Officials say the man approached the girls while they were on their way to bible study class just after 4 p.m. Wednesday along East Tremont Avenue in Schuylerville.
Police say the man pulled up in his light-colored Subaru and approached the 12-year-old and 7-year-old to ask them for directions to McDonald's. He exposed himself, and then drove off.
He was wearing a black t-shirt with a white Jack Skellington logo from 'The Nightmare before Christmas,' and was wearing khaki shorts and carrying a jacket. Police say he is around 30-40 years old and about 5'10".
The police precinct is just a block away from where the man exposed himself.