DOVER, DE and WEST PALM BEACH, FL, April 20, 2009 –- Chesapeake Utilities Corporation (NYSE: CPK) and Florida Public Utilities Company (NYSE AMEX: FPU) today announced that they have entered into a definitive merger agreement pursuant to which Florida Public Utilities will merge with a wholly owned subsidiary of Chesapeake. The merger was unanimously approved by both companies’ Boards of Directors on Friday, April 17, 2009. Under the merger agreement, holders of Florida Public Utilities common stock will receive 0.405 shares of Chesapeake common stock in exchange for each outstanding share of Florida Public Utilities. Based on the average of Chesapeake’s closing stock price the fifteen trading days prior to April 15, 2009, the transaction has an approximate value of $12.20 per Florida Public Utilities share. The merger is intended to qualify as a tax-free reorganization and is subject to various regulatory approvals as well as approval by the shareholders of both companies. The merger is expected to close during the fourth quarter of 2009. Management expects the transaction to be earnings neutral or slightly accretive in 2010 and meaningfully accretive in 2011.

The merger will create a combined energy company serving approximately 200,000 customers (117,000 natural gas, 48,000 propane and 31,000 electric customers) in the Mid-Atlantic and Florida markets with assets totaling $595 million. Chesapeake and Florida Public Utilities recognized $291.4 million and $168.5 million in revenues, respectively, and $13.6 million and $3.5 million in net income, respectively, for 2008.

At the close of the merger, Florida Public Utilities will be a wholly owned subsidiary of Chesapeake and initially will continue to operate as a separate business unit. Over time, subject to regulatory approval, Central Florida Gas, a division of Chesapeake, and Florida Public Utilities will integrate their operations. Consolidation of regulated natural gas services will require Florida Public Service Commission approval and may extend beyond two years. The combined Florida subsidiary will conduct business under the name of Florida Public Utilities.

At the end of 2008, Central Florida Gas served approximately 16,800 customers in 23 counties and Florida Public Utilities served approximately 95,700 customers in 19 counties, of which eight counties are served by both entities. As a result of the merger, the combined company will have an increased geographic footprint and serve 34 counties throughout Florida. The combination of Florida Public Utilities and Central Florida Gas will increase the number of regulated Florida utility customers served to more than 97,000 and unregulated Florida propane customers served to approximately 15,000 customers.

“We believe this merger is a great strategic fit for both companies, and we expect it to benefit the customers and shareholders of both companies. We share a fundamental business philosophy that promotes steady profitable growth, new investments to fuel that growth, and key acquisitions to strengthen our position,” stated John Schimkaitis, Chesapeake’s President and Chief Executive Officer. “We have the utmost respect for Florida Public Utilities and its track record under its Board as well as management’s leadership. We are excited about the opportunities the merger brings to continue the legacies that both Florida Public Utilities and Chesapeake have built over the past decade.”

“We are pleased to be joining forces with Chesapeake. Our companies share many key corporate values — a commitment to quality customer service, an appreci