Akron, Ohio - 09/01/04

NiSource plans to implement Virtual Hold in call centers

Virtual Hold Technology® LLC (VHT), the leading provider of intelligent queue management solutions, today announced that NiSource Inc. (NYSE:NI), a major distributor of natural gas and electricity headquartered in Merrillville, IN, has elected to implement VHT’s Virtual Hold Queue Management Solution in its call centers.

NiSource call centers are challenged with meeting increased call demand from a growing customer base while maintaining operational efficiency, in addition to the challenges common to utilities, such as: seasonal peaks in call traffic related to heating and cooling seasons; weekly and daily peaks related to billing cycles; and unpredictable “spikes” in call volume as a result of power outages and other emergencies.

Virtual Hold informs callers of their estimated wait time and allows them to select a callback in the same amount of time as if they waited on hold. Callers may also schedule a return call at a time and location that is more convenient for them. This patented return call technology has been proven to increase customer satisfaction and reduce contact center costs in dozens of implementations throughout multiple industries.

By eliminating the need for customers to wait on hold, Virtual Hold reduces the stress placed on both callers and customer service agents. Virtual Hold will seamlessly integrate into NiSource’s current enterprise architecture, leveraging existing technologies and producing immediate results.

“Finding a technology to improve our call handling to better meet customer expectations and achieve service goals was extremely important to us,” stated Violet Sistovaris, V.P., Customer Contact Centers. “These goals include reducing average speed to answer and abandoned calls in order to improve our customer satisfaction. This will not only improve the way NiSource does business but will give our customers a better overall experience with our company.”

“We are extremely pleased to welcome NiSource into the VHT family and we look forward to working with them to enhance their customers’ experience and improve their contact centers’ call handling efficiency. NiSource becomes another major utility operator on a growing list that has recognized the importance of Queue Management and we are very proud to have been selected for their Queue Management Solution,” said Mark Williams, president of VHT.

About NiSource

NiSource Inc. is a Fortune 500 holding company with headquarters in Merrillville, Ind., whose core operating companies engage in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. Information about NiSource and its subsidiaries is available at www.nisource.com.

About Virtual Hold Technology

VHT is the leadin
g provider of intelligent Queue Management Solutions for Fortune 1000 clients. Since its inception in 1995, VHT's patented award-winning Virtual Queuing technology has provided callback solutions focused on enhancing the customer experience
for financial services, energy utility, insurance, telecommunications, cable, wireless and retail corporations such as Wells Fargo, Baltimore Gas & Electric, Direct Line, BellSouth, Cox Communications, Bell Mobility, Ticketmaster and Avon. To learn how VHT's queue
management solutions can help you increase customer satisfaction and reduce contact center costs, visit www.virtualhold.com.

Virtual Hold Technology - Media Contact:
Ted Mathews
330.670.2281
tmathews@virtualhold.com

©1995-2004 Virtual Hold Technology, LLC. All rights reserved Virtual queue callback technology
protected under U.S. Patents 5,627,884; 6,563,921; 6,754,334 and other patents pending.