Connecticut Energy Shareholders Approve Merger Plans.

BRIDGEPORT, Conn.--(BUSINESS WIRE)--Sept. 14, 1999--

Connecticut Energy Corporation (NYSE: CNE) today announced that its shareholders approved the proposed merger under which Connecticut Energy will become a wholly owned subsidiary of Energy East Corporation (NYSE: NEG).

The two companies had announced on April 23, 1999, that they had signed a definitive agreement to merge. Under the agreement, Connecticut Energy shareholders will receive $42 per share, with 50 percent of the outstanding shares payable in Energy East stock and 50 percent payable in cash.

In addition to the approval of Connecticut Energy's shareholders, the merger is conditioned on approval by the Connecticut Department of Public Utility Control and the Securities and Exchange Commission. The companies anticipate that these approvals will be completed by the first quarter of 2000.

"We are pleased to see our shareholders in such strong support of the merger. I look with anticipation to the opportunities this merger presents for our employees, customers and shareholders," said J.R. Crespo, Chairman, President and CEO of Connecticut Energy. "We will bring a strong, dynamic company into the state and the region. Such size and stature are necessary for success in the new competitive energy environment."

Connecticut Energy Corporation is a holding company primarily engaged in the retail distribution of natural gas through The Southern Connecticut Gas Company, its principal subsidiary, which delivers natural gas in 22 Connecticut communities. Through its subsidiary, CNE Energy Services Group, Inc., the Company provides an array of energy products and services to commercial and industrial customers throughout New England. The Company also participates in a natural gas purchasing cooperative through another subsidiary, CNE Development Corporation; and a third unregulated subsidiary, CNE Venture-Tech, Inc., invests in ventures that offer technologically advanced energy-related products. Further information can be obtained from the company's website http://www.ConnEnergy.com .

Energy East Corporation is an energy delivery, products and services company doing business in New York, Massachusetts, Maine and New Hampshire. Its largest subsidiary, New York State Electric & Gas Corporation (NYSEG) supplies, markets and delivers electricity and natural gas to over one million customers across more than 40 percent of upstate New York.