Cascade Natural Gas Corporation Announces Executive Restructuring

Julie Marshall is being promoted to Vice President -- CustomerService. Julie will oversee call center operations, marketing andsales. Julie was most recently Director -- Customer Service and holdsa BA in Sociology from the University of Washington. She has been withCascade since 1973, holding positions of increasing responsibility inCustomer Service activities. Mike Gardner is being promoted to VicePresident -- Operations. Mike was most recently Executive Director --District Operations for Cascade. He has been with Cascade since 1991,holding positions of increasing responsibility in Engineering andDistrict Operations. He has a BS in Mechanical Engineering from theUniversity of Washington and received an Executive MBA from theUniversity of Washington in 2003. The Chief Operating Officer positionis being eliminated in the restructuring. Will Odell, who has servedas COO, will be departing the Company.

"I am confident that with the experience, knowledge and history ofeffective execution, Mike Gardner and Julie Marshall will providestrong leadership in these new positions as Cascade moves forward,"said David Stevens.

Cascade Natural Gas Corporation, a natural gas distributioncompany, serves approximately 227,000 residential, commercial,industrial and transportation customers in 93 communities inWashington and Oregon. More information is available at www.cngc.com.

Statements contained in this report that are not historical innature are forward-looking statements within the meaning of thePrivate Securities Litigation Reform Act of 1995. Forward-lookingstatements are subject to risks and uncertainties that may causeactual future results to differ materially. Such risks anduncertainties with respect to the Company include, among others, itsability to successfully implement internal performance goals,competition from alternative forms of energy, consolidation in theenergy industry, natural gas prices, performance issues with keynatural gas suppliers and upstream pipelines, the capital-intensivenature of the Company's business, regulatory issues, including theneed for adequate and timely rate relief to recover capital andoperating costs and to sustain dividend levels, the weather,increasing competition brought on by deregulation initiatives at thefederal and state regulatory levels, the potential loss of largevolume industrial customers due to "bypass" or the shift by suchcustomers to special competitive contracts at lower per-unit margins,exposure to environmental cleanup requirements, and economicconditions, particularly in the Company's service area.