Release Details

STAMFORD, CT (October 18, 2000) -- Star Gas Partners, L.P. ("Star") (NYSE:SGU, SGH), a diversified home energy distributor and services provider specializing in heating oil, propane, electricity and natural gas, announced today that it has purchased or signed contracts to purchase seven propane and heating oil distributorships over the past three and one-half months. These acquisitions represent over 20,000 customers, with an annual volume of approximately 19 million gallons. They had aThe combined purchase price of the distributorships was $18.6 million. Included in these seven companies were two propane distributorships, East Side Gas of Lawrence, Indiana and Blufton Propane of Blufton, Indiana, as well as five heating oil distributorships, including Schoen Fuel of New Jersey and four other independent companies, all based in Long Island, New York.

Since the beginning of Star's Fiscal Year 2000 (October 1, 1999), including these acquisitions, the Partnership will have purchased 18 propane and heating oil companies, representing over 60,000 customers and approximately 50 million gallons of annual volume at an aggregate purchase price of $58.4 million.

In commenting on these developments, Irik Sevin, Star's Chairman, said: "We are, of course, very pleased with Star's strategic acquisition program which has enabled the Partnership to opportunistically purchase many high quality companies that are integratable into our historic operating businesses. While we, of course, remain interested in individually large opportunities, we are particularly excited that this disciplined approach has enabled us to buy so many smaller but highly attractive businesses."

In addition to this acquisition activity, Petro, our heating oil division, has added approximately 4,600 net new customers this past quarter through internal marketing. While the efforts of the Partnership's acquisition departments and Petro's selling efforts are largely accountable for these results, we believe volatile energy prices also have contributed to this performance. Higher propane, and especially home heating oil costs, may be stimulating increased consolidation in these industries, as well as a flight by consumers to high quality larger distributors such as ourselves."

Star Gas Partners, L.P., is a leading distributor of home heating oil, propane and deregulated natural gas and electricity. Through its wholly owned Petro subsidiary, Star is the nation's largest retail distributor of home heating oil, serving approximately 350,000 customers in the Northeast and Mid-Atlantic. Star is the nation's eighth largest retail propane distributor, serving approximately 200,000 customers throughout the Midwest and Northeast. Star owns a controlling 72.2% interest in Total Gas and Electric, which sells natural gas and electricity to approximately 110,000 customers in the Northeast and Mid Atlantic.

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 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.