News Center

WALL, N.J. – New Jersey Resources (NYSE: NJR) announced the latest actions in the company’s continued business transformation. The actions involve the sale of property and organizational restructuring to position the company to meet the challenges of the changing energy industry.

NJR’s subsidiary, Commercial Realty & Resources, which develops commercial real estate, today completed the sale of a recently constructed 200,000-square-foot building located in Monmouth Shores Corporate Office Park II to the tenant of the building, Horizon Blue Cross Blue Shield of New Jersey. This transaction resulted in a gain of $0.21 per basic share and continues NJR’s strategy of reducing its investment in the commercial real estate business.

In addition, the company recently offered a voluntary retirement program to officers of NJR and its subsidiaries as part of a restructuring plan for the organization. The early retirement program will result in a charge of $0.05 per basic share in the first quarter of fiscal 2005.

As part of the transition, the company previously announced the appointments of Kathleen T. Ellis as senior vice president of corporate affairs, Kathleen F. Kerr as vice president of marketing and customer services and Thomas J. Massaro as president and general manager of NJR Home Services.

“Our leadership team has established a strong foundation for our continued excellence in the company’s performance,” said Laurence M. Downes, chairman and CEO of NJR. “I am confident that the changes we have put in place will strengthen our organization and continue our record for consistent performance.”

Excluding the net gain of $0.16 per basic share from the above transactions, the company reiterates its earnings guidance for fiscal 2005 in the $2.65–$2.75 per basic share range, which will be the 14th consecutive year of earnings growth. This assumes normal weather, stable economic conditions and continued customer growth at New Jersey Natural Gas (NJNG) and continued volatility in the wholesale natural gas markets at NJR Energy Services (NJRES) and is subject to the factors discussed under “Forward-Looking Statements.”

Forward-Looking Statements
This news release contains estimates and other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions that form the basis for forward-looking statements regarding customer growth, financial results, capital requirements and other matters for fiscal 2005 and thereafter include many factors that are beyond the company’s ability to control or estimate precisely, such as estimates of future market conditions, the behavior of other market participants and changes in the debt and equity capital markets. Among the factors that could cause actual results to differ materially from NJR’s expectations include, but are not limited to, such things as weather and economic conditions, demographic changes in the NJNG service territory, rate of NJNG customer growth, volatility of natural gas commodity prices, the impact of the company’s risk management efforts, conversion activity and other marketing efforts, the actual energy usage patterns of NJNG’s customers, the pace of deregulation of retail gas markets, access to adequate supplies of natural gas, the regulatory and pricing policies of federal and state regulatory agencies, changes due to legislation at the federal and state level, the outcome and prosecution of litigation, the disallowance of recovery of environmental remediation expenditures, other regulatory changes and changes in and levels of interest rates. More detailed information about these factors is set forth in NJR’s filings with the Securities and Exchange Commission, including NJR’s Annual Report on Form 10-K filed on December 1, 2004. NJR’s Form 10-Q is available at www.sec.gov. NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

New Jersey Resources (NYSE:NJR), a Fortune 1000 company and a member of the Forbes Platinum 400, provides reliable retail and wholesale energy services to customers in New Jersey and in states from the Gulf Coast to New England, and Canada. Its principal subsidiary, New Jersey Natural Gas, is one of the fastest-growing local distribution companies in the United States, serving more than 450,000 customers in central and northern New Jersey. Other major NJR subsidiaries include NJR Energy Services and NJR Home Services. NJR Energy Services is a leader in the unregulated energy services market, providing outstanding customer service and management of natural gas storage and capacity assets. NJR Home Services offers retail customers expert heating, air conditioning and appliance services. NJR’s progress is a tribute to the more than 5,000 dedicated employees who have shared their expertise and focus on quality through more than 50 years of serving customers and the community to make NJR a leader in the competitive energy marketplace. For more information, visit NJR’s Web site at njliving.com.