KeySpan Energy Adopts Shareholder Rights Plan


              Brooklyn  and  Hicksville,  NY,  March,  30,  1999 - The  Board of
Directors of KeySpan Energy (NYSE:KSE) has adopted a Shareholder  Rights Plan to
protect the interests of its stockholders in the event of a proposed takeover of
the company.

              "While  there  has been no known  effort  to  acquire  control  of
KeySpan  Energy,  the  Shareholder  Rights Plan  protects  the  company  against
potential   takeover  attempts  that  could  jeopardize  the  interests  of  our
shareholders,"  said Robert B. Catell,  Chairman and CEO of KeySpan Energy. "The
plan is not intended to prevent an  acquisition  that is in the best interest of
our shareholders."

              The  plan,  which  is  similar  to  those  adopted  by many  other
companies,  creates a mechanism  that would dilute the  ownership  interest of a
potential  unauthorized  acquiror.  The plan  establishes  one  preferred  stock
purchase "right" for each  outstanding  share of common stock to shareholders of
record on April 14, 1999. Each right, when  exercisable,  entitles the holder to
purchase  1/100th of a share of Series D Preferred  Stock, at a price of $95.00.
The rights generally become  exercisable  following the acquisition of more than
20 percent of KeySpan Energy's common stock without the consent of the Company's
Board of Directors.

              Prior to becoming  exercisable,  the rights are  redeemable by the
board of  directors  for $0.01 per right.  If not so  redeemed,  the rights will
expire on March 30, 2009.

              KeySpan Energy operates two utilities that distribute  natural gas
under the Brooklyn Union name to approximately 1.6 million customers in New York
City and on Long Island.  It is the fourth largest  gas-distribution  company in
the United States.  Other KeySpan companies market a portfolio of energy-related
services in the Northeast,  operate  electric-generation  plants on Long Island,
and provide operating and customer services to one-million electric customers of
the Long Island Power Authority.  KeySpan's  unregulated energy activities focus
on three principal lines of business: gas exploration and development, primarily
through The Houston  Exploration  Company;  domestic pipelines and storage;  and
international activities,  including gas-processing in Canada, and gas pipelines
and local-distribution in Northern Ireland. The Company's mission is to become a
premier  energy  company  serving  customers  in  the  Northeast  and  providing
long-term  value  to its  shareholders.  For  more  information,  visit  KeySpan
Energy's web site at: www.keyspanenergy.com.

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