WILKES-BARRE, Pa., May 14 /PRNewswire/ -- A new strategic direction,
expansion of services, improved earnings, and the most significant
restructuring program in the Corporation's history were highlighted at the
Pennsylvania Enterprises Inc. (PEI) (NYSE: PNT) Annual Meeting of Shareowners.
The meeting was held today at Montage Mountain Ski Resort, Scranton,
Pennsylvania.  Thomas F. Karam, President and CEO of PEI, said that next year
will bring even more changes to the Company.
    "In order to respond to new Customer Choice legislation and a changing
deregulated energy market, this Company has repositioned itself for the
future," Karam said.  "By acquisitions, the opportunity of alliances,
reorganization, the creation of new services, and the expansion of new
subsidiaries, PEI will transform from a traditional utility to a total energy
supplier.  At PEI, our strategic direction is clearly driven by our vision of
how best to serve our customers and we are very bullish about our ability to
succeed.  This is evident in some of the recent strategic changes we have
made."
    Some of the accomplishments of PEI noted by Karam included the
acquisitions of Keystone Pipeline Services with its national customer base and
over 100 years of pipeline experience and Honesdale Gas Company, located in
the heart of the Poconos.  According to Karam, both these new companies
complement the Company's existing services while expanding our direction into
new market areas.  Other accomplishments highlighted at the Meeting were the
restructuring of the Company's subsidiaries and the creation of new business
entities and the startup of PERI Propane.
    Karam also commented on the dramatic evolution of the energy industry and
the advent of customer choice.  He stated, "These changes have forced us to
rethink the way we will compete.  PEI will position itself to help our
customers find workable solutions that optimize a broad array of energy
products and services at competitive prices."
    In discussing the Company's real estate, Karam indicated PEI's plan is to
develop projects that are catalysts to additional economic development with
the region as well as to establish an ever increasing contribution to
earnings.
    With these many changes have come rewards.  Karam noted, "In the past
year, the Company announced a 2 for 1 stock split, two increases in our Common
Stock dividend, and a 40% increase in earnings per share for the first quarter
of 1997; financial accomplishments we are very pleased to report."
    At the Meeting, PEI shareowners reelected the eleven member Board of
Directors.  According to Kenneth L. Pollock, Chairman of the Board of
Directors of PEI, "This is a hard working Board of Directors with diverse
backgrounds in business and energy.  The shareowners' vote proves the
confidence they have in this board and their ability to provide a steady hand
in charting the course for PEI's future."  The Board of Directors reelected
were:  Kenneth L. Pollock, Chairman of the Board of PEI, owner of Susquehanna
Coal Company and Ken L. Pollock, Inc., Nanticoke; William D. Davis,
Vice Chairman of the Board of PEI and Former Chairman, Commonwealth Bank
Division of Meridian Bank in Williamsport; Thomas F. Karam, President and CEO
of PEI and PG Energy; Robert J. Keating, Former Chairman of the Board, Parodi
Industries Inc., Scranton; James A. Ross, Independent Financial Consultant,
Scranton; John D. McCarthy, President of McCarthy Tire Service Company and
McCarthy Realty, Inc., Wilkes-Barre; Ronald W. Simms, President and CEO of
Petroleum Service Company, Inc., Wilkes-Barre; Kenneth M. Pollock, Vice
President of HUD, Inc., doing business as Emerald Anthracite II, Nanticoke;
John D. McCarthy, Jr., Vice President of McCarthy Tire Service and McCarthy
Realty, Inc., Wilkes-Barre; Paul R. Freemen, Controller HUD, Inc., doing
business as Emerald Anthracite II of Nanticoke; Richard A. Rose, Jr.,
President of Petroleum Sales Company, Inc., and Vice President of Petroleum
Service Company, Inc., Wilkes-Barre.
    PEI shareowners also voted to approve a Stock Incentive Plan providing for
the issuance of 460,000 shares of common stock of PEI.
    At the organizational meeting of the Board of Directors, held after the
annual meeting, Kenneth L. Pollock, Thomas F. Karam and other existing
officers of PEI were reelected to their respective positions.  In addition,
all directors and officers of PG Energy, PEI's principal subsidiary, were
reelected to their respective positions.
    PEI is a holding company with regulated and non-regulated subsidiaries.
The Company, through its regulated utilities, PG Energy and Honesdale Gas
Company (acquired in February 1997), provides natural gas to approximately
148,000 customers in twelve counties in northeastern Pennsylvania.  The
nonregulated group consists of Theta Land Corporation and Pennsylvania Energy
Services (formerly Pennsylvania Energy Resources, Inc.) and its subsidiary,
Keystone Pipeline Services.

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