FACT SHEET NYSE:KSE

Company Overview Market Profile (November 30, 2002) A member of the Standard & Poor’s 500 Index, KeySpan is Stock Price Close 11/30/02: $35.29 the largest distributor of natural gas in the Northeast, and Stock Price (52 Week Range): $27.41 - $38.20 the largest investor owned electric generator in Shares Outstanding: 142.3 Million State. KeySpan has a dynamic portfolio of energy service Market Capitalization: $ 5.0 Billion companies as well as select investments along the gas Assets (12/31/01): $11.8 Billion supply chain. P/E Ratio (2002E) (FirstCall):13.3x The acquisitions of Eastern Enterprises and EnergyNorth Annual Dividend: $1.78 in 2000, make KeySpan the largest gas distribution Dividend Yield: 5.0% company in the Northeast with over 2.5 million gas EPS (2001)*: $2.53 customers and enable us to sell gas and energy services EPS (2001): $1.58 in the lucrative New England market. Projected EPS (First Call FY 2002): $2.66 KeySpan has a solid Gas Distribution business, with 1.7 Total Debt / Total Capital Ratio: 66/34 million customers in New York City and on , Gas Utility Service Territory: 4,300 Sq. Mi. and an additional 800,000 gas customers in Gas Utility Customers: 2.5 Million and New Hampshire. Our gas utilities are Electric Customers Served (for LIPA): 1.1 Million the income drivers of the company. Electric Generation Capacity: 6,400 MW KeySpan provides Electric Service to 1.1 million Long *Excluding special charges, and including discontinued operations. Island Power Authority (LIPA) customers. We own and (E - Estimate) operate approximately 6,400 MegaWatts (MW) of generating capacity which serve the capacity short New York City and Long Island markets. Two new 79MW generation units went on-line on Long Island at the beginning of the summer of 2002. We have started Consolidated Results construction on a 250MW generation facility in NYC, ($MM Except Per Share Amounts) which should be completed by the end of 2003. We are also in the approval phase for an additional 250MW facility on Long Island, with completion planned for 2005. 9 Mos. Ended 9/30 Year Ended 12/31 2001 2002 1999 2000 2001 KeySpan’s Energy Services business provides a full array Revenues: $5, 017 $4,167 $2,955 $ 5,081 $6,633 of energy products and services in the lucrative Northeast Operating Income: $ 597 $ 596 $ 482 $ 733 $ 801 market. EBIT $ 597 $ 605 $ 529 $ 721 $ 808 Our Energy Investments sector includes a solid Earnings for Common: $ 179 $ 224 $ 224 $ 283 $ 218 Exploration and Production business and Other Basic EPS: $ 1.30 $ 1.60 $ 1.62 $ 2.10 $ 1.58 Investments that utilize our gas and electric core Diluted EPS: $ 1.28 $ 1.58 $ 1.62 $ 2.09 $ 1.56 competencies in a few select regions. EPS Continuing Ops $ 1.25 $ 1.74 We have investments in new technologies such as distributed generation and our strategically located telecommunications network on Long Island. KeySpan We are financially solid with an approximate $5 billion Our Vision is to become the premier energy company in the ‘market cap’, a healthy dividend yield of approximately 5%, Northeastern United States. The Northeast region represents a and a strong balance sheet. significant part of the country’s population and gas and electricity consumption. Our Strategy is built upon two key growth drivers: 1) Growing our gas business by converting customers to natural gas, and Asset Mix 2) Building or acquiring new power plants. In addition to these as of 12/31/01 key drivers, we will focus on bundling energy products and services, while divesting our non-core assets. We also have ($ in millions) $585 $6,994 plans to build gas pipelines to access new gas supply basins. Energy Gas Distribution Services

$797 Energy Related $1,641 More information on KeySpan can be found on our website - Investments http://investor.keyspanenergy.com Electric $951 KeySpan Investor Relations Team Exploration & Michael Taunton, Vice President and Treasurer: (718) 403-3265 Production George Laskaris, Director: (718) 403-2526 Frank Lombardo (718) 403-2359 Ellen Kessler: (718) 403-6977 Business Segments

Gas Distribution - KeySpan Energy Delivery (KED) is the largest gas distribution company in the Northeast United States with a service territory of over 4,300 square miles. KeySpan operates several utilities which provide gas service to 2.5 million customers in the New York City boroughs of , and Staten Island, in Long Island’s Nassau and Suffolk counties, and in Massachusetts and New Hampshire. KeySpan has a long successful record in converting homes and businesses to natural gas in New York and has successfully taken this expertise to the lucrative Long Island and New England markets. In 2001, KED completed more than 50,000 gas installations, which added $62 million in GPM -- an increase of 13% from the previous year.

Electric Services Generation – KeySpan owns and operates fossil-fuel generating plants on Long Island and New York City with an aggregate capacity of approximately 6,400 megawatts. KeySpan has a 15-year contract with The Long Island Power Authority (LIPA) to deliver the 4,000 MW of power generated by the 5 Long Island plants to the 1.1 million customers in Nassau and Suffolk Counties. LIPA has an option, which expires in May 2005, to purchase these plants at fair market value. The capacity of our 2,200 MW Ravenswood plant in New York City provides 25% of the peak capacity needs of New York City’s electric customers. This past Summer, we added 158MW of new generation on Long Island, which is also under long term contract to LIPA. We have started construction on a 250MW facility in NYC, which should be on line by the end of 2003. Approvals are pending for an additional state-of-the-art 250MW facility on Long Island, which is expected to be on line in 2005. Transmission & Distribution (T&D) - KeySpan manages the electric T&D system for more than one million electric customers in Nassau and Suffolk counties and the Rockaway Peninsula of Queens County under a contract with LIPA. Our T&D system is among the most reliable in New York State. In fact, we had the least frequent outages and the fastest restoration time of any overhead electric utility in New York State in 2001 for the third consecutive year.

Energy Services - KeySpan Services is growing quickly and plays a critical role in the KeySpan story. This group of subsidiaries takes advantage of the many opportunities offered by the deregulated energy markets. Our energy services business leverages the strong customer relationships resulting from our excellent utility service.

Home Energy Services •Service Contracts and Plumbing - a leading heating, cooling and appliance repair business in the New York / New Jersey / New England area, with more than 200,000 service contracts for residential and commercial customers. •Retail Energy Sales - an energy marketing business that buys, sells and markets gas and electricity, and arranges transportation and delivery to over 70,000 customers across 6 states. Energy is offered at competitive prices to residential and small business customers. Business Solutions - owns, designs and/or operates energy systems and conducts energy audits for approximately 2,000 large commercial and industrial customers with energy-intensive operations. KeySpan also owns a fiber optic network -- covering 650 route- miles or 65,000 fiber miles -- which transverses Long Island and part of New York City and has several access points to Trans-Atlantic cable systems that run to London and Paris.

Energy Investments Exploration & Production (E&P) – The Houston Exploration Company (NYSE: THX) is engaged in the exploration, development and acquisition of domestic natural gas and oil properties. Our E&P production increased from 80 Bcfe in 2000 to 94 Bcfe in 2001, an increase of 17%, and average realized gas prices increased by 25% from $3.38/Mcf in 2000 to $4.24/Mcf in 2001. THX’s proved reserves were 608 Bcfe as of 12/31/2001. In 2001, our E&P business contributed annual EBIT of $161 million compared to $112 million in 2000. Other Investments – KeySpan has investments in natural gas pipelines, midstream natural gas processing and gathering facilities, and gas storage facilities in the Northeast region of the United States, Canada and the United Kingdom. On July 2, 2002, KeySpan completed the sale of Midland Enterprises to Ingram Industries, Inc. for $240 million, as well as the assumption of approximately $135 million in debt by Ingram. The sale of Midland was completed right on schedule, and is a major step forward in KeySpan's strategy to divest non-core businesses. KeySpan Canada - KeySpan Canada, the leading independent midstream services company in Western Canada, has interests in 14 gas processing plants and associated gathering systems -- processing approximately 1 billion cubic feet of natural gas per day. Domestic Pipelines - The Company owns 20.4% of the 375-mile Iroquois natural gas pipeline with a throughput of 345 Bcfe per year. The pipeline runs from the U.S. Canadian border to upstate New York. KeySpan also has a 50% interest in the proposed Islander East pipeline that would run from Connecticut to Long Island. Premier Transco Pipeline – KeySpan owns 50% of this 84-mile natural gas pipeline with a capacity of 300 million cubic feet per day, which transports natural gas from Scotland to Northern Ireland. KeySpan also owns 24.5% of the Phoenix Natural Gas distribution system which serves Belfast, Northern Ireland.

November 30, 2002