Energy and Energy Conservation Products Provider Utilisource Corp. Completes Restructuring to Develop and Distribute Energy Efficiency Products Through Element Service, Inc.

VAN NUYS, Calif. -- Utilisource Corp. (OTC:UTLS), an energy and energy conservation products provider, has completed a major revitalization effort involving the development of a series of energy efficiency and conservation products to be distributed through Element Service, Inc., a Southern California-based full-service heating, air conditioning and energy conservation products company.

Jim Lezie, President of Utilisource, said he has been impressed with the interest in energy conservation - and in saving money - in today's business community. Lezie has been involved in the energy business since the deregulation of California's energy market in the 1990s.

"People are looking to conserve," Lezie said. "The conservation effort will have an impact many times beyond what was ever anticipated under deregulation."

He added that the conservation movement has tremendous opportunities because of new breakthroughs in electronics and upgraded software that goes into much of today's energy efficiency equipment.

Utilisource, through its exclusive energy-saving marketing effort with Element Service, Inc., is distributing a variety of new energy-saving products. Element Service has exclusive marketing rights to these products in the Southern California area, while Utilisource maintains exclusive rights for the products elsewhere in the United States.

The products, manufactured by the company Save You Energy, LLC of San Diego, include the D-Mand(R) Loop Loss Reduction Program(TM), a demand reduction pump that will lower natural gas bills by about 50 percent for large users such as apartment buildings, hotels, motels, hospitals, schools, office buildings and other major users of hot water.

Also included is 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) is a patented, base load variable lighting control and power reduction device which works in both indoor and outdoor commercial, institutional and industrial lighting systems - from parking structures to offices to manufacturing facilities.

Lezie said Utilisource today is focusing on both establishing demand and developing the means of delivering and serving equipment on the conservation side of power, although it may move into alternate energy sources that can be distributed "building by building." He added that he is continuing to monitor emerging technologies in the area of alternate energy and renewable generation.

Utilisource Corp. was created in 1997 in Brea, California, as Eastern Pacific Energy and was granted a Certificate of Registration by the California Public Utilities Commission to operate as an Electric Service Provider (ESP). The company became Utilisource in 1999.

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.