Excelergy Closes 2002 with Record Revenues and Dramatic License Growth.

Business Editors/High-Tech Writers

LEXINGTON, Mass.--(BUSINESS WIRE)--Jan. 7, 2003

Excelergy(R) Corporation, a world leader in high performance software products for critical business processes in the energy/utility industry and other restructuring value chains, reported today that it achieved record performance in 2002 in revenues, profitability and other key metrics. Annual revenues were at an all-time high, led by a 60 percent growth in both license and maintenance revenues.

"License and maintenance revenues now represent more than two-thirds of our total revenues," said Excelergy president and chief executive officer Bill Mahoney. "That tracks our business model and is exactly where a software company wants to be today. In addition, since we have been able to fund the business' needs from operations, our cash position remains very strong."

In 2002, Excelergy client services bookings were also at an all-time high, driven largely by repeat business. Increased staffing in its Europe and Asia-Pacific offices contributed to significant new client agreements in those regions as well; in Europe, Excelergy's 2002 revenues more than doubled over the previous year's levels.

"These results are a tribute to the drive and commitment of the entire Excelergy team to deliver superior value and satisfaction to our clients, partners and stakeholders--regardless of the state of the economy at large," added Mahoney. "With a client base of more than 50 deployments in 8 countries, we continue to stand out among software and technology providers because our products continue to deliver rapid, measurable and tangible ROI in terms of increased revenues, reduced costs and accelerated cash flows."

Key Excelergy events during 2002 included:

-- Signed major new contracts with clients including US-based Green Mountain Energy Company, Energiedirect (subsidiary of The Netherlands' largest energy, cable and waste processing company Essent NV) Singapore's SembCorp Utilities for Excelergy Revenue Manager(TM), and Australia's ETSA Utilities for Excelergy BusinessRunner(TM).

-- Deployed Excelergy Trader BackOffice(TM) at TXU Energy Services, the largest competitive energy retailer in the US.

-- Completed the first major license sale of Excelergy Customer Value Analyzer(TM) to AT&T Broadband.

-- Closed a significant add-on agreement with American Electric Power, broadly expanding AEP's use of Excelergy systems for both its regulated and unregulated businesses.

-- Completed the successful, on-time implementation of Excelergy MarketRunner(TM) for the Italian wholesale power exchange, a contract awarded to Excelergy in the final days of 2001. Excelergy MarketRunner was successfully deployed at Gestore del Mercato Elettrico in June 2002, in a span of less than six months. The exchange is now in the final stages of testing, ahead of schedule for the 2003 market opening. Since other implementations of this size and scope historically have taken up to three times longer--and have cost 3 to 10 times more--it is estimated that the on-time and on-budget deployment of Excelergy MarketRunner will save Italian power consumers more than 1 billion euros.

-- Announced a strategic alliance with Siebel Systems to deliver CustomerPoint(TM), the global energy/utility industry's most comprehensive front-to-back office software platform. The joint solution is a complete end-to-end customer relationship management and billing system combining the proven performance and flexibility of both Excelergy Revenue Manager and Siebel eEnergy(TM).

-- Continued its aggressive response to growing market demand for Excelergy's software platforms in its Europe and Asia-Pacific regions by increasing its sales, marketing, and client services staff dedicated to those regions.

Also in 2002, Excelergy completed a comprehensive re-branding program aimed at more closely matching Excelergy product brands with the innovative solutions and functionality they provide to the company's growing number of global clients:

-- The Excelergy Wholesale Series(TM)--which includes Excelergy

Trader BackOffice, Excelergy MarketRunner, Excelergy

Trading(TM) and Excelergy Transaction Auditor(TM)--enables

companies to achieve straight-through processing of key

wholesale business processes from generation and trade capture

through scheduling and settlement.

-- The Excelergy Retail Series(TM)--which includes Excelergy

Revenue Manager, Excelergy BusinessRunner, Excelergy Customer

Value Analyzer and Excelergy Energy Supply

Optimizer(TM)--manages the forecasting, billing, customer and

revenue cycles for energy/utility companies operating in

restructuring and competitive markets worldwide.

About Excelergy(R) Corporation

Excelergy is a world leader in high performance software platforms that automate six mission-critical business processes--forecasting, trading, scheduling, billing, settlement and customer/partner acquisition and care--in the energy/utility industry and other restructuring value chains. Excelergy's highly flexible, scalable software systems are based on an open, object-oriented, Web-based, native XML technology architecture. Winner of both the Red Herring 100 and UPSIDE Hot 100 awards for the world's top private companies, Excelergy has its North American headquarters in Lexington, Massachusetts, its European headquarters in London, England and its Asia-Pacific headquarters in Melbourne, Australia. More information is available at www.excelergy.com.