Total revenues increased $8,908,000 in the second quarter of 2008 comparedto the same period in 2007, primarily due to the higher fuel costs andassociated taxes that are recovered directly from customers. A final annualelectric rate increase of approximately $3,900,000 a year was approved inApril 2008, with the new rates beginning May 22, 2008. These revenuesincreased overall profitability for the electric segment and managementexpects they will continue to offset increased expenditures includingdepreciation, storm readiness mandates and initiatives and other expensesthroughout 2008.

Usage per customer was down and management believes it is due toconservation measures taken by the Company's gas and electric customers asa result of recent fuel increases and the slowdown in the economy. Althoughgross profit increased for the quarter, earnings for the second quarter of2008 were lower due to higher operating expenses. Earnings for the secondquarter and year to date ending June 30, 2008 were lower than the prioryear primarily due to nonrecurring professional fees and expenses incurredin the second quarter of 2008 of approximately $500,000, associated withstrategic development activity no longer ongoing. The impact to net incomefor the effects of these nonrecurring expenses, is $304,000 after incometaxes or $.05 per share for the quarter and year to date ending June 30,2008.

Depreciation expense also increased. New plant additions and increaseddepreciation rates in our electric segment that became effective January 1,2008 caused depreciation expense to increase by $175,000 in the secondquarter of 2008 compared to the same period in 2007. Due to the timing offinal rate recovery in the electric segment, the depreciation expenseincrease as a result of increased electric depreciation rates was not fullyrecovered in the first half of 2008. Management believes that the electricdepreciation increase for the remainder of 2008 will be fully offset by theincrease in the revenues as a result of this recent electric final raterecovery.

The Company plans to file a request with the FPSC in the fourth quarter of2008 for a base rate increase in its natural gas segment. This request willinclude recovery of increased expenses and a return and some recovery ofcapital expenditures since the Company's last rate proceeding in 2004.Finalization of this request and approval, if any, of a natural gas baserate increase would not occur until mid 2009. Possible interim rate relieffor partial recovery of the increased expenditures may occur in early 2009.Management believes these rate increases and the related revenue increasewill increase the overall profitability for the natural gas segmentbeginning in mid 2009 and offset many increased expenditures and lostrevenues from the reduction in units sold due to possible conservationmeasures taken by customers during 2008.

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

This press release contains forward-looking statements including thoserelating to the expectations of management that revenues for the electricsegment will continue to offset increased expenditures includingdepreciation, storm readiness mandates and initiatives and other expensesthroughout 2008; that the electric depreciation increase for the remainderof 2008 will be fully offset by the increase in the revenues as a result ofthe recent electric final rate recovery; and that requested rate increases,if granted, and the related revenue increase will increase the overallprofitability for the natural gas segment beginning in mid 2009 and offsetmany increased expenditures and lost revenues from the reduction in unitssold due to possible conservation measures taken by customers during 2008.These statements involve certain risks and uncertainties. Actual resultsmay differ materially from what is expressed in such forward-lookingstatements. Important factors that could cause actual results to differmaterially from those expressed by the forward-looking statements include,but are not limited to, those set forth in "Risk Factors" in our Form 10-Kfor the year ended December 31, 2007.

Key operating results for the second quarter and year to date 2008 and 2007are summarized below:

                         Florida Public Utilities               (Dollars in thousands except per share data)                                     Three Months          Six Months                                    Ended June 30,       Ended June 30,                                   2008       2007       2008       2007                                ---------- ---------- ---------- ----------Total Revenues                  $   41,376 $   32,468 $   86,406 $   71,080Net Income                      $       81 $      410 $    2,031 $    2,208Earnings for Common Stock       $       74 $      403 $    2,017 $    2,194Earnings per Common Share - basic & diluted                        $      .01 $      .07 $      .33 $      .36Average Shares Outstanding       6,078,446  6,030,928  6,075,005  6,027,833