Mr. Myles Dougan reports

ALTAGAS ANNOUNCES OFFERING OF PREFERRED SHARES

AltaGas Ltd. will issue six million cumulative redeemable five-year fixed-rate reset preferred shares, Series A, at a price of $25 per Series A preferred share for total gross proceeds of $150-million on a bought-deal basis with a syndicate of underwriters, led by TD Securities Inc., RBC Capital Markets and CIBC World Markets Inc.

Holders of the Series A preferred shares will be entitled to receive a cumulative quarterly fixed dividend for the initial period ending on but excluding Sept. 30, 2015, at an annual rate of 5.00 per cent, payable on the last day of March, June, September and December, as and when declared by the board of directors of AltaGas. The first quarterly dividend payment is payable on Dec. 31, 2010, and shall be 45.89 cents per Series A preferred share. The dividend rate will reset on Sept. 30, 2015, and every five years thereafter at a rate equal to the sum of the then five-year government of Canada bond yield plus 2.66 per cent. The Series A preferred shares are redeemable by AltaGas, at its option, on Sept. 30, 2015, and on Sept. 30 of every fifth year thereafter.

Holders of Series A preferred shares will have the right to convert all or any part of their shares into cumulative redeemable floating-rate preferred shares, Series B, subject to certain conditions, on Sept. 30, 2015, and on Sept. 30 of every fifth year thereafter. Holders of Series B preferred shares will be entitled to receive a cumulative quarterly floating dividend at a rate equal to the sum of the then 90-day government of Canada treasury bill yield plus 2.66 per cent, as and when declared by the board of directors of AltaGas.

The offering is expected to close on or about Aug. 19, 2010. Net proceeds will be used to reduce outstanding indebtedness under the company's credit facilities, thereby strengthening its balance sheet and giving it the financial flexibility to support, among other things, construction activities related to the Forrest Kerr project.

The Series A preferred shares will be issued pursuant to a prospectus supplement that will be filed with securities regulatory authorities in Canada under the company's short-form base shelf prospectus dated July 15, 2010. An application has been made to list the Series A preferred shares on the Toronto Stock Exchange as of the closing date. The offering is subject to receipt of all necessary regulatory and stock exchange approvals.