Besicorp Ltd. Files Racketeering Suit Charging Illegal Conspiracy to Take Control of Company.

KINGSTON, NY--(BUSINESS WIRE)--Sept. 30, 1999--

-- Suit alleges federal RICO violations, prima-facie tort, conspiracy,

tortuous interference, and business

disparagement by organized group of stock traders --

Besicorp Ltd., an alternative energy and cogeneration company based in upstate New York, filed suit in New York State Supreme Court. The suit is seeking to recover extensive damages which arose from alleged violations of federal racketeering statutes and other wrongful acts involving an illegal conspiracy to gain control of Besicorp Group Inc. ("BGI"), former parent of Besicorp Ltd.

The complaint alleges that beginning in the early 1990s, an organized group of stock traders began prosecution of a series of meritless lawsuits along with a campaign of malicious complaints directed to government agencies, intended to foment civil and criminal investigations. The complaint further alleges that the conspirators engaged in a campaign of vilification in the press, to the financial markets, and on the Internet and that certain named defendants have been involved as plaintiffs in dozens of class action and derivative shareholder lawsuits.

Besicorp CEO Michael F. Zinn, had the following comments:

"Over 10 years, as the target of a malicious conspiracy, BGI was subjected to wrongfully motivated litigation and vicious harassment." Mr. Zinn added, "By filing this suit the Company is seeking legal reparations on behalf of BGI's shareholders for unlawful acts by a group of predators who engaged in egregious behavior designed to undermine BGI's ability to stay in business. The Company's

long-term opportunity as a business specializing in development of environmentally sound energy generation has been substantially damaged as a result."

The 38-page complaint enumerates the improper activities that were taken by the conspirators in a pattern of corrupt activity and conspiracy leading to the defendants' unlawful attempts to liquidate BGI.

Heading up Besicorp's legal team is Terrance G. Reed, a nationally recognized legal expert in federal Racketeer and Influenced Corrupt Organizations (RICO) litigation and a co-author of a leading treatise on civil RICO litigation published by Matthew Bender. Reed, head of the Washington, D.C.-based law firm Reed & Hostage, P.C., has more than 17 years of experience as a RICO specialist and has written numerous articles on the subject. He has served as chair of the RICO Forfeiture and Civil Remedies Committee and is Advisory Board member to the RICO Law Reporter.

Commenting on the lawsuit, Mr. Reed said, "This case is about the limits the law places upon acceptable conduct in our business and legal systems. In this suit, Besicorp is attempting to vindicate its interest, but it is also seeking to reinforce the basic limits our legal system imposes upon what is fair or foul in corporate America."

Of counsel is A. Mitchell Greene, senior partner of Robinson, Brog, Leinwand, Greene, Genovese and Gluck P.C.

The Company is alleging seven counts against the above named defendants.

The counts include: 1. Tortious Interference with Prospective Economic Advantage 2. Tortious Interference with Contract 3. Business Disparagement 4. Prima Facie Tort 5. Conspiracy 6. Violation of 18 U.S.C.ss.ss.1962(b), 1962(d) 7. Violation of 18 U.S.C.ss.1962(c)

Besicorp Ltd. 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.