Connecticut Energy Receives Merger Approval From DPUC.

BRIDGEPORT, Conn.--(BUSINESS WIRE)--Dec. 17, 1999--

The Connecticut Department of Public Utility Control (DPUC) has approved the merger of Connecticut Energy Corporation (CNE-NYSE) and Energy East Corporation (NEG-NYSE).

In September, Connecticut Energy shareholders overwhelmingly voted in favor of the merger. In order to complete the transaction, the companies also need

Securities and Exchange Commission (SEC) approval. Energy East applied for this in August and expects to receive SEC approval in January. The transaction will be closed soon after.

The transaction is valued at $617 million, including the assumption of debt. At closing, Connecticut Energy shareholders will receive $42 per share, fifty percent payable in stock and fifty percent in cash. Shareholders are being mailed an election form and will be able to specify the percentage of the consideration they wish to receive in stock and in cash, subject to proration. They will have 30 days to return the forms to the exchange agent.

This transaction, which is expected to be completed in late January, is the first of Energy East's acquisitions. In addition to its current utility operations through New York State Electric and Gas (NYSEG), and other related nonutility operations, mergers are underway with CMP Group (CTP:NYSE), CTG Resources (CTG: NYSE) and Berkshire Energy Resources (BERK:Nasdaq). For the three other pending mergers, approvals are needed from the Connecticut, Maine and Massachusetts utility regulators. The SEC also needs to accept Energy East's application to become a registered holding company. The company has stated that it anticipates all transactions will be completed in the second quarter of 2000.

Through the Southern Connecticut Gas Company, Connecticut Energy distributes natural gas to approximately 158,000 customers in 22 Connecticut communities. Through its subsidiary, CNE Energy Services Group, Inc., the Company also provides an array of energy commodities and services to commercial and industrial customers throughout New England. CNE Development Corporation participates in a natural gas purchasing cooperative, and CNE Venture-Tech invests in ventures that offer technologically advanced energy-related products and operates a service bureau. Further information on the Company is available at www.ConnEnergy.com.

Energy East Corporation (NYSE: NEG) is a super-regional energy services and delivery company in the Northeast. Energy East is a leader in promoting competition and is committed to profitably growing its energy infrastructure. Upon completion of its mergers with Connecticut Energy Corporation, CMP Group, CTG Resources and Berkshire Energy Resources - and including its current energy delivery subsidiary, NYSEG - Energy East will serve approximately 2 million customers (1.4 million electricity and 600,000 natural gas) in upstate New York and New England. Energy East's home page on the Internet is www.engyeast.com.

This press release contains forward-looking statements about the companies. While the company believes such statements to be reasonable at the date of this press release and makes them in good faith, Connecticut Energy cautions that they may vary from actual results. Investors should be aware of important factors that could have a material impact on future results, such as the availability and terms of capital; competition for energy services; actions by federal and state regulatory authorities; legislative and judicial developments which affect the company or significant groups of its customers; and other uncertainties.