STAR GAS PARTNERS L.P. SELLS 1.5 MILLION UNITS AT $21.10 PER UNIT

Hart's Petroleum Finance Week, January, 2002

Star Gas Partners L.P. (NYSE: SGU and SGH) sold 1.5 million common units of limited partner interests in a publicly underwritten offering at $21.10 per unit. A.G. Edwards and Sons, Inc., UBS Warburg Securities LLC and Wachovia Securities were managing underwriters. The Stamford, Conn., energy services limited partnership will use net proceeds to reduce outstanding obligations under its propane operations' revolving line of credit.

Star said that it would use remaining net proceeds to fund acquisitions and growth capital expenditures, to finance seasonal working capital requirements and for general partnership purposes.