Release Details

Star Gas Partners Announces Extension Of Change Of Control Offer For Outstanding Old Senior Notes

June 16, 2006
Star Gas Partners Announces Extension Of Change Of Control Offer For Outstanding Old Senior Notes

STAMFORD, CT (June 16, 2006) -- Star Gas Partners, L.P. (the "Partnership" or "Star") (NYSE: SGU), a home energy distributor and services provider specializing in heating oil, today announced that it is extending until 5:00 p.m., New York City time, on June 22, 2006, unless further extended prior to such time, the expiration date of its change of control offer to purchase (the "Change of Control Offer") the $7.6 million principal amount of 10.25% Senior Notes due 2013 (the "Old Notes") that remain outstanding under the Amended and Restated Indenture dated April 28, 2006 (the "Indenture") by and between the Partnership, Star Gas Finance Company and Union Bank of California, N.A., as trustee. All other terms of the Change of Control Offer remain unchanged.

As of 5:00 p.m., New York City time, on June 15, 2006, the original expiration date of the Change of Control Offer, Star was advised by the trustee that approximately $100,000 million of the Old Notes had been validly tendered for repurchase, representing approximately 1.3% of the Old Notes outstanding.

The Change of Control Offer is required pursuant to Section 3.9 of the Indenture. Effective as of April 28, 2006, the Partnership completed a strategic recapitalization (the "recapitalization") pursuant to the terms of that certain unit purchase agreement dated as of December 5, 2005, as amended (the "unit purchase agreement"), by and among Star Gas LLC ("Star Gas"), Kestrel Energy Partners, LLC ("Kestrel"), Kestrel Heat, LLC ("Kestrel Heat" or the "general partner") and KM2, LLC ("M2"). In connection with the recapitalization, Star Gas withdrew as the general partner of Star Gas Partners and Kestrel Heat was named as the successor general partner, which constituted a "change of control" under the Indenture.

Persons with questions regarding the Change of Control Offer should contact Union Bank of California, N.A., the trustee, at: (646) 452-2012.

Star Gas Partners, L.P., is the nation's largest retail distributor of home heating oil. Additional information is available by obtaining the Partnership's SEC filings and by visiting Star's website at www.star-gas.com.

CONTACT:
Star Gas Partners
Investor Relations
203/328-7310

Robert Rinderman, Steven Hecht
Jaffoni & Collins Incorporated
212/835-8500 or SGU@jcir.com

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