Laidlaw Energy Group, Inc. (Ticker Symbol “LLEG”) is pleased to provide its shareholders with the following update on the Company’s progress.

Dear Laidlaw Energy Shareholders and Friends:

I am writing today to provide you with an update on several matters that I believe are of interest to our shareholders.

Massachusetts Projects

Both of the projects we are currently pursuing in Mass are progressing well. We have been negotiating the asset purchase agreement for one of the projects for quite some time and we just provided the seller what we hope will be close to the final draft. So, while timing is always a bit challenging to estimate, we hope to execute this agreement in the near future. We are very excited about this project, because it is already qualified as a renewable generator and we believe it already possesses certain permits (subject to confirmation), so it is potentially a very fast-track project for us.

The other project in Massachusetts that we have been pursuing is also moving along well. For this project, the plan is to lease the existing power house while we further develop the project and then the lease would convert to a purchase once we have secured all approvals to operate as a biomass plant. We are currently negotiating this document. This is an operating power house that currently serves the thermal energy needs of a significant manufacturer. We are currently negotiating a 20 year energy services agreement with this company to serve its thermal energy needs from the proposed biomass plant. This project seems to be gathering a lot of support from local and state political sources and could really be a template for future projects. Indeed, the current owner of the power house has proposed a similar arrangement at another location that we are currently exploring.

Berlin Project

The New Hampshire Site Evaluation Committee has accepted our permit application as complete. See http://www.nhsec.nh.gov/2009-02/documents/100126application_order.pdf

The 8 month clock to a decision commence as of the date of the acceptance. We expect to have a public meeting on the application in approximately 30 days.

Joint Venture

We have started to receive funds from the HLE joint venture to cover overhead and development costs, so we expect this will be a significant positive factor going forward in terms of reducing LLEG's capital needs. There is a note due to us at the end of February in connection with the JV that is expected to yield significant additional working capital and is anticipated to allow us to be profitable for fiscal 2010.

Ellicottville, NY Project

Last month we met with the Town Board representing the Town of Ellicottville. The purpose of the meeting was to discuss the potential resolution of the dispute concerning our existing power plant located there and our plan to convert it to biomass fuel. While the meeting was cordial and productive in terms of fostering increased understanding between the parties as to their views and concerns, our offer of settlement was not accepted. We continue to pursue this project and hope a amicable resolution can be achieved. Since we are left with no other alternative, the state and Federal litigation will continue to move forward in the interim.

Corporate Governance

We are exploring numerous additional options to increase the transparency of the Company to stakeholders. While we continue to explore the possibility of listing our securities to trade on the OTCBB or another venue, it is my hope that we will voluntarily commence disclosure of additional company information this fiscal year so stakeholders will have much the same information irrespective of whether we choose to go forward with a new listing or not.

I hope this information proves helpful to our stakeholders in terms of fostering an increased understanding of our business and current activities.

Very truly yours,

Michael B. BartoszekPresident & CEO

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.