Laidlaw Energy to Acquire 14 MW California Biomass Plant

Date: February 2, 2011

Source: Laidlaw Energy Group, Inc.

Laidlaw Energy Group (New York, NY) is buying a 14 megawatt biomass-to-energy power plant in Susanville, CA from Renegy Holdings, Inc. and affiliates. "We are very pleased to be moving forward with the expansion of our business model to the West Coast. We are very excited about the California market for alternative energy and the opportunities it presents," said Laidlaw President & CEO Michael B. Bartoszek. "This transaction is part of a larger strategy of growth and diversification that we have been working on for some time." He said the company expects to make even another "major acquisition" in the near future. He founded Laidlaw Energy in 2002 to specifically develop renewable energy power plants. The company has two projects already under development -- a 7 megawatt wood waste fed biomass plant in Cattaraugus County, NY and a soon to be developed 65 megawatt biomass-energy power plant located on the site of the former Fraser Paper Mill in Berlin, NH.


PRESS RELEASE

Laidlaw Energy to Acquire California Biomass Plant

Laidlaw Energy Group, Inc. (Ticker Symbol "LLEG"), announced today that it has entered into a Letter of Intent to acquire a 14 megawatt biomass-energy power plant from Renegy Holdings, Inc. and certain other affiliated shareholders.

Commenting on the contemplated acquisition, Laidlaw President & CEO Michael B. Bartoszek stated "We are very pleased to be moving forward with the expansion of our business model to the West Coast. We are very excited about the California market for alternative energy and the opportunities it presents. We are also excited about the prospect of a close working relationship with Bob Worsley and his team." Mr. Worsley is the President & CEO of Renegy as well as the founder and former President & CEO of Skymall, Inc.

Bartoszek went on to state "This transaction is part of a larger strategy of growth and diversification that we have been working on for some time. We shortly expect to announce another major acquisition that will further expand our business. In addition, we have been working to add highly qualified project management personnel to our team so that we have the necessary resources in place to manage multiple projects across the U.S."

Laidlaw does not anticipate any significant complexity with this transaction and anticipates closing on the acquisition within 45 – 60 days.

About Laidlaw Energy Group

Laidlaw Energy is engaged in the development of independent power plants that generate electricity from renewable resources, with a particular emphasis on biomass power. Laidlaw Energy's mission is to build and manage a profitable portfolio of biomass facilities through the development of new facilities and acquisition of existing facilities, and in so doing become the leading supplier of biomass power in the United States. Laidlaw Energy is headquartered in New York, New York. For more information, please visit our website at www.LaidlawEnergy.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.

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