Agreement to Sell KMI to Investor Group Receives Antitrust Clearance


HOUSTON, Jan. 25 -- Kinder Morgan, Inc. (NYSE:KMI) today announced it has received Hart-Scott-Rodino Antitrust Improvements Act clearance for 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 (Carlyle) and Riverstone Holdings LLC (Riverstone).

The Federal Trade Commission (FTC) challenged the participation of Carlyle and Riverstone because a joint venture between those entities owns interests in other energy companies. Carlyle and Riverstone reached a settlement with the FTC that clears the way for the acquisition of KMI to proceed.

KMI shareholders voted in December 2006 to approve the proposed merger agreement, and the only outstanding approvals are from state regulatory utility commissions in California, Colorado, Nebraska and Wyoming. The California Public Utilities Commission this week issued a procedural schedule which could delay the closing of the transaction until the second quarter of 2007. The company is still hopeful that the transaction can be closed in the first quarter of 2007 and plans to work diligently with the Commission to try to expedite the matter.

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 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.

FCMN Contact: maureen_bulkley@kindermorgan.com

Source: Kinder Morgan, Inc.

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