ENERGY, INC. is an energy supplier and gas utility company serving approximately 61,600 customers in Montana, Wyoming, North Carolina, Maine, Ohio and Pennsylvania. We recently completed the acquisition of 83% of the common shares of Cut Bank Gas, a gas distribution company in Cut Bank, MT with approximately 1,500 gas customers. In January 2010, we completed completed the acquisitions of the parent companies of Orwell Natural Gas Company and Northeast Ohio Natural Gas Corp. (NEO), and Brainard Gas Corp., as well as Great Plains Land Development, LTD. (GPL). These entities will contribute an additional 23,131 gas distribution customers to our consolidated operations.

As a result of our success in strengthening our core business, we are now able to focus on our growth strategy which includes the acquisition and expansion of our natural gas utility operations in small and emerging markets. We regularly evaluate gas utilities of varying sizes for potential acquisition. Our acquisition strategy includes identifying geographic areas that have low market saturation rates in terms of natural gas utilization as a result of historical reliance by customers on alternative fuels such as heating oil. We intend to look for acquisitions in Montana and Wyoming that are complementary to our existing business.

Information contained herein contains some forward looking statements concerning the future and expectations of management. These statements are made in good faith and management believes they are reasonable representations of expected performance at the time this report was prepared. Actual results may vary from stated expectations due to a variety of factors. One such factor is the weather that has a direct impact on the company’s weather sensitive sales. Another is the regulatory treatment provided by the three States in which the Company owns local distribution utilities.