NEWS RELEASE

      For Release March 10, 1998         Media Contact:  Dennis Alexander

              COGENTRIX ENERGY PURCHASES OPERATING COGENERATION POWER
                  PLANTS IN WISCONSIN AND MINNESOTA FROM LS POWER

     CHARLOTTE, NC - March 10, 1998 - Cogentrix Energy, Inc. has signed an
agreement with LS Power Corporation by which Cogentrix will acquire LS Power
Corporation's seventy-four percent ownership interests in and the management 
of cogeneration plants in Whitewater, Wisconsin and Cottage Grove, Minnesota.

     The cogeneration plants utilize high efficiency combined cycle technology
and natural gas as the primary fuel.  The facilities have a combined electrical
output of approximately 500 megawatts and began commercial operation in 1997.
Finalization of the transfer of assets is contingent on the securing of various
consents and approvals.

     For Cogentrix, the purchase of the Whitewater and Cottage Grove assets
represents the successful implementation of a broad strategic initiative to
broaden its presence in the domestic U.S. electric generation market.

     David Lewis, vice chairman and chief executive officer of Cogentrix,
stated, "We have been aggressively seeking acquisition opportunities in the 
U.S. market for the past few years.  Cogentrix has a well-established 
reputation in the electric generation market as a solid performer with an 
open and proactive approach to dealing with our electric utility customers.  
We are extremely excited about the acquisition of the Whitewater and Cottage 
Grove assets because it allows us to further this reputation in a new 
geographic region with a new set of customers.  This acquisition marks the 
beginning of a comprehensive series of events that promise to further position 
Cogentrix as a leader in the generation of electric power across the United 
States."

     Cogentrix Energy, Inc., headquartered in Charlotte, N.C., develops, owns 
and operates electric generation and other power assets in the United States
and internationally.  In addition to offices in the United States, the Company
maintains offices in Singapore, India, China and Brazil.