FOR IMMEDIATE RELEASE

KINGSTON, NEW YORK - The New York State Department of Public Service (DPS) Board on Electric Generating Siting and the Environment (Siting Board) and the Department of Environmental Conservation (DEC) and the Department of Health (DOH) have determined that the joint application for the Besicorp-Empire power project and Besicorp-Empire 100% recycled newsprint project is complete in compliance with state regulations. This action represents a major milestone for both projects. The determination by the Siting Board and DEC marks the start of a formal hearing process on the projects. The first public hearing is scheduled for early June as part of the process in reaching final project certification, which decision should be made within 12 months. The application addresses all of the pertinent environmental and siting issues of the projects including air, water, transportation, visual, location and economic impacts. Related to this determination, the DEC has issued draft air and water (including SPDES) permits for the projects.

Besicorp-Empire filed a preliminary application and draft Scoping Document on November 22, 2000, its SPDES permit application on July 10, 2001, its air permit application on October 19, 2001 and the joint Article X/DEIS application on December 20, 2001. A Supplemental filing was made on May 9, 2002.

First announced in May of 2000, Besicorp-Empire is proposing the construction of two facilities on the existing BASF site in the City of Rensselaer; a nominal 505 MW natural gas power cogeneration facility and a 330,000 metric ton per year 100% recycled newsprint manufacturing facility. Each project will result in the effective reuse of an existing brownfield site where production ceased in December 2000. Each project brings substantial economic benefits to the region. The two projects together will create over 1,000 construction jobs and up to 275 full time positions. In addition, the power project facility will respond to the state's need for additional generating capacity to continue the process of retiring older, more polluting facilities in New York with modern clean and efficient generation.

William Seils, President of Besicorp Empire Development Company, LLC, said
"We are very pleased with the compliance determination from the State of New York. This is an important and positive step towards the success of these two projects. We are committed to working with the community, interested parties, federal, state, and local agencies through the formal review of the application and ultimate certification of the Besicorp-Empire projects."

The Article X/DEIS application for the Besicorp-Empire Project is available to the public at the following local libraries, and an abstract on the companies website at www.Besicorp.com.

Rensselaer Public Library, 810 Broadway, Rensselaer, NY

Albany Public Library, 161 Washington Avenue, Albany, NY

North Greenbush Public Library, 138 Main Avenue, Wynantskill, NY

Troy Public Library, 100 Second Street, Troy, NY

East Greenbush Community Library, 225 Columbia Turnpike, Rensselaer, NY

A copy of the application may also be inspected during normal business hours at the office of the New York State Public Service Commission, Three Empire Plaza, 14th Floor, Albany, NY 12223.

1151 Flatbush Road, Kingston, NY 12401 USA
Tel: 845.336.7700 Fax: 845.336.7172

Contact: William T. Seils, President, 845-336-7700