Besicorp Announces Second Quarter Fiscal 1999 Results and Status of Potential Corporate Restructing.

KINGSTON, N.Y.--(BUSINESS WIRE)--Nov. 5, 1998--BESICORP GROUP INC. (AMEX Emerging Company Marketplace - BGI.EC), announced today results for the three- and six-month periods ended September 30, 1998 and the status of its potential corporate restructuring. The financial results, shown with the comparable periods from the prior fiscal year, are summarized as follows: -0-

                                    Three Months Ended   September 30,
                                            1998             1997

Revenues(1)                           $137,086,353(1)   $  3,436,774
Net Income(1)                         $ 85,897,048(1)   $    305,111
Basic Earnings per Common Share       $      28.94      $        .10
Basic Weighted Average Number of
 Shares (in Thousands)                       2,969             2,947
Diluted Earnings per Common Share     $      28.25      $        .10
Diluted Weighted Average Number of
 Shares (in Thousands)                       3,040             3,021


                                      Six Months Ended   September 30,
                                            1998             1997

Revenues(1)                           $143,892,242(1)   $  8,396,571
Net Income(1)                         $ 88,457,514(1)   $  1,332,812
Basic Earnings per Common Share       $      29.81      $        .45
Basic Weighted Average Number of
 Shares (in Thousands)                       2,967             2,941
Diluted Earnings per Common Share     $      29.12      $        .44
Diluted Weighted Average Number of
 Shares (in Thousands)                       3,038             3,013

(1)  Resulting predominantly from non-recurring items. See details
     below.

According to Michael J. Daley, Executive Vice President and Chief Financial Officer, "The increase in net income for the quarter ended September 30, 1998 is attributable to the Company's Project Segment which recorded income from partnerships of $133,161,691 during the quarter compared to $2,242,994 for the three months ended September 30, 1997. The income from partnerships for the three- and six-months ended September 30, 1998, which is predominantly non-recurring, is primarily attributable to the impact to the Company of the master restructuring agreement ("MRA") between Niagara Mohawk Power Corporation and 14 independent power producers holding 27 power purchase agreements, including the Company's five power purchase agreements, which was consummated on June 30, 1998 and, to a minimal extent, the operations of the partnerships. The partnerships will generate no significant future income or losses due to the MRA and the resulting termination of the power purchase agreements.

"The income from partnerships has been adjusted to reflect the impaired value of the five power plants and gives effect to the Company's share, based upon the current appraised values, of the estimated sales proceeds or credits to be received by the Company upon the sale of the five power plants. As such, it is not expected that recorded income will be materially impacted at the time of the consummation of the plant sales. The Company holds ownership interests in two power plants and leasehold interests in three power plants. The Company is continuing to explore potential transactions with several parties in order to effect the sale of the power plants by the end of calendar 1998 and, assuming that such sales have been consummated, the Company does not expect that there will be a significant adjustment to the recorded income. If the sale of the power plants is not consummated by December 31, 1998, the Company expects that there will be a significant downward adjustment to the recorded income for the current fiscal year.

"As previously disclosed, the Company has been exploring various corporate restructuring alternatives. The Company is currently involved in negotiations and the due diligence process with one party pursuant to which the Company may be acquired in a cash merger. No assurance can be given that any agreement with respect to such transaction will be entered into or, if entered into, will be consummated.

"The Company continues to invest in solar electric product development and realized a loss of $465,019 in the second quarter from technology-related activities reflecting such investment. Almost all costs associated with these development activities, as well as a significant portion of the costs of project development activities, are expensed on a current basis."

Besicorp specializes in the development of independent power projects and energy technologies.

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.