NEWS RELEASE

February 7, 2008
Contact: John B. Williamson, III
Chairman of the Board, President and CEO

RGC RESOURCES, INC.
FIRST QUARTER FINANCIAL RESULTS

RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $1,566,008 or $0.72 per average share outstanding on continuing operations and earnings of $1,529,318 or $0.70 per average share outstanding on total operations for the quarter ended December 31, 2007. This compares to consolidated earnings of $1,511,653 or $0.70 per average share outstanding on continuing operations and earnings of $1,685,515 or $0.78 per average share outstanding on total operations for the quarter ended December 31, 2006. President, Chairman and CEO John Williamson attributed the improvement in earnings on continuing operations to improvement in gross margins.

Earnings per share for the twelve months ending December 31, 2007 were $1.76 on continuing operations and $1.68 for total operations compared to $1.53 on continuing operations and $1.76 on total operations for the twelve months ended December 31, 2006. Earnings on continuing operations for the twelve months ended December 31, 2007 were positively impacted by improved margins compared to the prior period.

RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company, Diversified Energy Company and RGC Ventures of Virginia, Inc.

From time to time, the Company may publish forward-looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements.

Summary financial statements for the first quarter and twelve months are as follows:

Summary financial statements for the first quarter and twelve months are as follows: First Quarter Financial Statement for quarter ending 12/31/07