Interstate Gen: Letter of Intent

                           News Release


FOR IMMEDIATE RELEASE                                  CONTACT
October 8 1997                                         Francis C. Campbell
                                                       (610) 644-1665


                IGC SUBSIDIARY SIGNS LETTER OF INTENT
                FOR SOLID WASTE RECYCLING FACILITY IN
                             ST. MAARTEN
                                  
                                  
     ST. CHARLES, Md._ Interstate General Company L.P. (AMEX, PSE:

IGC), a diversified real estate organization, announced that its

subsidiary, Caribe Waste Technologies (CWT), has signed a Letter of

Intent with the Island Government of St. Maarten (Dutch side) to

prepare a final proposal and to negotiate to privately finance,

design, construct and operate a solid waste recycling and electric

generating facility.  The facility will use the Thermoselectr

technology and will also upgrade and operate St. Maarten's existing

electric generating system.

     The Facility will process domestic, commercial, industrial and

medical wastes, sewage sludge and tires and will recycle these wastes

into useful commercial products including electricity, a salt-like

mineral product useful as construction aggregate, a metal alloy

material useful in the manufacture of metal products.

     The Thermoselectr technology is unique in its ability to process

a variety of wastes without an expensive front-end waste pre-sorting

system.  The Facility will produce no water emissions, no ash,

and air emissions far below the limits prescribed by European

governments and the United States Environmental Protection Agency.

     Thomas B. Wilson, President of CWT, said "obtaining approval

from the Government of St. Maarten to proceed with this project

represents a successful conclusion of more than two years work and is

a significant milestone in the success of CWT."

     Francis C. Campbell, Executive Vice President and Chief

Operating Officer of CWT, said "The ability of the Thermoselectr

technology to achieve 100 percent recycling of St. Maarten's wastes

in an environmentally and economically superior manner represents a

major step forward in preserving the pristine environment of the

Caribbean."

     CWT will prepare and submit plans for the project to the Island

Government of St. Maarten for its final review and approval by

January 1, 1998.

     Founded in 1957, IGC and its affiliate companies, specialize in

the development of environmentally sound waste disposal projects,

community development, homebuilding, investment apartment properties

and asset management services.

Thermoselectr is a registered trademark.

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