GPU, Inc. Chairman Delivers Good News on Growth Strategy; Shareholders Convene for 53rd Annual Meeting.

MORRISTOWN, NJ--(BUSINESS WIRE)--May 6, 1999--

GPU, Inc. (NYSE:GPU) Chairman, President and Chief Executive Officer Fred D. Hafer today told shareholders at their annual meeting that while many in the industry are taking a wait-and-see attitude towards deregulation, GPU heard the wake up call and took decisive steps to position the Company to appropriately reflect the coming changes.

"We continue to advance our Company's growth strategy into a global premier utility services company," said Hafer. "Additionally, I am pleased to report that even as we respond to the ongoing changes in the industry, we have continued to deliver on our commitment to maximize shareholder value through steady dividend increases.

For the five-year period ended December 31, 1998, GPU's total shareholder return was 13.8 percent, significantly higher than the Standard and Poors Electric Group average of 10.6 percent. Over this period GPU has delivered more value to its shareholders than the majority of its industry peers. The Company's earnings per share, adjusted for unusual events such as the U.K. utility tax in 1997 and a restructuring charge in 1998, have grown at an impressive rate of 11 percent per year between 1996 and 1998.

"We have concluded restructuring in Pennsylvania and we are pleased with the settlement. A decision is expected in New Jersey soon and, despite the fact we may lose customers due to restructuring, we expect to deliver strong earnings in 1999 as we start the post restructuring period with reliable earnings power," said Hafer.

The higher earnings and dividends have also gained attention in the financial markets. This year Standard and Poors recognized GPU for its achievements and raised the Company's credit rating.

"We plan to grow our current delivery business geographically through acquisitions, horizontally by acquiring other related delivery businesses and internally by expanding our customer base through the offering of our skills and services to other companies in similar businesses," added Hafer. GPU has already successfully applied existing skill sets to its international investments, each of which has experienced considerable efficiency improvements immediately following acquisition. Its most recent acquisition was Emdersa, an electric utility holding company in Argentina.

GPU's merchant generation divestiture provides the Company with a substantial amount of cash and shifts its focus from the more volatile parts of the new electric industry. Proceeds from the divestiture will be used to reduce debt levels, to continue its stock repurchase plan and to expand through global acquisitions.

In managing the transmission and delivery of electricity, now the core of its utility services, GPU has installed a fully integrated computer system coordinating all parts of its domestic operations. The new system is part of a 'redesign' of utility business processes and will strengthen the Company's ability to manage assets in the most efficient manner while reducing costs. "Our new computer and information system will play a significant role in achieving excellence in customer satisfaction," added Hafer.

This year's annual meeting was held at the F. M. Kirby Shakespeare Theatre at Drew University, in Madison, NJ.

GPU, Inc., headquartered in Morristown, NJ is a registered utility holding company. GPU's three domestic operating utility subsidiaries--Jersey Central Power and Light Company, Metropolitan Edison Company and Pennsylvania Electric Company--do business under the trade name of GPU Energy, and serve approximately two million customers in a service area encompassing about half the land areas of New Jersey and Pennsylvania. GPU's other subsidiaries include: GPU Advanced Resources, Inc.; GPU International, Inc.; GPU Generation, Inc.; GPU Nuclear, Inc.; GPU Service, Inc.; and GPU Telcom Services, Inc. (http://www.gpu.com)