ERCOT Processing Electricity Switch Backlog for NewPower.

Business Editors

PURCHASE, N.Y.--(BUSINESS WIRE)--Oct. 4, 2001

The New Power Company(TM) today announced that the Electric Reliability Council of Texas (ERCOT) is processing the requests to switch the over 50,000 residential consumers which have chosen NewPower.

ERCOT is responsible for processing the requests to switch customers for all utilities and competitive retail electric service providers.

ERCOT will, as the next step, send notification letters to the consumers for their confirmation. Meter readings will then be performed by the utilities. The entire process can take anywhere from two weeks to two months, and it is then that consumers can actually begin to receive power flow from a competitive retail electricity provider.

NewPower has captured more than 50 percent of the customers who have decided to switch to competitive electric suppliers for the HL&P and TXU markets combined, and continues to sign on customers daily. ERCOT will process these enrollments as received.

About NewPower Holdings, Inc.

NewPower Holdings, Inc. (NYSE: NPW), through its subsidiary, The New Power Company, www.newpower.com, is the first national provider of electricity and natural gas to residential and small commercial customers in the United States. The Company offers consumers in restructured retail energy markets competitive energy prices, pricing choices, improved customer service and other innovative products, services and incentives.

Cautionary Statement

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties and may differ materially from actual future events or results. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our goals will be achieved. Important factors that could cause actual results to differ from estimates or projections contained in the forward-looking statements include our limited operating history; delays or changes in the rules for the restructuring of the electric and natural gas markets; our ability to attract and retain customers; our ability to manage our energy requirements and sell energy at a sufficient margin given the volatility in prices for electricity and natural gas; and our dependence on third parties to provide critical functions to us and to our customers. Readers are referred to the Company's Annual Report on Form 10K for the year ending December 31, 2000 and our S1 on file with the Securities and Exchange Commission for a discussion of factors that could cause actual results to differ materially from these forward-looking statements.