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• NJR’s 12 consecutive years of higher earnings is a record unmatched by any U.S. natural gas or electric utility
• NJNG adds 11,044 customers in fiscal 2003; now serves 446,000 customers

HOLMDEL, N.J. – Laurence M. Downes, chairman and CEO of New Jersey Resources (NYSE: NJR), today reviewed NJR’s financial and operating performance in fiscal 2003 at the 49th NJR Annual Shareowners Meeting at the PNC Bank Arts Center in Holmdel. The meeting highlighted the many milestones achieved during the year of continued growth and progress for the company.

“Fiscal 2003 was another strong year for NJR, focusing on our primary mission to provide safe, reliable and affordable natural gas service,” Mr. Downes said. “Through the dedicated efforts of our team, we marked our 12th consecutive year of higher earnings, a record of consistency that, to our knowledge, is unparalleled among all electric and natural gas utilities in the nation.”

Strong customer growth at NJR’s principal subsidiary, New Jersey Natural Gas (NJNG), along with outstanding wholesale results at NJR Energy Services (NJRES), NJR’s unregulated wholesale energy services subsidiary, were the primary drivers of profitability in fiscal 2003. NJNG’s customer growth rate of approximately 2.5 percent is well above the national average for natural gas distribution companies. Earnings for NJRES increased by 79 percent from last year, primarily through growth in natural gas supply, pipeline capacity and storage management activities.

“Our track record of consistent performance and growth reflects the reliability that is a part of all our operations, from the service we provide to the investment decisions we make to our role as a responsible corporate citizen,” Mr. Downes said. “Reliability at all levels of our organization is the ultimate measure of our accountability and a commitment we keep every day.”

Milestones and achievements during fiscal 2003 included:

• Surpassing $1 billion in market capitalization for the first time in NJR’s history.
• Marking 10 years since NJNG’s last request for an increase in traditional base rates – the longest streak among all the state’s utilities, including natural gas, electric and water companies.
• Achieving, for the 11th consecutive year, the lowest number of inquiries to the New Jersey Board of Public Utilities (BPU) per 1,000 customers among the state’s major utilities.
• Receiving upgrades in NJNG’s corporate credit ratings from two independent firms, Moody’s Investors Service and Standard & Poor’s.

“Our accomplishments are possible because of our employees’ never-ending focus on excellence,” Mr. Downes said. “Their efforts have resulted in a return to shareowners that has consistently outperformed our peer group and earned our company a well-deserved reputation for reliable performance.”

NJNG continues to work with the BPU and the Office of the Ratepayer Advocate (RPA) on innovative programs to manage natural gas costs and achieve the best possible prices for customers. Under an incentive program developed in partnership with the BPU and the RPA, margins from NJNG’s sale of unused natural gas and pipeline capacity are shared with customers and shareowners. Since these programs began in 1992, NJNG customers have saved over $205 million, representing an annual savings of approximately 5 percent on customers’ bills, while more than $1.20 per share has been generated for shareowners. On October 22, 2003, regulators approved a 3-year extension to NJNG’s off-system sales and capacity management programs and a new storage management incentive on a pilot basis for one year.

In fiscal 2003, NJR expanded existing corporate education initiatives, including the long-standing Project Venture mentoring program, to create the Energy for Education program. The program, which aligns with the state’s educational goals, includes sponsorship of Governor McGreevey’s Book Club to encourage students to discover the joy of reading, and a newly launched Job Shadowing program, which provides lessons in the heating, ventilation and air conditioning field to vocational students who accompany employees at work.

NJR employees again participated in a wide range of community service activities through the company’s Volunteers Inspiring Service in Our Communities (VISION) program. More than 2,500 hours were volunteered to support local community events and activities in fiscal 2003. The company’s annual Gift of Warmth fund raised over $228,000 in fiscal 2003 to help families stay warm during the winter months. NJNG also distributed 20,000 free carbon monoxide detectors to customers with limited incomes through the company’s continuing commitment to corporate citizenship.

In other business at the annual meeting, Mr. Downes announced the retirement of Joe B. Foster and Hazel S. Gluck from NJR’s Board of Directors. Mr. Foster, Non-Executive Chairman of Newfield Exploration Company had served as a director since 1994. Ms. Gluck, Senior Partner of MBI GluckShaw, had served as director since 1995.

“We are grateful for the wisdom and guidance shared by Mr. Foster and Ms. Gluck throughout their many years of service on our Board of Directors,” Mr. Downes said.

Mr. Downes was re-elected to a 3-year term on the Board of Directors, along with Lawrence R. Codey, retired Chief Operating Officer, Public Service Electric and Gas Company; Dr. R. Barbara Gitenstein, President, The College of New Jersey; Alfred C. Koeppe, retired President and Chief Operating Officer, Public Service Electric and Gas Company; and William H. Turner, Consultant, Summus Limited.

Shareowners also approved Deloitte & Touche LLP as auditors for fiscal 2004.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Other factors that could cause actual results to differ materially from our expectations include, but are not limited to, weather conditions, economic conditions in NJNG’s service territory, impact of regulation (including the regulation of rates), fluctuations in energy-related commodity prices, conversion activity, other marketing efforts, environmental matters and other uncertainties. More detailed information about these factors is set forth in NJR’s filings with the Securities and Exchange Commission, including NJR’s annual report on Form 10-K filed on December 15, 2003. NJR’s Form 10-K is available at www.sec.gov.

NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

About New Jersey Resources

New Jersey Resources (NYSE:NJR), a Fortune 1000 company and a member of the Forbes Platinum 400, provides retail and wholesale energy services to customers in New Jersey and in states from the Gulf Coast to New England, and Canada. Its principal subsidiary, New Jersey Natural Gas (NJNG), is one of the fastest-growing local distribuidiaries include NJR Energy Services and NJR Home Services. NJR Energy Services is an emerging leader in the unregulated energy services market, providing outstanding customer service and management of natural gas storage and capacity assets. NJR Home Services offers retail customers expert heating, air conditioning and appliance services. NJR’s progress is a tribute to the more than 5,000 dedicated employees who have shared their expertise and focus on quality through more than 50 years of serving customers and the community to make NJR a leader in the competitive energy marketplace. More information on NJR can be found on our Web site at njliving.com.