SCANA Subsidiary Announces Sale of Knology Investment
John Winn
(803) 217-9240
jwinn@scana.com

Bryan Hatchell
(803) 217-7458
bhatchell@scana.com


Wilmington, Delaware, December 30, 2004 - SCANA Communications Holdings, Inc., a wholly-owned, indirect subsidiary of SCANA Corporation (NYSE: SCG), announced today that the company sold its investment in Knology, Inc. (NASDAQ: KNOL), consisting of approximately 4.7 million shares of common stock and approximately $51 million of 12% senior unsecured notes. Knology, headquartered in West Point, Georgia, is a leading provider of interactive communications and entertainment services in the Southeast. In addition to approximately $59 million in cash proceeds from the sale of the shares and notes, the transaction will also produce approximately $30 million in additional cash related to certain income tax carry-back benefits. This transaction will result in the recording of an after-tax loss of approximately $9 million, or 8 cents per share, in the fourth quarter of 2004.

"The successful completion of this transaction, which follows the sale of our ITC^DeltaCom investment earlier this month, substantially completes our announced strategy to monetize our remaining telecommunications investments," said Kevin Marsh, SCANA's senior vice president and chief financial officer. "Combined after-tax cash proceeds of approximately $122 million from the sale of these investments will be used to repay outstanding debt, reducing the overall leverage in SCANA's capital structure."


PROFILE

SCANA Communications Holdings, Inc., a Delaware-based corporation, is an indirect, wholly-owned subsidiary of SCANA Corporation.

SCANA Corporation, a Fortune 500 company headquartered in Columbia, South Carolina, is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations, telecommunications and other energy-related businesses. The Company serves approximately 581,000 electric customers in South Carolina and more than one million natural gas customers in South Carolina, North Carolina and Georgia. Information about SCANA and its businesses is available on the Company's website at www.scana.com.


SAFE HARBOR STATEMENT

Statements included in this press release which are not statements of historical fact are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those indicated by such forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, the following: (1) that the information is of a preliminary nature and may be subject to further and/or continuing review and adjustment, (2) regulatory actions or changes in the utility and nonutility regulatory environment, (3) current and future litigation, (4) changes in the economy, especially in areas served by the Company's subsidiaries, (5) the impact of competition from other energy suppliers, including competition from alternate fuels in industrial interruptible markets, (6) growth opportunities for the Company's regulated and diversified subsidiaries, (7) the results of financing efforts, (8) changes in the Company's accounting policies, (9) weather conditions, especially in areas served by the Company's subsidiaries, (10) performance of and marketability of the Company's investments in telecommunications companies, (11) performance of the Company's pension plan assets, (12) inflation, (13) changes in environmental regulations, (14) volatility in commodity natural gas markets and (15) the other risks and uncertainties described from time to time in the Company's periodic reports filed with the United States Securities and Exchange Commission. The Company disclaims any obligation to update any forward-looking statements.