CTG Resources and Koch Gas Services to continue in KBC Energy Services partnership.

HARTFORD, Conn.--(BUSINESS WIRE)--June 11, 1997--CTG Resources Inc. (NYSE:CTG) and Koch Gas Services Company have announced that they have acquired the partnership interest of Bay State Gas Company's affiliate, Bay State Energy Enterprises in KBC Energy Services (KBC). The terms of the transaction were not disclosed.

Since the summer of 1995, KBC Energy Services has been engaged in marketing natural gas supplies and energy related services on an unregulated basis to residential, commercial and industrial end-users, primarily in New England, New Jersey and Long Island.

CTG Resources and Koch Gas Services said, "KBC Energy Services has witnessed impressive progress in the past 2 years. While there are numerous companies engaged in marketing energy at the retail level, few have achieved KBC's growth in such a brief period. As a result of this change in the partnership, CTG and Koch reevaluated their commitment to KBC and are convinced the company can succeed in the deregulated environment in which it competes. We also look forward to the entry into the electric markets, as well as continuing to serve gas customers. Our goal is to fulfill customers' needs with any energy source they require, including gas, electric, oil and propane. Customers of KBC will see no change in the company or their services provided and the name of the company will be unchanged."

The companies also indicated that they are also engaged in a search for a new president who will be charged with building on KBC's past successful record.

CTG Resources Inc. is the holding company of Connecticut Natural Gas Corp. and its unregulated subsidiary, The Energy Network. CTG is the largest distributor of natural gas in Connecticut and is engaged in a number of energy related businesses under The Energy Network. CTG's home page on the Internet is www.ctgcorp.com .

Koch Gas Services Company is a subsidiary of Koch Industries Inc., the second-largest privately held company in the United States. The company has 13,000 employees worldwide and is involved in virtually all phases of the oil and gas industry, as well as in agriculture, chemicals, chemical technology products, hard minerals, real estate and financial investments. For more information on Koch Industries, refer to Koch's home page at www.kochind.com on the Internet.

CONTACT: Connecticut Natural Gas

Mary Hart, [phone]

or

Koch Industries Inc.

Jay Rosser, [phone]