Energy and Energy Conservation Products Provider Utilisource Corp. Undergoing Board Reorganization as Company Moves into Energy Efficiency Products Distribution.

VAN NUYS, Calif. -- Utilisource Corp. (OTC:UTLS), an energy and energy conservation products provider, is undergoing a major reorganization on its board of directors as the company restructures and moves into the energy efficiency products distribution arena.

Jim Lezie, President of Utilisource, said major changes - expected to be confirmed at the company's next board meeting - include the return of original Utilisource founder Anthony Wayne to the board and the addition of long-time investor relations consultant L.J. Sabean as a board member.

Wayne's background includes more than 25 years of experience in the energy business including his involvement in the California deregulation of natural gas and electricity. He built the original Utilisource, created as an electric service provider under the California Electricity Act AB 1890, into a sales and marketing force of more than 400 independent sales people who were responsible for the procurement of more than 22,000 commercial accounts.

"This company has always been important to me and I'm delighted to be returning to a position on the board," Wayne said. "In reality, I've always been actively involved in the background and I'm pleased we've been able to pull some good people, good products and outstanding talent teams together to enable Utilisource to once again assume a significant role in the energy efficiency industry and in helping companies save money on their bottom line."

Sabean, whose background is in the investment banking industry, has provided support to Utilisource since 1997 after working with Wayne on an oil and gas project in Louisiana.

He predicted that, despite the company's inactive period over the past three years due to the stall of California's electrical deregulation, original investors should be able to easily recoup their investment based on some of the projects currently under way.

"Any company with a huge electric bill will be able to save money on lighting through Utilisource products," Sabean said. "They're going to have to look at it because it actually works. The public has to wake up because the price of oil is not going to go back down."

"I'm looking forward to serving as a director to help enhance the value of the company through my knowledge of the energy field," he added.

Lezie said the company's shift in emphasis is significant, adding that energy conservation today will be "more impactful than deregulation ever was or could be," adding that he sees conservation as the natural outgrowth of California's experiment in the deregulation of electricity.

"We are pleased to have both Mr. Wayne and Mr. Sabean joining our board at this exciting phase of energy conservation awareness in both California and the rest of the nation," Lezie said. "Both have obviously made a significant contribution to the company over the past year - Mr. Wayne in terms of overseeing our current restructuring and Mr. Sabean in terms of communicating our developing progress to the investors."

As a part of the current reorganization at Utilisource, Lezie said he is working to bring current all state and federal regulatory filings for publicly traded corporations.

Utilisource, through its exclusive energy-saving marketing effort with Element Service, Inc., is distributing a variety of new energy-saving products.

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.

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.