Sempra Energy Unit Unveils New Fiber-in-Gas Technology, Launches Newest Subsidiary

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For Immediate Release

Sempra Energy Unit Unveils New Fiber-in-Gas Technology, Launches Newest Subsidiary

Sempra Fiber Links Solves 'Last Mile' Telecommunications Problem

CALIFORNIA, SAN DIEGO, Jul. 18 -/E-Wire/-- SAN DIEGO Sempra Communications, a subsidiary of Sempra Energy (NYSE:SRE - news), today unveiled new technology to tackle the telecommunications industry's "last mile' problem -- getting fiber-optic cable from outlying networks into buildings -- by utilizing the national network of natural gas distribution pipelines.

Sempra Communications has invented a proprietary, patent-pending process to place fiber-optic cables into the existing infrastructure of natural gas pipelines. It will market the technology through a new subsidiary called Sempra Fiber Links.

"Demand for broadband service in metropolitan areas is greater than ever,' said Donald E. Felsinger, group president of Sempra Energy. "The most significant obstacle to meeting that demand is the laying of fiber-optic cable under city streets -- traditionally a slow, costly and disruptive process. With our cleaner, quicker and less expensive process, enhanced services and new revenue streams will flourish.'

The Sempra Fiber Links process encases the fiber-optic cable in a polyethylene conduit that is inserted into natural gas distribution lines. The conduit is the same material used in plastic gas distribution pipes all over the world. Because gas pipelines already are in place underground, the Sempra Fiber Links technology does not require large-scale trenching in streets and sidewalks traditionally done to lay fiber lines.

"While we see telecom companies racing to get fiber in the ground, city governments are halting the process because of its terribly disruptive nature,' said Michael Allman, president of Sempra Communications. "Our new technology does not require significant street trenching, traffic disruption and re-planning underground systems.'

Allman said that the process is much quicker than traditional installation of fiber, because of its less invasive and less labor-intensive method. It also does not inhibit the gas utility from performing any duties necessary to protect public safety.

"We foresee tremendous opportunities for our process to spread throughout cities anywhere that have existing natural gas infrastructure in place -- most developed cities in the world,' Allman said.

Michael Clover has been appointed president of Sempra Fiber Links. Clover has 26 years of experience in the telecommunications industry, most of which he spent serving in several executive positions at Sprint Corp. He also was an executive at several regional telephone companies, including Carolina Telephone, United Telephone and Michigan Bell.

"We are thrilled to be introducing this opportunity to create high-speed broadband infrastructure, without the urban planning and street-trenching problem that have, until now, gone hand-in-hand with constructing advanced telecommunications services,' said Clover. "We have an innovative solution that effectively meets the needs of the marketplace.'

Sempra Communications provides telecommunications infrastructure and services to selected national and international markets.

Sempra Energy (NYSE: SRE - news), based in San Diego, is a Fortune 500 energy services holding company with annualized 2001 revenues of about $13 billion. Through its eight principal subsidiaries -- Southern California Gas Company, San Diego Gas & Electric, Sempra Energy Solutions, Sempra Energy Trading, Sempra Energy International, Sempra Energy Resources, Sempra Communications and Sempra Energy Financial -- the Sempra Energy companies' 12,000 employees serve more than 9 million customers in the United States, Europe, Canada, Mexico, South America and Asia.

Sempra Energy Solutions, Sempra Energy Trading, Sempra Energy International, Sempra Energy Resources and Sempra Energy Financial are not the same companies as the utilities, SDG&E;/SoCalGas, and are not regulated by the California Public Utilities Commission.

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