.89
    Diluted Earnings Per Share of Common Stock        $ 0.97         $ 0.89

SOURCE The Laclede Group, Inc.