CTG Resources, Inc. Subsidiaries Clarify Response to Offer From the Connecticut Resources Recovery Authority.

HARTFORD, Conn.--(BUSINESS WIRE)--Feb. 10, 1999--As previously announced, CTG Resources ("CTG) received on February 5, 1999 an unsolicited offer from the Connecticut Resource Recovery Authority ("CRRA") to purchase the district heating and cooling assets of CTG in connection with the Adriaen's Landing project.

Subsequent to this announcement it was mistakenly reported that CTG was negotiating with several prospective purchasers. The only negotiations underway are with CRRA.

CTG has stated on several occasions its interest in advancing the Adriaen's Landing and Patriot's stadium projects. Eleven acres of CTG property are on the site of these projects and include a corporate headquarters, an operations center and a steam and chilled water plant that serves downtown Hartford. The company has also stated that it is willing to move from this location and in doing so does not seek to make a profit, but that it does seek to be made whole in managing this move.

Today CTG indicated to CRRA its intent to explore fully its offer to purchase the district heating and cooling assets of CTG. The company has engaged advisors to assess the offer and to develop a transaction that is fair to CTG shareowners.

CTG Resources, Inc. is the holding company of Connecticut Natural Gas Corporation and The Energy Network. CTG is a distributor of natural gas in Connecticut and is engaged in a number of energy-related businesses under The Energy Network. The Company invites you to learn more about its organization and strategy by visiting its web site at http://www.ctgcorp.com. The Company's stock is traded on the New York Stock Exchange under CTG.