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                                                           For more information:
                                                     Mike Campbell, 816-842-8181
FOR IMMEDIATE RELEASE                       investorrelations@inergyservices.com
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 Inergy Acquires Dowdle Gas, the 12th Largest Retail Propane Company in the U.S.
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                   Significantly Expands Geographic Footprint

         Kansas City, MO (October 4, 2005) - Inergy, L.P. (Nasdaq:NRGY)
announced today that it has acquired the assets of Dowdle Gas, Inc.,
headquartered in Columbus, MS. Dowdle Gas is the 12th largest propane retailer
in the U.S. and delivers in excess of 50 million gallons of retail propane to
approximately 120,000 customers in Alabama, Florida, Georgia, Mississippi, and
Tennessee. This transaction represents Inergy's 51st acquisition since its
founding in 1996. The assets purchased will be managed by Division President,
Tom Haiar, and will operate under the Dowdle Gas trade name. The acquisition is
expected to be immediately accretive to Inergy unitholders on a distributable
cash flow per unit basis.

         "I have personally known the management team at Inergy for years; and I
find comfort knowing that our employees, our customers, and the communities in
which we operate are in great hands with Inergy," said Nutie Dowdle, Chairman
and CEO of Dowdle Gas, Inc. and immediate-past Chairman of the National Propane
Gas Association. "Inergy's careful attention to the confidentiality of this
process and to the legacy of our family business gives me great confidence as we
transition our business."

         "Dowdle Gas is one of the premier independent retail propane companies
in the U.S. This transaction significantly expands Inergy's geographic footprint
and establishes the company in new markets, which is expected to lead to more
acquisition opportunities in the future," said John Sherman, President and CEO
of Inergy. "The business was built through the hard work of Nutie, his family,
and his employees; and we are very pleased to have been selected to transition
this outstanding business. We welcome the employees of Dowdle Gas to the Inergy
team and look forward to continued growth on behalf of our unitholders."

         With this announcement; the recent announcement of Inergy's acquisition
of Altas Gas Products, Inc.; and an acquisition which it expects to announce in
the near term, Inergy will complete the previously disclosed approximate $160
million of outstanding letters of intent to acquire additional propane assets.
Inergy expects to issue updated fiscal 2006 guidance in the near term.

         Inergy, L.P., with headquarters in Kansas City, Mo., is among the
fastest growing master limited partnerships in the country. The company's
operations include the retail marketing, sale and distribution of propane to
residential, commercial, industrial and




agricultural customers. Today, Inergy serves approximately 700,000 retail
customers from over 300 customer service centers throughout the eastern half of
the United States. The company also operates a natural gas storage business and
a supply logistics, transportation and wholesale marketing business that serves
independent dealers and multi-state marketers in the United States and Canada.

         Inergy Holdings, L.P. (Nasdaq:NRGP) owns the general partners of
Inergy, L.P., including an approximate 1.2% general partner interest, a 9.5%
limited partner interest, a special unit interest, and all of the incentive
distribution rights in Inergy, L.P.

         This news release contains forward-looking statements, which are
statements that are not historical in nature such as the expectation that the
acquisition will be immediately accretive on a distributable cash flow per unit
basis. Forward-looking statements are subject to certain risks, uncertainties
and assumptions. Should one or more of these risks or uncertainties materialize,
or any underlying assumption proves incorrect, actual results may vary
materially from those anticipated, estimated or projected. Among the key factors
that could cause actual results to differ materially from those referred to in
the forward-looking statements are: weather conditions that vary significantly
from historically normal conditions, the general level of petroleum product
demand and the availability of propane supplies, the price of propane to the
consumer compared to the price of alternative and competing fuels, our ability
to generate available cash for distribution to unitholders, and the costs and
effects of legal and administrative proceedings against us or which may be
brought against us. These and other risks and assumptions are described in
Inergy's annual report on Form 10-K and other reports that are available from
the United States Securities and Exchange Commission.

         Corporate news, unit prices and additional information about Inergy,
including reports from the United States Securities and Exchange Commission, are
available on the company's Web site, www.InergyPropane.com. For more
information, contact Mike Campbell in Inergy's Investor Relations Department at
816-842-8181 or via e-mail at investorrelations@inergyservices.com.

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