GPU Announces No Sale for Oyster Creek.

MORRISTOWN, N.J.--(BUSINESS WIRE)--July 8, 1998--GPU, Inc. announced today that it had identified no buyer for the Oyster Creek Nuclear Generating Station but discussions are continuing for the potential sale of Three Mile Island (TMI). A final decision on the future of Oyster Creek will be made sometime after the New Jersey Board of Public Utilities (BPU) makes a decision on GPU's restructuring filing.

GPU now has two options for Oyster Creek -- retire early or continue to operate the plant until its license expires in 2009. GPU plans to reemphasize to the BPU that the early retirement of the plant in the fall of 2000 is in the best economic interest of its customers because of the plant's cost characteristics. If, however, in the proceedings, the BPU takes a different view of the plant's economics and the State's energy needs, GPU will review the situation and decide upon the plant's future. The company will not take any action that would preclude the plant's continuing tooperate until 2009. Pending resolution of the BPU proceedings, GPU will begin deferring work at Oyster Creek that is not required to support safe operation of the plant through the fall, 2000

"We made a serious and extensive effort to sell the plant," said Fred D. Hafer, president and chief executive officer of GPU, Inc. "However, in the end, we were unable to finalize a deal with the one potential buyer who expressed an interest."

GPU, Inc. announced in April, 1997 that in addition to the continued operation of Oyster Creek, it was exploring the options of either the sale or the early retirement of the plant to mitigate costs associated with its continued operation. In May, 1997, GPU said that it would be willing to entertain the possibility of selling the Three Mile Island Nuclear Generating Station as well. The company had announced that it had been in active discussions with a potential buyer for both of the plants. Due to a confidentiality agreement between the parties, the identity of the potential buyer of TMI cannot be made known at this time.

GPU, Inc.'s efforts to sell the two nuclear plants are part of its overall strategy to exit the generation side of the electric utility business. The company is in the process of divesting its non-nuclear generation assets as well.

"We have made a decision to focus on the business of delivering power to customers -- an area where we believe we can be very successful," Hafer said.

T. Gary Broughton, president and chief executive officer of GPU Nuclear, the GPU subsidiary that operates Oyster Creek, said, "The employees at Oyster Creek have consistently maintained high levels of safety while making tremendous strides in driving down operating costs. We will remain committed to the safe and efficient operation of the plant."

"Certain work that would be done at a plant with a longer operating life is not necessary at a plant that may be shut down early," said Broughton. The deferred work would include planning for a refueling outage in the fall, 2000 and certain modifications, inspections and testing not required to support safe operation of the plant through the fall, 2000.

Broughton said that he is committed to maintaining adequate staffing levels at the plant. The company's previously announced employee retention program is being implemented for non-bargaining unit employees. The company reserves the option of withdrawing the retention program if it is decided to continue operating Oyster Creek beyond the fall of 2000. "We will be meeting as quickly as possible with the bargaining unit leadership to discuss implementation of the bargaining unit retention program," said Broughton.

GPU Nuclear will now step up its efforts to be ready for decommissioning of the plant. Decommissioning at Oyster Creek will be accomplished by the "prompt removal/dismantlement method," which means that the process will begin immediately after the plant is retired. This option is more cost-effective than placing the plant in monitored storage and other options that delay the start of the process. Decommissioning is expected to last several years, at a projected cost of approximately $400 million. GPU Nuclear is committed to utilizing as many in-house employees as possible in the decommissioning.

GPU, Inc., an electric utility holding company, recorded operating revenues of $4.1 billion in 1997.

Oyster Creek is owned by the Jersey Central Power and Light Company (JCP&L), doing business as GPU Energy. GPU Energy is the trade name for the three operating utility subsidiaries of GPU -- Metropolitan Edison and Pennsylvania Electric, in addition to JCP&L -- which provide customer service, transmission and distribution services to nearly 2 million customers in Pennsylvania and New Jersey.

The GPU International Group has ownership and interests in electricity distribution and supply business in England and Australia and generating facilities in six foreign countries.

The generation operations of GPU are conducted by GPU Generation, Inc. and GPU Nuclear. Corporate functions are performed by GPU Service.

   CONTACT:  GPU, Inc.
              Jeff Dennard
              973-455-8333