CH Energy Group Conducts Annual Meeting of Shareholders; Leadership Shares Highlights of 2004, Discusses Promise of 2005.

POUGHKEEPSIE, N.Y. -- Second graph, second sentence of release should read: xxx maintaining a solid A credit rating (sted maintaining a sold A credit rating).

The corrected release reads:

CH ENERGY GROUP CONDUCTS ANNUAL MEETING OF SHAREHOLDERS; LEADERSHIP SHARES HIGHLIGHTS OF 2004, DISCUSSES PROMISE OF 2005

Executives with CH Energy Group discussed the current and future operations of the 440,000-customer energy firm with shareholders at its 77th Annual Meeting today in Poughkeepsie.

Chairman of the Board, President and C.E.O. Steven V. Lant outlined what he considered to be the Company's key accomplishments for 2004. They included achieving earnings above the regulatory sharing threshold of utility subsidiary Central Hudson Gas & Electric Corp.; satisfactorily completing the testing of financial controls called for by Section 404 of the Sarbanes-Oxley Act; maintaining a solid A credit rating; improving customer service; increasing productivity; and posting improved returns for fuel oil subsidiaries despite rising oil prices.

Lant also reported that the Company made solid progress during the last year on exploring opportunities to invest the re-deployable capital received from the sale of its generating plants as part of deregulation. "We reconfigured our new business team, relying more on our internal resources to originate and analyze opportunities and less on outside consultants and investment bankers. As we build contacts, the number of prospective investments we are able to consider is increasing."

Lant pointed to CH Energy Group's $11 million investment in the ethanol production facility being constructed in Lexington, Nebraska, by Cornhusker Energy. Shareholders watched a short videotape on the plant, which is expected to be operational by the fall and to provide a modest return to shareholders during 2005.

Lant also told shareholders that identifying additional investments that meet the Company's risk and reward requirements is top priority for 2005. He said some of the areas being considered are "regulated electric and natural gas utility assets, fuel delivery companies, fossil-fueled electric generating plants with contracts for their output, renewable electricity production facilities (such as hydro, wind and biomass), electric and natural gas transmission and storage assets, ethanol plants and regulated water companies."

Central Hudson Senior Vice President of Customer Services Charles A. Freni also welcomed and addressed the shareholders, discussing growth within the utility's service territory and the opportunity it provides to increase the Company's earnings. Freni explained that global trade and home construction, especially in the southern half of Central Hudson's service territory, are increasing the number of customers and the amount of energy deliveries. Utility infrastructure improvements and capacity additions required to meet that demand will expand the Company's asset base by a projected 4-5 percent per year, which will provide an opportunity to increase earnings for shareholders over time.

Lant discussed with shareholders that Central Hudson is considering the possibility of applying for an increase in the delivery rates it charges its electric and natural gas customers to deliver energy to their homes and businesses. He noted that the utility has not raised its rates since 1993, during a period of time when the Consumer Price Index has climbed more than 30 percent. "This is a step that we will take only after careful analysis, and one that we'll approach with great sensitivity to our customers," he added.

The complete text of the delivered remarks can be found at www.CHEnergyGroup.com. During the meeting, shareholders re-elected three members to the Board of Directors, Margarita K. Dilley, Steven M. Fetter and Stanley J. Grubel, for terms that will expire in 2008. They also approved the appointment of PricewaterhouseCoopers LLP as CH Energy Group's independent auditor for 2005.

About CH Energy Group

With more than 440,000 customers, CH Energy Group, Inc. is a family of companies seizing new opportunities in the energy marketplace through two primary subsidiaries: Central Hudson Gas & Electric Corporation is a regulated transmission and distribution utility serving approximately 358,000 customers in eight counties of New York State's Mid-Hudson River Valley, and delivering natural gas and electricity in a 2,600-square-mile service territory that extends from the suburbs of metropolitan New York City north to the Capital District at Albany. Central Hudson Enterprises Corporation includes business units delivering energy and related services to nearly 85,000 customers in eight states and the District of Columbia. Its regional footprint stretches from Connecticut to the Washington, D.C. area, as well as an interest in a Lexington, Neb., ethanol plant.

Forward-Looking Statements 

Statements included in this news release, including its Appendix and the documents incorporated by reference which are not historical in nature, are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by words including "anticipates," "believes," "projects," "intends," "estimates," "expects," "plans," "assumes," "seeks," and similar expressions. Forward-looking statements including, without limitation, those relating to CH Energy Group, Inc. and its subsidiaries' future business prospects, revenues, proceeds, working capital, liquidity, income and margins, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, due to several important factors including those identified from time to time in the forward-looking statements. Those factors include, but are not limited to: weather; energy supply and demand; fuel prices; interest rates; potential future acquisitions; developments in the legislative, regulatory and competitive environment; market risks; electric and gas industry restructuring and cost recovery; the ability to obtain adequate and timely rate relief; changes in fuel supply or costs; the success of strategies to satisfy electricity requirements now that Central Hudson's major electric generation assets have been sold; future market prices for energy, capacity, and ancillary services; the outcome of pending litigation and certain environmental matters, particularly the status of inactive hazardous waste disposal sites and waste site remediation requirements; and certain presently unknown or unforeseen factors, including, but not limited to, acts of terrorism. CH Energy Group, Inc. and its subsidiaries undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Given these uncertainties, undue reliance should not be placed on the forward-looking statements.