Besicorp Announces Sale of Power Plant.

KINGSTON, N.Y.--(BUSINESS WIRE)--Dec. 2, 1998--BESICORP GROUP INC. (AMEX Emerging Company Marketplace - BGI.EC) (the "Company") announced today that it had entered into a contract to sell a power plant in which the Company owns a partnership interest. The Kamine/Besicorp Syracuse L.P., which owns the power plant, was a party to the Master Restructuring Agreement ("MRA") with Niagara Mohawk Power Corp. which was consummated on June 30, 1998, pursuant to which the power purchase agreement for the plant was terminated. Besicorp holds a partnership interest of 35.715 per cent in the project.

The Company's share of the proceeds to be received from this sale is estimated to be approximately $2 million. The sale is scheduled to close in December 1998. The project partnership and the purchaser of the power plant have entered into a binding agreement subject to the satisfaction or waiver of certain conditions, but there can be no assurance that such transaction will be consummated.

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.