Excelergy Opens 2001 With Record Quarter; Company Signs Four New Domestic and International Clients, Books 268% of Repeat Business Target With Existing Clients.

Business/Energy Editors

LEXINGTON, Mass.--(BUSINESS WIRE)--April 19, 2001

Excelergy Corporation, provider of the world's most advanced software products and technologies for inter-company collaboration, today reported its most successful quarter in its three-year history. During the first three months of 2001, Excelergy signed four new clients in North America and Europe and closed several major add-on agreements with existing clients, generating over two and one-half times its Q1 target for repeat business.

"Our revenues, bookings and cash flow are at our highest levels ever, and we've held our operating costs to levels slightly below our projections. Due to our outstanding delivery and collections, we are in a very strong cash-on-hand position," said Bill Mahoney, Excelergy's president and chief executive officer. "These results position us among the world's fastest growing providers of software technologies to the power and utilities industry. With the agreements we're in the process of closing in the second quarter, plus the contents of our sales and services pipeline for Q3 and Q4, the future of Excelergy has never been brighter."

The new client agreements capped a quarter that saw revenues increase more than 50 percent over the previous quarter, which had set the prior record. Q1 revenues in both new and repeat business topped projected goals in all market segments, including the wholesale, transmission and supply sectors in the energy and utility industry.

"These growth numbers prove that the business benefits Excelergy offers - reduced business costs, increased operating efficiency, enhanced speed to market, and lower business risk - are being embraced by our clients and prospects in all of our target markets," added Mahoney. "We're growing because we're enabling current and emerging market players to grow their own businesses."

Selected highlights of Excelergy's achievements and announcements during the first quarter include:

-- Signs first agreement in wholesale energy sector with the second largest energy trader, American Electric Power. Excelergy teams with AEP to begin deploying Excelergy eXACT for Energy Trading(TM) to support AEP's global energy trading and marketing business. The agreement marks Excelergy's expansion into the wholesale energy software market. AEP says Excelergy eXACT for Energy Trading was best designed to handle the scale and complexity of AEP's growing wholesale electricity business.

-- Announces major new client in Sempra Energy Solutions. SES chooses Excelergy eXACT(TM) and the Excelergy Advanced Business Package(TM) to expand quickly into newly restructuring energy markets worldwide. After an exhaustive search, SES opts for Excelergy's software products because they will accelerate SES's business growth more quickly, cost-efficiently, and at lower risk than competing products.

-- Signs first United Kingdom customer. Maverick Energy Limited selects the Excelergy Advanced Business Package to solve complex inter-company collaboration problems - such as faulty data transfer - plaguing the UK market. Maverick Energy says Excelergy's offering, which "blew the competition away," will allow it to expand its customer base by providing superior customer service - while at the same time reducing costs, increasing efficiency, and minimizing business risk.

-- Announces first continental European client. The affiliate of Holland's fourth-largest power company, REMU, selects the Excelergy Advanced Business Package in preparation for the opening of that country's electricity market to competition scheduled for later this year. The company says, "Excelergy offers the restructuring energy industry's most advanced system...Our implementation already is proceeding very smoothly."

-- Signs new agreement with Salt River Project affiliate New West Energy Corporation. New West Energy, a Phoenix, Arizona-based energy service provider, chooses Excelergy eXACT and the Excelergy Advanced Business Package to reduce costs, increase efficiency, and accelerate its new market penetration. New West Energy calls Excelergy's object-based technology the "best in the marketplace."

-- Signs new agreement with major Northwest utility. A utility subsidiary of one of the world's leading electricity, natural gas and communications companies selects Excelergy's software products as it prepares to aggressively expand its customer base once that region's large commercial and industrial power market opens to competition. [For confidentiality reasons, this new agreement has yet to be announced formally.]

-- Makes significant progress in market development in South America and Southeast Asia. In addition to its successful expansion into restructuring European markets, Excelergy is leveraging its major systems integration partners, such as Cap Gemini Ernst & Young and PricewaterhouseCoopers, to close in on targeted opportunities in other overseas markets.

-- Closes mezzanine round of equity funding. Venture Capital firms Hummer Winblad Venture Partners and Sigma Partners lead a mezzanine round of $15 million of new equity investments in Excelergy. Excelergy's investors have now provided a total of $63 million to date.

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(TM) for automating collaboration and care among businesses and Excelergy Advanced Business Package(TM) for managing complex business units producing multiple revenue streams. 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.