PRESS RELEASE


                          CTG RESOURCES, INC. ANNOUNCES
                             SHAREHOLDER RIGHTS PLAN





   FOR IMMEDIATE RELEASE


   Hartford, Connecticut, December 1, 1998 -- CTG Resources, Inc. (NYSE: CTG)
   announced today board action adopting a shareholder rights plan that
   provides for rights to be issued to shareholders of record on December 18,
   1998.

   According to Arthur C. Marquardt, CTG's President and Chief Executive
   Officer, "The rights plan adopted today is similar to the shareholder rights
   plans adopted by literally hundreds of other companies in an effort to
   protect shareholders from coercive takeover practices or takeover bids that
   are inconsistent with the interests of the company and its other
   constituents.  The rights plan is intended to assure that CTG shareholders
   receive fair and equal treatment if efforts are made to gain control of the
   Company without paying all shareholders a premium value."  

   Under the plan, the rights will initially trade together with CTG common
   stock and will not be exercisable.  In the absence of further board action,
   the rights generally will become exercisable and allow the holder to acquire
   CTG common stock at a discounted price if a person or group acquires 10
   percent or more of the outstanding shares of CTG common stock.  Rights held
   by persons who exceed the applicable threshold will be void.  In certain
   circumstances, the rights will entitle the holder to buy shares in an
   acquiring entity at a discounted price.

   The plan also includes an exchange option.  In general, after the rights
   become exercisable, the Board of Directors may, at its option, effect an
   exchange of part or all of the rights -- other than rights that have become
   void -- for shares of CTG common stock.  Under this option, CTG would issue
   one share of common stock for each right, subject to adjustment in certain
   circumstances.  

   CTG's Board of Directors may, at its option, redeem all rights for $.01 per
   right, generally at any time prior to the rights becoming exercisable.  The
   rights will expire on December 18, 2008, unless earlier redeemed, exchanged
   or amended by the Board of Directors. 

   The issuance of the rights is not a taxable event, will not affect CTG's
   reported financial condition or results of operations (including earnings
   per share) and will not change the way in which CTG common stock is
   currently traded.

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