Laidlaw Energy Group, Inc. Issues Shareholder Update

NEW YORK--(Business Wire)--
Laidlaw Energy Group, Inc. (Ticker Symbol "LLEG") is pleased to
provide its shareholders with the following update.

Dear Laidlaw Energy Shareholders and Friends:

As we start the second quarter of 2008, I feel this is a good time
to update you on our progress and recent events, as well as future
opportunities.

First among our recent accomplishments is the execution of the
Sale and Leaseback Agreement with HH Capital Advisors, LLC
(www.HHCapital.com) for the financing of our Berlin, NH biomass-energy
project. A news story from the Dow Jones Clean Tech Investor
Newsletter discussing some of the details of the proposed transaction
can be found on our web site at
http://www.laidlawenergy.com/breaking-news.html.

We have received several questions from shareholders as to why we
chose to finance the Berlin project in this manner as opposed to a
more traditional approach involving project debt and equity. The
primary reason we decided to go in this direction is that, subject to
the terms of the Agreement, it is expected to provide us with all of
the requisite financing for the project on terms we feel are
advantageous and leave us with the majority of the equity cash flows
from the project.

Though we received offers for financing from several major
investment banks, the financing was limited to the development stage
of the project, exposing us to the risk of obtaining construction and
permanent financing for the project and the unknown factor as to what
those terms would be 12 months hence - particularly in light of the
current uncertainty in the credit markets. Rather, we felt it was in
the best interest of the Company to define financing terms now in an
agreement with a party that is willing to meet our funding
requirements and we believe the Agreement with HH Capital accomplishes
this goal. We are particularly encouraged that HH Capital is willing
to invest in the project at this stage and assume the development
risk. Typically, the developer bears all of the costs of development
and the associated risks until all requisite permits and material
contracts are in place. We feel the fact that we have been able to
diverge from this typical format speaks highly of the project and the
development team.

On a separate but related topic, we have received a number of
inquiries from shareholders as to whether any constraints on the
Berlin Project to export its power to the grid once construction has
been completed. There have been a number of stories in the local media
that describe a "transmission problem" in the Northern part of New
Hampshire, but we feel they do not have a complete understanding of
the situation.

There is a strong desire by numerous parties in New Hampshire to
increase the transmission capacity in the Northern part of the state
in order to encourage development of renewable energy projects and we
support these efforts, though we believe any such upgrades should be
based on a realistic assessment of how much generation can actually be
put into commercial operation in the area.

In the near term, we believe that there currently exists
sufficient resources to handle the output of our project, as well as
the proposed 100 megawatt wind project. This is based on significant
research on our part on this issue and discussions with parties who
have significant knowledge in this area.

The suggestions in the press that transmission upgrades in
Northern New Hampshire will cost $200 million and take many years is
predicated on the assumption that over 400 megawatts of generation
will be developed. We believe this is a flawed assumption, as all of
the proposed projects are unlikely to come to fruition. When the focus
is put on viable projects, we feel the issue of transmission becomes
significantly more manageable.

Continuing our progress toward obtaining an Interconnection
Agreement, we have recently entered into an agreement with ISO New
England to move forward with a transmission feasibility study for the
project, which is the next step in the process. This is a $50,000
commitment on the part of the Company and we continue to fund these
development costs pending the completion of the proposed financing.

With respect to future prospects for the company, we have spent
considerable time developing a pipeline of opportunities to fuel the
growth of the Company. Like many things in life, some things that seem
promising initially do not work out, and others that seem less
attractive become more viable as we peel back the layers and learn
more. As a matter of course, we often spend considerable time
negotiating deals, as we always want to obtain the most favorable
terms and have no problem walking away if we feel the terms are not
right. We feel that certain of the promising opportunities that we
have been working on for some time are close to resulting in one or
more new projects and we are optimistic that we will have further
updates on this very soon.

With respect to our New York project, we are awaiting a decision
from the Court on the motion argued on March 4th and we expect that
consistent with the guidelines of the NY courts, a decision can be
expected within 60 days.

With respect to the trading of the Company's shares, we continue
to believe that becoming a fully reporting company and listing our
shares for trading on the OTCBB is the next logical step for us and we
continue to work in furtherance of this objective, which also includes
evaluating possible opportunities to acquire a listed company.

In closing, I feel we have made significant progress during the
first quarter of 2008. I believe things are really coming together for
Laidlaw Energy and we will see the Company's growth accelerate over
the coming months.

-0-
*T
Very truly yours,

Michael B. Bartoszek
President & CEO
*T

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. LLEG'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 Laidlaw cannot provide assurance that
such statements will prove to be correct. Laidlaw undertakes no
obligation to update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise.

Laidlaw Energy Group, Inc.
Edward D. Meyers, 212-480-9882
info@LaidlawEnergy.com

Copyright Business Wire 2008