ABSTRACT. We find a nonsemisimple fusion algebra F p associated with each (1, p) Virasoro model. We present a nonsemisimple generalization of the Verlinde formula which allows us to derive F p from modular transformations of characters.

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We consider a BRST approach to G/H coset WZNW models, {\it i.e.} a formulation in which the coset is defined by a BRST condition. We will give the precise ingrediences needed for this formulation. Then we will prove the equivalence of this approach to the conventional coset formulation by solving the the BRST cohomology. This will reveal a remarkable connection between integrable representations and a class of non-integrable representations for negative levels. The latter representations are also connected to string theories based on non-compact WZNW models. The partition functions of G/H cosets are also considered. The BRST approach enables a covariant construction of these, which does not rely on the decomposition of G as $G/H\times H$. We show that for the well-studied examples of $SU(2)_k \times SU(2)_1/SU(2)_{k+1}$ and $SU(2)_k/U(1)$, we exactly reproduce the previously known results.Comment: 23 pages latex file. G\"oteborg ITP 93-01 ( Not encoded version