Today Central Valley Gas Storage, L.L.C. (“Central Valley”), a subsidiary of Nicor Inc. (NYSE: GAS) of Naperville, Illinois, announced that it will hold a non-binding open season for firm storage services beginning April 1, 2012. The open season will begin on October 12, 2009 and extend through November 12, 2009.

Central Valley is continuing the process of developing the new, strategically located, underground natural gas storage facility north of Sacramento near the town of Princeton, California in Colusa County on Pacific Gas and Electric Company’s (PG&E) gas transmission system.

Following an open season held in 2008, Central Valley has continued to develop the project, including finalizing certain binding market commitments for the project. Central Valley also recently filed an application for a Certificate of Public Convenience and Necessity (CPCN) with the California Public Utilities Commission (CPUC) in August 2009 requesting authorization to construct and operate an 8 Bcf underground natural gas storage facility. Pending all necessary approvals, Central Valley is anticipating issuance of the certificate in mid 2010 and expects to provide firm storage services by April 2012.

The Central Valley natural gas storage project is a high deliverability depleted reservoir that is expected to provide negotiated multi-turn services based on prospective customers requirements. The facility is strategically situated in northern California and will have an interconnect into PG&E’s gas transmission system. The interconnect point will be considered a PG&E city gate point similar to other independent storage facilities connected to the PG&E system.

“After our initial open season revealed such strong interest in our project, we decided to proceed through the regulatory process and file for certification approval with the C.P.U.C.,” said Steve Cittadine, President of Central Valley Gas Storage, L.L.C. “As a result of our ongoing development efforts, which included drilling a test well in May of this year, we have a more complete understanding of the field’s initial capabilities through core samples and are able to offer additional services to the California market. We believe Central Valley’s geographic location and service profile offers an excellent complement to new infrastructure being developed to serve west coast markets and will facilitate more effective use of natural gas as renewable energy mandates take shape in California.”

For additional information on Central Valley Gas Storage, L.L.C., and the upcoming open season, parties are encouraged to contact John Fortman at (630) 245-7845 or jfortma@nicor.com. Information can also be obtained by visiting the company Web site www.cvgasstorage.com.

Nicor Inc. (NYSE: GAS) is a holding company and is a member of the Standard & Poor’s 500 Index. Its primary business is Nicor Gas, one of the nation’s largest natural gas distribution companies. Nicor owns Tropical Shipping, a containerized shipping business serving the Caribbean region and the Bahamas. In addition, the company owns and has an equity interest in several energy-related businesses. For more information, visit the Nicor Web site at www.nicor.com.

Central Valley Gas Storage, L.L.C. is a subsidiary of Nicor Inc. with offices in Lisle, Illinois, specializing in gas storage services serving the California markets. For more information, visit the Central Valley Gas Storage Web site at www.cvgasstorage.com.

Caution Concerning Forward-Looking Statements

This document includes certain forward-looking statements about the expectations of Nicor and its subsidiaries and affiliates. Although Nicor believes these statements are based on reasonable assumptions, actual results may vary materially from stated expectations. Such forward-looking statements may be identified by the use of forward-looking words or phrases such as “anticipate,” “believe,” “expect,” “intend,” “may,” “planned,” “potential,” “should,” “will,” “would,” “project,” “estimate,” “ultimate,” or similar phrases. Actual results may differ materially from those indicated in the company’s forward-looking statements due to the direct or indirect effects of legal contingencies (including litigation) and the resolution of those issues, including the effects of an ICC review, and undue reliance should not be placed on such statements.

Other factors that could cause materially different results include, but are not limited to, weather conditions; natural disasters; natural gas and other fuel prices; fair value accounting adjustments; inventory valuation; health care costs; insurance costs or recoveries; legal costs; borrowing needs; interest rates; credit conditions; economic and market conditions; accidents, leaks, equipment failures, service interruptions, environmental pollution, and other operating risks; tourism and construction in the Bahamas and Caribbean region; energy conservation; legislative and regulatory actions; tax rulings or audit results; asset sales; significant unplanned capital needs; future mercury-related charges or credits; changes in accounting principles, interpretations, methods, judgments or estimates; performance of major customers, transporters, suppliers and contractors; labor relations; and acts of terrorism.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Nicor undertakes no obligation to publicly release any revision to these forward-looking statements to reflect events or circumstances after the date of this release.