Chitwood & Harley LLP Files Class Action Complaint Charging Star Gas, L.P., Star Gas, L.L.C., Irik Sevin and Ami Trauber With Securities Fraud.

ATLANTA -- Chitwood & Harley LLP Files Class Action Complaint Charging Star Gas, L.P., Star Gas, L.L.C., Irik Sevin and Ami Trauber With Securities Fraud dated July 29, 2004 should read Chitwood & Harley LLP Files Class Action Complaint Charging Star Gas, L.P., Star Gas, L.L.C., Irik Sevin and Ami Trauber With Securities Fraud From July 25, 2000 Through October 18, 2004 (sted Chitwood & Harley LLP Files Class Action Complaint Charging Star Gas, L.P., Star Gas, L.L.C., Irik Sevin and Ami Trauber With Securities Fraud).

The corrected release reads:

CHITWOOD & HARLEY LLP FILES CLASS ACTION COMPLAINT CHARGING STAR GAS, L.P., STAR GAS, L.L.C., IRIK SEVIN AND AMI TRAUBER WITH SECURITIES FRAUD FROM JULY 25, 2000 THROUGH OCTOBER 18, 2004

Chitwood & Harley LLP announces that it has filed a securities fraud class action complaint in the United States District Court for Connecticut, against Star Gas, L.P., ("Star Gas" or the "Company") (NYSE: SGU; SGH), Irik P. Sevin, Ami Trauber, and the General Partner of the Company, Star Gas, L.L.C., on behalf of purchasers of Star Gas securities, during the period between July 25, 2000 and October 18, 2004 (the "Class Period"). A copy of the complaint is available from the court and will be posted on our website, www.classlaw.com for the next two months. The civil action number is 04CV1832(MRK).

If you have questions about this case or wish to inquire about your rights in connection with this matter, you may contact us through our website, www.classlaw.com, by clicking on Star Gas, or by emailing or calling Josh M. Wilson at [e-mail] r 1-888-873-3999 ext. 4861, or Lauren S. Antonino, Esq. at [e-mail]. Any member of the class who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than December 20, 2004 on their own or through counsel of their own choice. Class members must meet certain legal requirements to serve as a lead plaintiff. Please feel free to contact Josh M. Wilson, Esq. or Lauren Antonino, Esq., at Chitwood & Harley, who will, without obligation or cost, attempt to answer questions concerning your rights with respect to this matter. You may also choose to do nothing and remain an absent class member.

The complaint alleges that defendants' publicly disseminated Class Period statements, which portrayed the Company's business as robust, even in the face of rising heating oil prices and a significant restructuring, were materially false and misleading for the following reasons: (a) Star Gas was experiencing serious problems as a result of its reorganization, particularly in the area of customer service, which was deteriorating rapidly, resulting in a migration of customers; (b) the purported cost savings from the restructuring in the heating oil division had not materialized and, in fact, had resulted in operating deficiencies that negatively impacted the Company; (c) the Company had not adequately hedged against a sharp rise in heating oil prices during the Class Period; (d) the Company was ill-equipped to handle the surge in heating oil prices during the Class Period and falsely comforted investors with representations that Star Gas would simply pass on high wholesale prices to retail customers; (e) the Company's problems and deteriorating business seriously threatened its ability to pay out its quarterly distribution, a major reason investors purchase the Company's units; and (f) the Company's business had deteriorated so sharply over the Class Period that it was in palpable danger of breaching financial and/or performance covenants in its loan agreements, thereby seriously jeopardizing its liquidity and viability. Defendants engaged in the wrongdoing alleged in the complaint so that the Company's units would trade at artificially inflated prices, paving the way for several securities offerings during the Class Period, totaling $96 million.

The truth was revealed on October 18, 2004, before the open of ordinary trading, when Star Gas shocked the market by announcing that the Company's Petro division had suffered a substantial earnings decline in fiscal 2004, which was expected to continue into fiscal 2005, due to an inability to pass on increased oil prices to its customers and to problems with its restructuring, forcing the Company to cut its Minimum Quarterly Distribution. Moreover, the earnings shortfall breached covenants in the Company's credit agreements, jeopardizing its liquidity and raising the possibility of bankruptcy, according to the Company's press release. In response to this announcement, the price of Star Gas common units dropped precipitously, falling 80% in one day, from a closing price of $21.60 per unit on October 15, 2004, to a closing price of $4.32 per share on October 18, 2004 (the next trading day), on trading volume that was many times its average daily trading volume.

Chitwood & Harley LLP is a class action firm that concentrates its nationwide practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in one of the highest recoveries ever in a private securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."