NEWS RELEASE

August 11, 2008
Contact: John B. Williamson, III
Chairman of the Board, President and CEO

RGC RESOURCES, INC.
THIRD QUARTER FINANCIAL RESULTS

RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $351,378 or $0.16 per average shares outstanding on continuing and total operations for the quarter ended June 30, 2008. This compares to consolidated earnings of $236,520 or $0.11 per average shares outstanding on continuing operations and consolidated loss of ($223,066) or ($0.10) per average shares outstanding on total operations for the same quarter last year. John Williamson, Chairman, President and CEO, attributed the improvement in earnings on continuing operations to improved natural gas sales margins.

Earnings per share for the twelve months ending June 30, 2008 were $1.86 on continuing operations and $1.85 for total operations compared to $1.83 for continuing operations and $1.87 for total operations for the twelve months ended June 30, 2007.

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 quarter and twelve months are as follows: Third Quarter Financial Statement for quarter ending 06/30/08