Star Gas Completes Ohio Acquisition Broadening Midwest Retail Propane Operations

Business Wire, August 31, 1999

STAMFORD, Conn.--(BUSINESS WIRE)--Aug. 31, 1999--

Star Gas Partners, L.P. ("Star") (NYSE:SGU, SGH), today announced that it has completed the previously announced acquisition of Ohio Gas and Appliance Co. ("Ohio Gas"), a retail propane distributor with operations in Central and Southwestern Ohio and headquartered in Columbus, Ohio. Ohio Gas will continue to operate under that name and plans to retain all personnel. Financial terms were not disclosed.

Ohio Gas sells more than seven million gallons of propane annually at retail to over 6,500 customers. More than 70% of its volume is sold to residential customers. Since acquiring the nation's largest retail home heating oil distributor Petroleum Heat and Power Co. ("Petro") on March 26, 1999, Star has acquired six propane and heating oil distributors serving approximately 14,000 customers with annual sales of more than 12.5 million gallons (including a heating oil acquisition scheduled to close on September 2).

Commenting on Star's ongoing acquisition program, Irik Sevin, Star's Chairman and Chief Executive Officer said: "Having completed the acquisition of Ohio Gas, which enjoys an enviable reputation for quality operations and fits well within our long-term goals for growth, we will continue to selectively pursue additional high quality acquisition candidates."

Star Gas Partners, L.P., is a leading distributor of home heating oil and propane and has been an active consolidator in these industries. Through its wholly owned Petro subsidiary, Star is the nation's largest retail distributor of home heating oil, serving approximately 335,000 customers in the Northeast and Mid-Atlantic. Star is the nation's eighth largest retail propane distributor, serving approximately 185,000 customers throughout the Midwest and Northeast.

This news announcement contains certain forward-looking information that is subject to certain risks and uncertainties as indicated from time to time in the Company's 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission. Included among these risks and uncertainties are the effects of the weather on the Company's financial results, competitive and propane and heating oil pricing pressures and other factors impacting the propane and home heating oil distribution industries.