Excelergy Trader BackOffice Wins Premium Product Award from Power & Gas Marketing Magazine.

Business/Technology Editors

HOUSTON & LEXINGTON, Mass.--(BUSINESS WIRE)--June 19, 2002

Software platform automates energy scheduling, settlement and market communications to accelerate revenues, improve cash flows, reduce costs

Excelergy Trader BackOffice(TM), a highly scalable software platform that automates the scheduling, settlement and collaborative communications necessary to facilitate trading in high-volume, real-time physical energy markets, has won Power & Gas Marketing Magazine's "Premium Product Award." The award announcement and accompanying product feature article appear in the magazine's recently published May/June 2002 issue. Print and electronic copies of the feature article and product brochure are available through Excelergy's Kellee McGolpin at +1.781.372.5133 or [e-mail].

"The back office is now top priority for companies seeking to maximize profits while asserting management controls over trading operations, so we're pleased our Trader BackOffice product earned this recognition from such a highly regarded publication," said Bill Mahoney, president and chief executive officer of Excelergy Corporation. "Excelergy Trader BackOffice is the only product currently available that combines powerful scheduling and settlement functionality with real-time connectivity to market operators and participants. In addition to accelerating revenue growth and cash flows, Trader BackOffice features a configurable, open-object technology architecture that enables rapid deployments, easy integrations with other systems and dramatically reduced cost of ownership."

American Electric Power (AEP), the United States' leading power trader and generator, is currently using all components of Excelergy Trader BackOffice to manage the company's back-office scheduling and settlement processes in multiple wholesale power markets. AEP also is using Trader BackOffice's embedded collaboration engine to interface with major independent system operators (ISOs) and regional transmission organizations (RTOs) around the nation. In 2001, AEP reported $568 million in profits from power sales of 614 million megawatt hours.

"Energy trading markets in recent years were dominated by financial trades, where software vendors didn't have to concern themselves with high scalability and flexibility required to manage the physical flow of energy," added Mahoney. "Now, the industry is shifting decisively toward physical trading. Existing software products geared to financial trades are proving they can't handle the physical scheduling volumes and demands of today's physical markets. These products offer very weak settlement and dispute resolution capabilities, which can result in thousands or even millions of dollars left on the table at any given time. They also force a trader to maintain a separate software installation for each market connection, which can be prohibitively costly in terms of support and maintenance. Only Excelergy Trader BackOffice fulfills the market need for a single integrated platform that enables straight-through processing for all of today's physical trading, scheduling, billing and settlement requirements."

Trader BackOffice's automation of physical scheduling, settlement and communications processes eliminates mistakes and inefficiencies associated with manual spreadsheet-based management of even the most complex trading deals. It minimizes missed scheduling opportunities and under- or over-scheduling errors, reduces settlement disputes, speeds dispute resolution and settlement, and ensures efficient communications with market operators and market partners alike. Excelergy's open, object-oriented, native XML technology platform allows easy integration with in-house or third-party trading, risk or accounting systems.

About Excelergy

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 markets. Excelergy's highly flexible, scalable software platforms are based on an open, object-based, 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, with its European headquarters in Bristol, England and its Asia-Pacific operations based in Melbourne, Australia. More information is available at www.excelergy.com.