Decision From Appellate Division Entered.

KINGSTON, N.Y.--(BUSINESS WIRE)--Feb. 12, 1999--BESICORP GROUP INC. (AMEX Emerging company Marketplace: BGI.EC) (the "Company") announced today the Appellate Division of the N.Y. Supreme Court reversed the April 10, 1998 order dismissing the shareholder derivative suit, John M. Bansbach vs. Besicorp Group Inc. et al. The lawsuit was previously dismissed due to a procedural deficiency.

The effect of the reversal of the dismissal is the reinstatement of the lawsuit which seeks to impose damages upon certain current and former Besicorp officers and directors arising out of the Company's defense of itself, certain current and former employees of Besicorp and its Chairman, President and Chief Executive Officer, Michael F. Zinn, against charges of campaign finance and tax law violations relating to the 1992 campaign of Congressman Maurice Hinchey.

Although the issue of independence of outside directors was argued on appeal, the Appellate Division made no finding that any director was interested or was controlled by a self-interested director. Besicorp is consulting with its legal counsel to determine whether it will appeal this decision.

Besicorp does not believe that the decision will have any affect on the proposed merger.

Besicorp specializes in the development of independent power projects and energy technologies.

Certain statements contained in this press release may be deemed forward-looking statements. Such statements, and other matters addressed in this press release, involve a number of risks and uncertainties. Among the factors that could cause actual plans to differ materially from these statements and other matters are the risks and other factors detailed, from time to time, in the Company's reports with the U.S. Securities and Exchange Commission.