Electric City To Report Results of Record Sales in Year 2000; $7.2M in Sales Provides Momentum Which Continues Into 2001.

Business Editors

ELK GROVE VILLAGE, Ill.--(BUSINESS WIRE)--April 3, 2001

Electric City Corporation (AMEX: ELC) announced today that it will be filing its 2000 10-KSB report within the next 15 days for the 2000 fiscal year ending December 31, 2000. The report will reflect consolidated revenue of $7,200,000 for the year with a net loss of $10,200,000. Revenue for the year 2000 increased over 150% from the year earlier. As expected, the net loss increased due to one-time charges for acquisitions and other development activities. "We are extremely pleased with the significant growth we achieved in 2000, especially in the fourth quarter," stated John Mitola, CEO of Electric City Corp. "We have already enjoyed strong revenue run rates in the first quarter of 2001 and we expect our growth to continue through 2001."

The Company also announced today that customer interest in the Electric City/CIT Shared Savings program is extremely strong. To date, Electric City has received early interest from large-scale customers in the form of memorandums of understanding for its Shared Savings EnergySaver(TM) projects totaling over $15 million. The Company is currently working to take these memorandums of understanding to the contract implementation stage in order to begin shipping and installing these large-scale systems. "This initial interest represents strong acceptance of the combination of our EnergySaver(TM) technology with our Shared Savings Service and Virtual Negawatt Power Plant programs and truly indicates that we remain on track for significant growth in 2001," Mitola further stated, "We have only been marketing our Virtual Negawatt Power Plant and Shared Saving Service programs since the beginning of this year and we are already beginning to generate interest with new and prior customers."

Electric City's EnergySaver(TM) technology provides customers with a system that reduces electricity demand and consumption from lighting systems between 20% and 50% while keeping the lights on. In addition, Electric City's GlobalCommander control system provides real-time control, measurement and verification of the savings being generated at multiple facilities from a remote location. When combined with the Electric City/CIT Shared Savings Service Program, customers are capable of implementing system-wide energy savings programs, with no up-front cost, providing immediate positive cash flow to their operations. "The combination of our technology with our innovative CIT financing programs is beginning to drive our growth in a very scalable manner," continued Mitola. "To give our shareholders a sense of just how scalable this technology becomes with our financing programs, just two of our initial shared savings projects will cover over 700 facilities. We are confident that these initial agreements are just the beginning and we look forward to announcing additional successes."

The Company also announced that it is in the process of raising additional equity capital, which it expects to close in early April. "We have been negotiating this additional funding, which is nearing its completion," added Mitola. "We have frequently stated that we believed we required additional funding in order to support our desire to continue to pursue significant growth through product expansion, acquisitions and organization in the next few years. We will balance our need for growth and support with any potential dilution to our current base. We have been negotiating this funding with strategic, institutional investors who will be taking a long position in our company and who believe that we are in the right place at the right time"

A full analysis of last year's results will be included as part of the 10-KSB report.

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 and other financings, 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.