Curtis Wright Corporation Selects Electric City's EnergySaver for Facilities; Large-scale Shared Savings Project Estimated to Total $2,000,000.

Business Editors

ELK GROVE VILLAGE, Ill.--(BUSINESS WIRE)--May 16, 2001

Electric City Corporation (AMEX:ELC) announced today that Curtis Wright Corporation recently executed a memorandum of understanding to move forward with a corporate-wide shared savings, EnergySaver(TM) program. The project is ultimately expected to cover most of their largest facilities and approach $ 2,000,000 of total revenue to Electric City Corp.

"Curtis Wright's decision to move forward with our Shared Savings program follows the results of our team's engineering evaluation of the proposed EnergySaver(TM) project," stated John Mitola, CEO of Electric City. "As a sophisticated defense technology company, we know that they will require exacting performance standards and we are proud to live up to those expectations. This project is representative of many similar shared savings projects we are negotiating with customers across the country."

The project is being managed by Electric City of New Jersey and represents one of their largest steps with the company's Shared Savings program. As one of the Company's earliest distributors, Electric City of New Jersey's Dave Limanowski has witnessed the ongoing developments at Electric City first hand. "We have grown with Electric City since the earliest days," stated Dave Limanowski, President of Electric City of New Jersey. "When Electric City announced the financing programs it arranged with CIT, we immediately realized that these plans would allow us to sell much larger projects. Shared Savings allows us to offer customers the technology at no up-front cost. Since customers simply share their monthly savings, they gain immediate positive cash flow and earn an infinite return. Combining the EnergySaver(TM) technology with this kind of innovative financing is very powerful."

Curtis Wright Corporation is a diversified multinational manufacturing and service company that designs, manufactures and overhauls precision components and systems, and provides highly engineered services to the aerospace, defense, automotive, shipbuilding, processing, oil, petrochemical, agricultural equipment, railroad, power generation and metalworking industries. The Company's operations are conducted through eight manufacturing facilities, 39 metal-treatment service facilities and four component-overhaul locations.

"Our selection by Curtis Wright represents the kind of success we have been achieving with other manufacturers across the country," added Brian Kawamura, President/COO of Electric City. "Since we introduced Shared Savings earlier this year, we have looked to bring the package to leading customers in each major market segments. We are obviously very pleased to be selected by a 100 year leader in a technologically demanding field."

Since the beginning of 2001, Electric City has been focused on the introduction of their Shared Savings service and Virtual "Negawatt" Power Plant programs developed in conjunction with CIT (NYSE: CIT). These programs allow Electric City to provide EnergySaver(TM) and GlobalCommander technology to customers with no up-front cost allowing customers to cut their energy bills immediately. The Company expects these programs to significantly contribute to its growth during the latter half of 2001 and beyond as early customer project agreements begin implementation.

Electric City is a leading developer, manufacturer and integrator of energy savings technologies and custom electric switchgear. The Company currently markets the EnergySaver(TM), the GlobalCommander, TP3 and custom switchgear. Electric City is based in Elk Grove Village, Illinois and is traded on The American Stock Exchange under the symbol ELC. Additional information is available at the Company's website at www.electriccityeccc.com or can be obtained by contacting Glen Akselrod at The Stockpage at 800-797-5683 or [e-mail] and Tony Schor at Investor Awareness, Inc. at 847-945-2222 or www.investorawareness.com. Interested customers can call 847-437-1666.

This news release includes forward-looking statements that reflect Electric City's current expectations about its future results, performance, prospects and opportunities. Electric City has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates", "should", "typical", "we are confident" or similar expressions. These forward-looking statements are based on information currently available to Electric City and are subject to a number of risks, uncertainties and other factors that could cause Electric City's actual results, performance, prospects or opportunities in the remainder of 2001 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's sales expectations due to the Shared Savings and Virtual Negawatt Power Plant financing, the final revenue associated with the Curtis Wright project, the Company's limited operating history, the Company's history of operating losses, consumers' acceptance of the Company's new and existing products, the Company's use of licensed technologies, risk of increased competition, the Company's ability to successfully integrate acquired business products and technologies to satisfy consumer demands and requirements, the possible volatility of the Company's stock price, the concentration of ownership and the potential fluctuation in the Company's operating results. For further information about these and other risks, uncertainties and factors, please review the disclosure included under the captions "Description of Business" and "Management's Discussion and Analysis of Financial Condition or Plan of Operations" in Electric City's Quarterly Reports on Form 10-QSB and Annual Report on Form 10-KSB filed with the Securities and Exchange Commission in 2000. Except as required by the federal securities laws, Electric City undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this news release.