Electric City Announces Response to Financial Curiosity.

ELK GROVE VILLAGE, Ill.--(BUSINESS WIRE)--Aug. 19, 1999--

Electric City Corp. (OTC Bulletin Board: ECCC - news) today responds to the market's curiosity regarding the previously released Financial Audit. Every public company audits their financials. This is inherent in the nature of being a publicly traded organization. BDO Seidman Accountants and Consultants performed the audit in preparation for the highly anticipated Form 10, which is to be filed with the SEC. The information below was released on August 9, 1999.

FOR THE PERIOD INCEPTION TO APRIL 30, 1999

Selected Operating Data ------------------------------ Revenues

$208,473 Cost of Sales

135,000 S,G&A Expense 4,083,028 Net Loss 4,060,114 Weighted Average Common Shares Outstanding 11,178,937 Net Loss Per Share

(0.36)

The following is a breakdown of the $4,060,114: Research and Development Costs:

Research and development costs are charged to operations when incurred and are included in selling, general and administrative expenses. Total research and development costs charged to operations were $1,923,000.

Supplemental Disclosures of Cash Flow Information: Stock issued in exchange for

conversion of loan from stockholders $500,000 Stock issued as partial payment for

land and building 340,000 Stock and warrants issued in exchange for services received 2,715,899 Cash paid for interest

44,000

Electric City Corp. was a development stage company created to commercialize the application of licensed proprietary technology that reduces the amount of electricity required to power various lighting facilities in commercial buildings, factories, and office structures as well as street and parking lot lighting. Through April 30, 1999, The Company's activities have included developing prototypes and installing test systems at sites in the U.S. and establishing the beginnings of a natural distribution system. The Company presently has 21 state distributorships. As a result of those activities, $2,503,000 of the S,G&A Expense above resulted from the exchange of the Company's common stock for consulting services provided to the Company, and the Company used cash of $1,724,048 in operating activities and $945,320 in investing activities to purchase property and equipment.

Except for the historical information contained herein, this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 as amended, and are subject to the safe harbors created thereby. The Company's future actual results could differ materially from the forward-looking statements discussed herein.