Laidlaw Energy Group, Inc. Issues Update to Shareholders.

NEW YORK -- Laidlaw Energy Group, Inc. (OTC: LLEG) President & CEO, Michael B. Bartoszek, issued today the following update to the shareholders of Laidlaw Energy:

Dear Shareholders:

I firmly believe that success in business requires the three "Ps",
persistence, patience and perspiration.


				

				
				 
				
  These qualities are
especially important when engaged in the development of major capital
projects like power plants.

The time frame from the start of development of a power plant until
the commencement of commercial operations can be two or three years.
During that time, it is not unlikely to encounter significant
obstacles.  Even companies like ours, that are engaged in the
development of renewable energy projects face, face numerous hurdles.

Since we commenced development of our New York biomass energy project
in mid-2004, we have faced and overcome a number of challenges.

    -- Early in the project we had to compete against hundreds of
       other applicants in order to obtain grant financing to help
       fund the development of the project. We rose to the challenge
       and obtained $1 million dollars of grant funding from the New
       York State Energy Research and Development Authority.

    -- Next we had to find a way to keep the capital costs of the
       project down in order to make the project economically viable.
       We responded by incorporating refurbished equipment into the
       project at a fraction of the price of new equipment. We scoured
       the country and were able to locate just the right boiler and
       turbine, in excellent condition, and at highly favorable
       prices.

    -- The next challenge we had was to make sure we had sufficient
       funding to complete the project and, once again, we succeeded
       by not only obtaining the funding we needed, but also by
       forming a great strategic relationship with a major
       international power developer and the owner of the largest
       utility in the Dominican Republic.

    -- Recently, we were faced with the challenge of having to find a
       way to generate cash flow from the sale of the project's
       renewable attributes, also known as "RECs". RECs trade
       separately from a power plant's physical electric output,
       generating a separate source of revenue, and represent the
       premium that is paid to renewable generators by retail energy
       suppliers in order to demonstrate compliance with
       state-mandated renewable energy targets. Although New York has
       passed renewable energy legislation, it is in the early stages
       of implementing its renewable program and a market has not yet
       developed for RECs. Faced with this challenge, we were able to
       obtain approval from the state of Massachusetts for the sale of
       our RECs in that market, thus enabling us to generate cash flow
       from the sale of our RECs while the New York market is
       established. Massachusetts has some of the most stringent
       requirements for biomass generators in the country, as well as
       the most favorable market for RECs.

    -- Additionally, after a thorough review, we have also obtained
       the requisite modification of the New York facility's Title V
       air permit. This required the approval of both the US EPA and
       the State of New York, in order to allow for the construction
       and operation of the proposed biomass energy facility.

These are just a few of the challenges we have faced and overcome as a
result of our hard work, patience and unrelenting persistence.  The
only remaining hurdle we need to overcome in order to make the
necessary upgrades to the facility and commence operations using
biomass fuel, is to obtain local planning board approval.  We are
nearing the end of this process and expect a decision in the near
future.  Planning boards in New York, influenced by local politics and
NIMBYism, have been known to try to delay decisions on matters such as
ours for as long as possible.  Whether it is another three weeks or
three months, a decision is imminent and we are well within our rights
to make the proposed upgrades at our existing, permitted facility.
Just as we have consistently done in the past, we will persist until
we overcome this obstacle as well.

In the meantime, we continue to pursue additional grant funding and
structure transactions that we expect will improve the overall
enterprise value of the project, as well as the potential future cash
flows.  We also continue to diligently pursue the other development
opportunities that we have in the pipeline and hope to provide an
update on these in the near future.

                                                  Sincerely,

                                                  Michael B. Bartoszek
                                                  President & CEO

About Laidlaw Energy Group - Cleaner Energy for a greener future

Laidlaw Energy Group (LLEG) is engaged in the development of independent power plants that generate electricity from renewable resources. LLEG's mission is to build and manage a profitable portfolio of renewable energy facilities through development, acquisition, conversion of existing facilities and through partnering with manufactures that have significant electric and thermal needs. LLEG is headquartered in New York, New York. For more information on LLEG, please visit our website at NYENRG.com.

This communication contains statements expressing expectations of future events and/or results which may include, without limitation, statements concerning anticipated financial performance, business prospects, technological developments, potential markets, new products, research and development activities and similar matters. Such statements constitute forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. All statements based on future expectations rather than historical facts are forward-looking statements that involve a number of risks and uncertainties, and LLEG cannot provide assurance that such statements will prove to be correct. LLEG undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.