Destec Reports Net Income for Third Quarter 1995.

(NYSE: ENG), a leading independent power producer based in Houston, Texas, today reported net income of $14,684,000 for the quarter ended Sept. 30, 1995, compared with net income of $31,734,000 for the same period in 1994.

Revenues for the third quarter 1995 were $100,545,000, compared with $162,232,000 for the third quarter 1994. Third quarter earnings per share for 1995 and 1994, respectively, were 25 cents, based on 58,750,000 weighted average shares outstanding, and 53 cents, based on 60,197,000 weighted average shares outstanding. The primary difference in shares outstanding is a result of Destec's stock repurchase program.

Commenting on the quarter, Charles F. Goff, president and chief executive officer, said, "Destec's quarterly results continue to be impacted by the expirations of our Texas power sales agreements. This negative impact was partially offset by short-term sales of power and refinancing of CoGen Lyondell, Destec's largest Texas power facility. Results during the third quarter 1995 were positively affected by increased earnings from our power generation facility partnerships.

"The third quarter was another active period for Destec," Goff continued. "We signed long-term power sales agreements with the Lower Colorado River Authority, a large Texas power system, and the Oakland, California Airport. We announced two international power project developments during the third quarter - the Chiahui project in Taiwan and the Indian Queens project in the United Kingdom - and made construction progress with our cogeneration project in The Netherlands. We also closed the financing of our Kingston cogeneration project in Ontario, Canada, began pre-start-up activities at the Wabash River coal gasification project in Indiana, and sold a group of nonconventional gas reserves," he said.

Destec is a major independent power company that owns power generation and coal gasification facilities which produce, sell and market electricity, steam and synthetic fuel gas. Destec has interests in 19 operating projects with a total rated equipment capacity of 2,708 megawatts of electricity and over three million pounds per hour of steam. Destec currently has seven projects, representing over 1,700 megawatts of equivalent capacity, in construction or advanced development. -0-

                DESTEC ENERGY, INC. AND SUBSIDIARIES
             SUMMARY OF STATEMENTS OF CONSOLIDATED INCOME
          (In Thousands of Dollars, except per share amounts)
                             (Unaudited)

                            For the Three Months     For the Nine Months
                                   Ended                   Ended
                                 Sept. 30,               Sept. 30,
                            --------------------    --------------------
                              1995        1994        1995        1994
                            --------    --------    --------    --------
 Revenues:
   Power, steam and syngas  $ 37,035    $ 82,675    $132,178    $241,798
   Engineering and
    operations                60,798      73,628     321,039     244,112
   Energy resources            2,707       4,313      11,785      16,447
   Development                     5       1,616       8,062      17,947
                            --------    --------    --------    --------
      Total Revenues         100,545     162,232     473,064     520,304
                            --------    --------    --------    --------
 Operating Costs and
  Expenses:
   Power, steam and syngas    36,275      45,475     123,047     139,644
   Engineering and
    operations                57,705      70,373     308,986     242,874
   Energy resources            1,907       3,438       9,837      11,037
   Development                 3,086       3,173      12,529      11,824
                            --------    --------    --------    --------
      Total Operating Costs   98,973     122,459     454,399     405,379
                            --------    --------    --------    --------
 Amortization of intangibles     618         618       1,854       1,854

 Selling, general &
  administrative expenses      7,004       7,433      21,072      23,897
 Restructuring charges            --       9,525          --       9,525
                            --------    --------    --------    --------
 Total Operating Costs
  and Expenses               106,595     140,035     477,325     440,655
                            --------    --------    --------    --------
 Earnings from equity
  investments                  5,061       3,367       9,283       8,454
 Gain on sale of oil and
  gas properties              11,890      16,822      11,890      16,822
 Interest Income               7,484       4,492      22,221      11,661
 Minority Interest & Other
  Income (Expense)                17         227         689         399
                            --------    --------    --------    --------
 Income before provision
  for taxes on income         18,402      47,105      39,822     116,985

 Provision for Taxes           3,718      15,371      10,145      36,482
                            --------    --------    --------    --------
 Net Income                 $ 14,684    $ 31,734    $ 29,677    $ 80,503
                            ========    ========    ========    ========
 Weighted Average Shares
  Outstanding             58,749,878  60,196,586  58,761,815  60,442,976
                          ==========  ==========  ==========  ==========
 Per share amounts:
 Net Income Per Share       $   0.25    $   0.53    $   0.51    $   1.33
                            ========    ========    ========    ========
-0-

CONTACT: Destec Energy Inc.

Stephen A. Wiley, 713/735-4022

Marvin L. Brown Jr., 713/735-4215