Total revenues increased $1,761,000 in 2007 compared to the prior yearmainly due to the higher fuel costs and increased revenue-based taxes thatare recovered directly from customers.

Earnings for 2007 are down significantly for the year compared to 2006primarily because of milder winter weather, causing sales of natural gasand propane to be less than last year and significantly under budget.Electric sales were also less than projected for the year due toconservation measures taken by our customers as a result of higher electricrates. Also, a slow-down in the construction industry and a decliningeconomy along with a strengthening focus on energy conservation contributedto reduced sales.

We experienced appreciably higher than usual general liability claims thisyear as cases were settled in 2007. The number of claims was not typicalfor our gas business and increased expenses in 2007 by approximately$796,000 or approximately $.08 per share. Management expects claims to becloser to normal levels for 2008. Increased costs related to complyingwith Sarbanes-Oxley requirements and continued increases in medical andpension costs continue to negatively impact our earnings as they have overthe last five years.

The Company filed an electric rate proceeding with the Florida PublicService Commission (FPSC) in the third quarter of 2007 to increase electricrates. An annual interim increase of approximately $800,000 has beenapproved beginning in November 2007 and we expect an additional final rateincrease beginning in May 2008. Management is requesting recovery for manyof the electric expense increases, as well as for additional costs toimplement new FPSC requirements to strengthen power delivery systems tominimize damage caused by future hurricanes.

Statements in this press release regarding Florida Public UtilitiesCompany's business which are not historical facts are "forward-lookingstatements" that involve risks and uncertainties. For a discussion of suchrisks and uncertainties, which could cause actual results to differ fromthose contained in the forward-looking statements, see the disclosures inthe Company's filings with the Securities and Exchange Commission.

Florida Public Utilities is primarily in the business of providing naturalgas, electric and propane gas distribution services throughout Florida.

Key operating results are summarized below:

                        Florida Public Utilities              For the years ending December 31, 2007 & 2006              (Dollars in thousands except per share data)                                                   2007            2006                                               ----------      ----------Total Revenues                                 $  136,542      $  134,781Net Income                                     $    3,301      $    4,169Earnings for Common Stock                      $    3,272      $    4,140Earnings per Common Share - basic & diluted    $      .54      $      .69Average Shares Outstanding                      6,039,767       5,993,589