Dear Shareholder and Plan Participant:

Your Company continually reviews the provisions of the Dividend Reinvestment and Stock Purchase Plan and the benefits it provides to South Jersey Industries. Because the Company does not have a need for additional equity capital at this time, we have determined that the Plan will purchase shares on the open market to satisfy Plan requirements. This is a change from the Plan’s recent practice of purchasing newly issued shares. A consequence of open market purchases, per the plan documents, is the elimination of the 2% discount from the applicable market price for shares acquired through the Plan. This change will apply to the Plan’s next purchase of the Company’s common stock, which is expected to be April 30, 2008, and will continue until notice is provided otherwise.

We believe that the Plan will continue to be a convenient and economical way for shareholders to increase their investment in the Company, since there will be no brokerage fees charged to Plan Participants for stock purchases and the Company will continue to bear the administrative costs of the Plan. We are informing you of the anticipated changes to the Plan so that, if you wish, you can take the necessary actions to terminate your participation in the Plan before the changes are implemented.

No action by you is necessary if you wish to continue your participation in the Plan on your current basis.

Sincerely,

Edward J. Graham

   To enroll in SJI's Dividend Reinvestment Plan, you must hold at least one share of SJI's common stock directly in your name. If you aren't a shareholder of record, you may begin participating in the plan by making a minimum initial stock purchase of $100 directly from SJI. No brokerage commissions are charged on the purchase of shares through SJI's plan.

    We encourage all investors to read the prospectus before making any investment decision. To view the prospectus about SJI's Dividend Reinvestment Plan, click here. To receive a hard copy of the prospectus, call SJI toll-free at 1-888-754-3100 weekdays between 8 a.m. and 4:30 p.m. Eastern Time. You may also request a prospectus by completing the entire online form below and then clicking the submit button.

For an enrollment form, click here. Print a copy, fill it out, sign and return it to SJI by mail. (NOTE: To view the prospectus and access the enrollment form, you must have Adobe Acrobat Reader installed on your PC. Acrobat Reader is available free from ADOBE.)

Thank you for your interest in SJI's Dividend Reinvestment Plan.

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The information here is given for information only and not given in connection with any sale, offer, or solicitation of an offer to buy any securities.