Excelergy Completes Third Consecutive Record Quarter; Revenues, Bookings and Cash Flow Again Reach Record Highs.

Business/Technology Editors

LEXINGTON, Mass.--(BUSINESS WIRE)--July 26, 2001

Excelergy Corporation, provider of the world's most advanced software products and technologies for managing inter-company collaboration in restructuring markets, today reported its third straight quarterly record for revenues, bookings and cash flow. During the quarter ending June 30, Excelergy recorded a robust 20 percent sequential growth rate over the previous quarter and remained on track to approximately double its annual revenues over 2000 levels.

"We are pleased to announce Excelergy has just completed another remarkable, record-setting quarter. Despite challenging market conditions, our company continues to stand out as one of the fastest growing software product and technology providers to the power and utility industry," said Bill Mahoney, Excelergy's president and chief executive officer. "There are several factors behind this: our exceptional delivery of world-class software products and technologies, the deep market knowledge held by the most talented staff in the industry, our unparalleled engineering execution, and our speed in bringing clients to market faster than anyone else."

During Q2 2001, Excelergy signed several new name clients in North America, its first major client in the Asia Pacific region, and closed two major add-on agreements with existing clients First Energy and New West Energy. Excelergy also generated - for the second straight quarter - 250 percent of its quarterly target for repeat business, a key indicator of client satisfaction.

"These results show that Excelergy's software products and technologies are continuing to gain significant traction in the retail, wholesale, transmission and generation segments of the energy/utility vertical," added Mahoney. "Once again, it's a clear validation of the bottom-line benefits Excelergy delivers to our clients: rapid, low-risk implementations of highly scalable products and technologies that lower operating costs and accelerate market entry and penetration."

Excelergy began its record second quarter of 2001 by winning a coveted slot in Red Herring Magazine's annual list of the Top 50 Private Companies. Red Herring's editors selected Excelergy based on market potential, business strategy, management quality and financial performance. This honor was followed swiftly by several new client announcements and implementation successes. Selected highlights of Excelergy's achievements during the second quarter include:

-- Signs first Asia-Pacific client, Powercor Australia. After a global search and evaluation, the largest electricity distribution company in Victoria selects the Excelergy eXACT for Retail Markets software product to automatically manage its collaboration and shared business processes in Australia's second-stage contestable markets. Powercor chose Excelergy's flexible product-based solution to avoid the time, cost and risk associated with unproven, large scale system implementations.

-- Connects American Electric Power to ERCOT. One of the nation's largest energy traders rapidly implements Excelergy eXACT for Wholesale Markets(TM) and becomes fully certified for automated data exchange in ERCOT (market operator for Texas' wholesale energy trading industry). AEP will be using Excelergy eXACT for Wholesale Markets in conjunction with Excelergy eXACT for Energy Trading(TM) to bid, schedule and dispatch 10,000 megawatts of generation in real-time into the ERCOT market.

-- Signs one of most successful and profitable US-based ESPs. One of the most successful and profitable energy service providers in the US is now implementing Excelergy eXACT for Retail Markets and the Excelergy Advanced Business Package in support of its aggressive customer growth targets in competitive US markets. [Name withheld due to client policy]

-- Signs Ontario's Utilities Kingston. Large Ontario supplier of electricity, natural gas, water, sewer and broadband products and services selects Excelergy eXACT for Retail Markets to connect and integrate its existing IT system with Ontario's retail transaction hub, EBT Express. Excelergy's partner, IBM Canada, plays a key role in the selection and implementation processes.

-- Achieves operational status at Pepco Energy Services with the Excelergy Advanced Business Package. Implemented with the support of one of its established outsourced services partners, Excelergy's product forms the core of a quick replacement for Pepco Energy Services' previous outsourced solution. Operational status was achieved within nine weeks, enabling the client to quickly pursue its aggressive growth objectives in restructuring energy markets in the mid-Atlantic region.

-- Rapidly completes first European implementation within twelve weeks. Excelergy completes rapid, successful implementation at ANY-G, an affiliate of the large Netherlands utility REMU, becoming operational with the Excelergy Advanced Business Package just twelve weeks after ANY-G licensed the software earlier this year.

-- Implements Excelergy eXACT at Toronto Hydro-Electric Systems Limited. North America's second largest municipal utility installs Excelergy eXACT for Retail Markets to manage inter-company collaboration within Ontario's competitive energy market, scheduled to open to competition in Spring 2002.

-- Implements Excelergy eXACT at London Hydro Inc. In another close partnership with IBM Canada, Ontario's London Hydro selects Excelergy eXACT for Retail Markets to manage its critical trading partner relationships while accelerating its market growth.

About Excelergy

Excelergy delivers the world's most advanced software products and technologies for inter-company collaboration between businesses operating in restructuring markets, such as the global energy and utility industry. Excelergy's unique suite of object-based, XML-enabled products includes Excelergy eXACT for automating collaboration among businesses and Excelergy Advanced Business Package for managing multiple revenue streams from complex business units. Excelergy's North American headquarters are located in Lexington, MA, with its European headquarters located in Bristol, England. More information is available at www.excelergy.com.