August 9, 2005

Media Contact: Cynthia Messina, Las Vegas, NV (702) 876-7132

Shareholder Contact: Ken Kenny, Las Vegas, NV (702) 876-7237

SWX-NYSE

For Immediate Release

	SOUTHWEST GAS CORPORATION
REPORTS SECOND QUARTER RESULTS

Las Vegas - Southwest Gas Corporation recorded a net loss of $0.07 per share for the second quarter of 2005, a $0.17 improvement from the $0.24 per share loss reported for the second quarter of 2004. Net loss for the second quarter of 2005 was $2.8 million compared to the 2004 second quarter net loss of $8.4 million. Due to the seasonal nature of the business, net losses during the second and third quarters are normal and not generally indicative of earnings for a complete twelve-month period.

According to Jeffrey W. Shaw, Chief Executive Officer, “The improvement in operating results is primarily due to increased operating margin in Nevada and California. Operating margin benefited from more normal weather this quarter; coupled with the positive impacts of customer growth, rate relief, and rate design changes in Nevada and California. However, Arizona returns continue to lag, and need to improve in order for the overall financial health of the Company to improve. We currently have a general rate case on file in Arizona, our largest operating area, that addresses rate relief and rate design issues and we are hopeful of a favorable decision with new rates in place by early 2006.”

-more-

For the twelve months ended June 30, 2005, consolidated net income was $54.1 million, or $1.48 per basic share, compared to $49.7 million, or $1.45 per basic share, during the twelve-month period ended June 30, 2004.

Natural Gas Operations Segment Results

Second Quarter

Operating margin, defined as operating revenues less the cost of gas sold, increased approximately $15 million, or 13 percent, in the second quarter of 2005 compared to the second quarter of 2004. During the last twelve months, the Company added 84,000 customers (excluding 19,000 customers associated with the acquisition of the South Lake Tahoe service territory of Avista Corporation), an increase of five percent. This customer growth contributed an incremental $5 million in operating margin during the quarter. Incremental rate relief in Nevada and California added $4 million in margin compared to the prior-year. Differences in heating demand caused by weather variations between quarters resulted in a $6 million increase in margin.

Operating expenses for the quarter increased $6.7 million, or six percent, compared to the second quarter of 2004 primarily due to general cost increases and incremental operating costs associated with serving additional customers. Net financing costs increased $1.4 million, or seven percent, between periods primarily due to an increase in average debt outstanding to help finance growth and higher rates on variable-rate debt.

-more-

Twelve Months to Date

Operating margin increased $40 million, or seven percent, between periods. Continuing customer growth contributed an incremental $21 million. Rate relief in California and Nevada added $15 million. Differences in heating demand caused by weather variations between periods and lower usage due to conservation and energy efficiencies resulted in a net $4 million margin increase. Warmer-than-normal temperatures were experienced during both periods. The unfavorable impacts of these factors were approximately $10 million in the current twelve-month period and $14 million in the prior period.

Operating expenses increased $31.9 million, or seven percent, between periods reflecting general increases in labor and maintenance costs, and incremental operating costs associated with serving additional customers. Additional factors included increases in insurance premiums, employee-related expenses, and compliance costs.

Net financing costs rose $6.1 million, or seven percent, between periods primarily due to an increase in average debt outstanding to help finance growth and higher variable-rate interest costs.

Southwest Gas Corporation provides natural gas service to approximately 1,663,000 customers in Arizona, Nevada and California. Its service territory is centered in the fastest-growing region of the country.

-more-

This press release may contain statements which constitute "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995 (Reform Act). All such forward-looking statements are intended to be subject to the safe harbor protection provided by the Reform Act. A number of important factors affecting the business and financial results of the Company could cause actual results to differ materially from those stated in the forward-looking statements. These factors include, but are not limited to, the impact of weather variations on customer usage, customer growth rates, changes in natural gas prices, the ability to recover costs through the PGA mechanism, the effects of regulation/deregulation, the timing and amount of rate relief, changes in rate design, changes in gas procurement practices, changes in capital requirements and funding, the impact of conditions in the capital markets on financing costs, changes in construction expenditures and financing, changes in operations and maintenance expenses, future liability claims, changes in pipeline capacity for the transportation of gas and related costs, acquisitions and management’s plans related thereto, competition, and the ability to raise capital in external financings. In addition, the Company can provide no assurance that its discussions regarding certain trends relating to its financing, operations, and maintenance expenses will continue in future periods.

-more-

SOUTHWEST GAS CONSOLIDATED EARNINGS DIGEST

(In thousands, except per share amounts)

QUARTER ENDED JUNE 30,	2005		2004

Consolidated Operating Revenues	$	361,130	$	278,697

Net Loss	$	2,817	$	8,362

Average Number of Common Shares Outstanding		37,701		34,741

Loss Per Share	$	0.07	$	0.24

SIX MONTHS ENDED JUNE 30,	2005		2004

Consolidated Operating Revenues	$	904,010	$	752,097

Net Income	$	30,012	$	32,682

Average Number of Common Shares Outstanding		37,400		34,576

Basic Earnings Per Share	$	0.80	$	0.95

Diluted Earnings Per Share	$	0.80	$	0.94

TWELVE MONTHS ENDED JUNE 30,	2005		2004

Consolidated Operating Revenues	$	1,628,973	$	1,323,964

Net Income	$	54,105	$	49,749

Average Number of Common Shares Outstanding		36,606		34,269

Basic Earnings Per Share	$	1.48	$	1.45

Diluted Earnings Per Share	$	1.47	$	1.44

-end-

SOUTHWEST GAS CORPORATION
SUMMARY UNAUDITED OPERATING RESULTS
(In thousands, except per share amounts)

	THREE MONTHS ENDED JUNE 30,						SIX MONTHS ENDED JUNE 30,				TWELVE MONTHS ENDED JUNE 30,
	2005			2004			2005		2004		2005		2004
Results of Consolidated Operations
Contribution to net income (loss) - gas operations	$	(5,362	)	$	(10,610	)	$	27,024	$	29,946	$	45,432	$	44,576
Contribution to net income - construction services		2,545			2,248			2,988		2,736		8,673		5,173

Net income (loss)	$	(2,817	)	$	(8,362	)	$	30,012	$	32,682	$	54,105	$	49,749

Earnings (loss) per share - gas operations	$	(0.14	)	$	(0.30	)	$	0.72	$	0.87	$	1.24	$	1.30
Earnings per share - construction services		0.07			0.06			0.08		0.08		0.24		0.15

Basic earnings (loss) per share	$	(0.07	)	$	(0.24	)	$	0.80	$	0.95	$	1.48	$	1.45

Diluted earnings (loss) per share	$	(0.07	)	$	(0.24	)	$	0.80	$	0.94	$	1.47	$	1.44

Average outstanding common shares		37,701			34,741			37,400		34,576		36,606		34,269
Average shares outstanding (assuming dilution)		--			--			37,701		34,825		36,916		34,556

Results of Natural Gas Operations
Gas operating revenues	$	298,048		$	226,756		$	793,031	$	660,540	$	1,394,543	$	1,129,528
Net cost of gas sold		167,025			111,114			470,952		347,712		769,006		543,705

Operating margin		131,023			115,642			322,079		312,828		625,537		585,823
Operations and maintenance expense		74,957			70,687			149,233		140,668		299,365		277,040
Depreciation and amortization		34,210			32,266			68,457		64,552		134,420		126,488
Taxes other than income taxes		10,075			9,589			20,389		19,498		38,560		36,953

Operating income		11,781			3,100			84,000		88,110		153,192		145,342
Other income		1,000			81			2,086		61		3,636		2,165
Net interest deductions		20,039			18,681			39,921		37,308		80,750		74,347
Net interest deductions on subordinated debentures		1,930			1,931			3,861		3,861		7,724		6,541
Preferred securities distributions		--			--			--		--		--		1,442

Income (loss) before income taxes		(9,188	)		(17,431	)		42,304		47,002		68,354		65,177
Income tax expense (benefit)		(3,826	)		(6,821	)		15,280		17,056		22,922		20,601

Contribution to net income (loss) - gas operations	$	(5,362	)	$	(10,610	)	$	27,024	$	29,946	$	45,432	$	44,576

SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
JUNE 30, 2005


FINANCIAL STATISTICS
Market value to book value per share at quarter end	129	%
Twelve months to date return on equity -- total company	7.7	%
-- gas segment	6.8	%
Common stock dividend yield at quarter end	3.2	%

GAS OPERATIONS SEGMENT

Rate Jurisdiction	Authorized Rate Base (In thousands)

Arizona	$	688,202	9.20	%	11.00	%
Southern Nevada		574,285	7.45		10.50
Northern Nevada		110,309	8.56		10.50
Southern California		102,703	8.74		10.38
Northern California		45,487	8.74		10.38
Paiute Pipeline Company (1)		75,059	9.69		11.60

(1) Estimated amounts based on rate case settlements.

SYSTEM THROUGHPUT BY CUSTOMER CLASS	SIX MONTHS ENDED JUNE 30,		TWELVE MONTHS ENDED JUNE 30,
(In dekatherms)	2005	2004	2005	2004

Residential	42,458,007	42,136,041	67,039,311	63,272,008
Small commercial	17,507,959	17,476,506	30,415,892	29,054,514
Large commercial	6,050,238	5,283,862	11,256,312	10,025,581
Industrial / Other	7,180,025	6,864,991	16,700,590	15,179,647
Transportation	60,950,204	56,217,610	130,559,087	127,951,988

Total system throughput	134,146,433	127,979,010	255,971,192	245,483,738

HEATING DEGREE DAY COMPARISON

Actual	1,255	1,316	1,900	1,877
Ten-year average	1,355	1,355	1,923	1,929

Heating degree days for prior periods have been recalculated using the current period customer mix.

SOUTHWEST GAS CORPORATION SUMMARY UNAUDITED OPERATING RESULTS (In thousands, except per share amounts)

SOUTHWEST GAS CORPORATION SELECTED STATISTICAL DATA JUNE 30, 2005

SOUTHWEST GAS CORPORATION
SUMMARY UNAUDITED OPERATING RESULTS
(In thousands, except per share amounts)

SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
JUNE 30, 2005