Besicorp Announces Closing of Three Power Plants.

KINGSTON, N.Y.--(BUSINESS WIRE)--Dec. 7, 1998--BESICORP GROUP INC. (AMEX Emerging Company Marketplace - BGI.EC) (the "Company") announced today that it had consummated the sale of two power plants pursuant to asset put option agreements. The Company owns partnership interests in the Kamine/Besicorp Carthage L.P. and the Kamine/Besicorp Natural Dam L.P., which had leased the two power plants. Both partnerships were parties to the Master Restructuring Agreement ("MRA") with Niagara Mohawk Power Corp. which was consummated on June 30, 1998. Pursuant to the MRA, the power purchase agreements for the plants were terminated. Besicorp holds partnerships interests of 50 per cent in each of the projects. The Company's share of the proceeds to be received from these sales will be approximately $3 million.

The Company also announced that it had consummated the previously announced sale of the power plant formerly leased by the Kamine/Besicorp South Glens Falls L.P.

Certain statements contained in this press release may be deemed forward-looking statements. Such statements, and other matters addressed in this press release, involve a number of risks and uncertainties. Among the factors that could cause actual plans to differ materially from these statements and other matters are the risks and other factors detailed, from time to time, in the Company's reports with the U.S. Securities and Exchange Commission.