Agreement to Sell KMI to Investor Group Receives Approval From Three State Regulatory Commissions

    HOUSTON, March 2 /CNW/ -- Kinder Morgan, Inc. (NYSE:   KMI) today announced
that state regulatory utility commissions in Colorado, Nebraska and Wyoming
have approved the proposed acquisition of KMI by investors including Chairman
and CEO Richard D. Kinder, other senior members of KMI management, co-founder
Bill Morgan, current board members Fayez Sarofim and Mike Morgan, and
affiliates of Goldman Sachs Capital Partners, American International Group,
Inc., The Carlyle Group and Riverstone Holdings LLC.
    KMI shareholders voted in December 2006 to approve the proposed merger
agreement, and the only remaining approval is from the California Public
Utilities Commission (CPUC).  The CPUC previously issued a procedural schedule
which could delay the closing of the transaction until the second quarter of
2007, but the company is working diligently to try to expedite the matter.
Because all of the regulatory approvals have not yet been obtained, the
termination date for the going private transaction has been extended to Aug.
28, 2007, in accordance with the merger agreement.
    Under the terms of the merger agreement, promptly following the closing
of the merger, KMI stockholders (other than Knight Holdco LLC, Knight
Acquisition Co., subsidiaries of KMI, stockholders who have perfected their
appraisal rights under Kansas law and stockholders defined in the KMI proxy
statement as Rollover Investors) will receive $107.50 in cash, without
interest, for each share of KMI common stock held.  This represents a premium
of approximately 27 percent over $84.41, the closing price of KMI stock on
Friday, May 26, 2006, the last trading day before the investor group made its
proposal to take the company private.
    Kinder Morgan, Inc. is one of the largest energy transportation, storage
and distribution companies in North America.  It owns an interest in or
operates approximately 43,000 miles of pipelines that transport primarily
natural gas, crude oil, petroleum products and CO2; more than 150 terminals
that store, transfer and handle products like gasoline and coal; and currently
provides natural gas distribution service to over 1.1 million customers.  KMI
owns the general partner interest of Kinder Morgan Energy Partners (NYSE:  
KMP), one of the largest publicly traded pipeline limited partnerships in the
United States.  Combined, the companies have an enterprise value of more than
$35 billion.
    This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.  Those forward-
looking statements include all statements other than those made with respect
to historical fact.  Numerous risks, uncertainties and other factors may cause
actual results to differ materially from those expressed in any forward-
looking statements.  These factors include, but are not limited to, (1) the
occurrence of any event, change or other circumstance that would give rise to
the termination of the merger agreement, (2) the outcome of any legal
proceedings that have been or may be instituted against KMI and/or others
relating to the merger agreement, (3) the inability to complete the merger due
to the failure to satisfy other conditions to consummation of the merger,
including other regulatory approvals, (4) the failure to obtain the necessary
debt or equity financing set forth in commitment letters received by Knight
Holdco in connection with the merger, (5) the failure of the merger to close
for any other reason, (6) the effect of the announcement of the merger on our
customer relationships, operating results and business generally, (7) the
risks that the proposed transaction disrupts current plans and operations and
the potential difficulties in employee retention as a result of the merger,
(8) the amount of the costs, fees, expenses and other charges related to the
merger and actual terms of financings that will be obtained for the merger,
and (9) the impact of the substantial indebtedness incurred to finalize the
consummation of the merger.  There may be other events in the future that KMI
is not able to accurately predict or over which it has no control.  The risk
factors listed in KMI's Annual Report on Form 10-K for the year ended Dec. 31,
2005, filed with the SEC and subsequently filed Forms 10-Q and 8-K, provide
examples of risks, uncertainties and events that may cause its actual results
or matters relating to the merger to differ materially from the expectations
described in forward-looking statements.  KMI undertakes no obligation, other
than as required by applicable law, to update publicly any forward-looking
statements in light of new information or future events.

For further information:

For further information: Larry Pierce, Media Relations, +1-713-369-9407,
 or Mindy Mills, Investor Relations, +1-713-369-9490, both of Kinder Morgan, 
Inc. Web Site:

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