Electric City Corporation Completes Illinois Deal.

ELK GROVE VILLAGE, Ill.--(BUSINESS WIRE)--Sept. 8, 1999--

Electric City Corp. (OTCB Bulletin Board: ECCC) announces today that the final documentation of the Electric City of Illinois L.L.C. Agreement has been executed (see also ECCC's July 21st release). Mr. Jim Stump, President of RCI Components and Dia Mac Electric, has agreed to and completed the following obligations: a deposit of $500,000 and a letter of credit in the cumulative amount of $3 million. The letter of credit will secure the first year sales of Electric City of Illinois, LLC of which $250,000, or more, will be purchased each month for the first 12 months of the 10-year distribution agreement.

Electric City of Illinois, LLC has issued a $2 million investment in a 506 Private Placement of ECCC.

"This type of investment into the product and future success of the organization by way of the stock purchase, demonstrates a sincere confidence in Electric City Corporation," stated Joseph C. Marino, CEO and Chairman of the Board of Electric City Corp.

"Having been involved with both the EnergySaver and Electric City Corp. since the beginning, I have the utmost confidence in the organization and product. I appreciate the opportunity to be involved," stated Jim Stump, President of Electric City of Illinois LLC.

Jim Stump has been a union electrician for over 20 years in the Local 134. Ready Components Incorporated is wholly owned by Jim Stump and is a sister company of Dia Mac Electric, located in Bridgeview, Illinois. RCI was founded to distribute the EnergySaver technology locally in the state of Illinois. Dai Mac Electric is and electrical contractor, which caters to the mid-size commercial/industrial market.

The EnergySaver: State of the Art Lighting Control Technology is a proprietary energy management system designed to reduce the cost of lighting. These savings are achieved without a loss in essential brightness and without reducing the number of hours the lights are used.

Electric City Corp.(www.electriccityeccc.com), located in Elk Grove Village, Ill, is an energy technology and manufacturing company created to introduce this State of the Art lighting Control Technology to the United States after 17 years of success in Europe. Electric City Corporation markets and manufactures the EnergySaver products that offer savings in the range of 20% to 50% to the commercial sector on their utility bills and lighting related expenses. Some of Electric City's clients include, Tru Vue, a subsidiary of APOGEE ENTR (APOG), Gart Sports/ Sportmart, ITT McDonnel & Miller, and automobile dealerships including Ford and Dodge.

Except for the historical information contained herein, this press release contains forward-looking statements within the meaning of Section 27A of the Securities Exchange Act o f 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.

For additional information please contact: Electric City's Stephanie Cox, Vice President of Corporate Marketing and Investor Relations at 847-437-1666.