Element Service, Inc. and Utilisource Corp. Team up with Electric City to Distribute EnergySaver(TM) Energy Management Tool for Parking Structure and Business Lighting Systems.

VAN NUYS, Calif. -- A new agreement between Utilisource Corp. (OTC:UTLS), an energy and energy conservation products provider; Element Service, Inc., a full-service heating, air conditioning and energy conservation products company; and Electric City, a leading developer, manufacturer and integrator of energy savings technologies and building automation systems, has enabled the distribution of The EnergySaver(TM), a demand-side energy management tool that reduces energy consumption by 15 to 35 percent in business lighting systems.

The EnergySaver(TM), an upgraded version of an existing product to meet increasing demand for energy conservation technology, is a patented, base load, variable lighting control and power reduction device. It works in both indoor and outdoor commercial, institutional and industrial lighting systems -- from parking structures to offices to manufacturing facilities -- all while maintaining appropriate lighting levels for the user.

Fully programmable with upgraded computer controls and software to meet the demands of today's business, it allows facility managers to maximize energy savings by combining load management, market-based pricing, and incentive programs offered by today's deregulated "open access" energy market.

The device increases or decreases the active power supplied to the lamps of a ballasted lighting system -- without abrupt voltage changes -- using definitive, multi-staging of selected tap points provided on a toroidal autotransformer controlled by digital switching.

"We are delighted to have Electric City and its tremendous wealth of knowledge and expertise on board," said energy services veteran Shaun Lee, Chairman and Director of Element Service, Inc. "The EnergySaver(TM) product alone has already enabled Element Service to deliver additional energy savings -- and improved task lighting -- to our customers in a wide variety of industry market areas both in Southern California and nationwide. We look forward to a long and productive relationship with everyone at Electric City."

The product itself, an autotransformer power reducer, has the ability to automatically adjust lighting to appropriate levels during various demand periods of the day to achieve both maximum savings and maximum lighting efficiency.

A recent study by energy analysts at ASW Engineering in Tustin, California, shows that a typical installation with a demand of 35.1 kiloWatts during a 14-hour day and a demand of 47.4 kiloWatts during a 10-hour nighttime period can achieve an energy savings ranging from $5,811 per year at a 15 percent reduction to $11,622 per year at a 30 percent reduction, based on February 2006 figures.

Lee added that a typical installation can pay for itself in one to two years. He said the equipment qualifies for rebates of up to 100 percent with investor-owned utilities in California.

"The energy savings alone is impressive for any business -- particularly at a time increasing energy costs are expected to continue rising at a rapid rate," Lee said. "In addition, a business can maintain adequate lighting for any needed operation -- whether task lighting in business offices, higher level lighting for an industrial operation, or even architectural lighting for a lobby or a showroom floor."

Electric City, based in Elk Grove Village, Illinois, was formed in 1998 to bring new energy technology to market and has already completed nearly 2,000 customer installations -- including more than 50 Fortune 500 companies nationwide -- utilizing a variety of energy conservation technology.

Element Service, Inc. has partnered with Utilisource Corporation to launch a major exclusive energy-saving marketing effort for the Southern California region. Element Service, Inc., with more than 55 years combined experience in the energy business, is a full-service sales and service company for both residential and commercial air conditioning, heating and energy conservation products.

For more information on Utilisource, contact the company at [phone] or visit the company's web site at www.utilisource.com.

For more information on Element Service, Inc., contact the company at [phone] or visit the company's web site at www.elementservice.com.

Both companies are based in Van Nuys, California.

EDITORS -- Digital product photographs are available on request.