GPU Reports First Quarter Earnings; Reviews Progress in Improving Shareholder Value.

Business Editors

MORRISTOWN, N.J.--(BUSINESS WIRE)--April 27, 2000

GPU, Inc. (NYSE: GPU) today reported net income for the first quarter of 2000 of $131.0 million or $1.08 per share, against $162.9 million or $1.27 per share in the first quarter of 1999, before a non-recurring gain.

The first quarter 1999 results were before a non-recurring gain of $27.8 million or $0.22 per share on the sale of GPU's interest in the Homer City Generating Station. Net income for the 1999 first quarter, including the gain, was $190.7 million or $1.49 per share.

The 2000 first quarter earnings were lower than last year, as anticipated, primarily due to the impact of electric utility restructuring in New Jersey and Pennsylvania, which has included GPU's sale of its generation facilities, lower electricity sales due to more Pennsylvania customers buying their energy requirements from other suppliers, and lower electric delivery rates charged to customers in New Jersey.

"GPU moved ahead aggressively during the quarter with our programs to improve shareholder value," said Fred D. Hafer, chairman, president and chief executive officer of GPU. He noted that during the first quarter, GPU:

   -- Appointed Michael J. Chesser, former president of Atlantic
      Energy and CEO of Itron, a provider of automated meter reading
      solutions, as president and chief executive officer of GPU
      Energy.

   -- Made progress with its programs to reduce operating costs by $100
      million during 2000 and 2001 and continued with its targeted
      investments of $40 to $50 million to improve the reliability of
      its domestic electric network.

   -- Moved ahead with its acquisition of MYR Group, a suburban
      Chicago-based utility infrastructure construction company, for
      $215 million. MYR, the nation's fifth largest specialty
      construction company, complements GPU's utility services business
      and provides a platform for building its non-regulated
      activities.

   -- In partnership with five energy and telecommunications
      companies, created America's Fiber Network, a new super-regional,
      high-speed fiber optics company connecting major markets in the
      eastern United States to secondary markets with a growing need
      for broadband access.

   -- In a second telecom venture, partnered with Telergy, Inc. to
      form Telergy Mid-Atlantic, which will offer telecommunications
      services and ultimately electricity throughout New Jersey and
      Pennsylvania.

      GPU, Inc. (NYSE: GPU), headquartered in Morristown, NJ, is a
registered public utility holding company providing utility and
utility-related services to customers throughout the world. GPU serves
4.6 million customers directly through its electric companies -- GPU
Energy in the US, Midlands Electricity plc in the UK, and Emdersa in
Argentina. It serves another 1.4 million customers indirectly through
its electric and gas transmission subsidiaries PowerNet and GasNet in
Australia. The company's independent power project business units own
interests in and operate 22 projects in 7 countries and the US. GPU's
1999 revenues were $4.8 billion and its total assets were $21.7
billion. GPU's other subsidiaries include GPU Advanced Resources,
Inc., GPU International, Inc., GPU Nuclear, Inc., GPU Service, Inc.
and GPU Telcom Services, Inc. (http://www.gpu.com)


PLEASE NOTE:

--   Members of the news media and the public are invited to
     listen to GPU's conference call with the investment community at
     10 a.m. today, Thursday, April 27, by dialing 973 321-2002.
     Callers dialing this number will be in a "listen only" mode.
     Please call in no later than 9:55 to assure being transferred
     into the call by 10 a.m.

--   A playback of the conference call will be available beginning
     at 12 noon today through noon tomorrow, April 28, at
     402-220-1950.

--   This first quarter earnings news release and supplemental
     financial data, which will be discussed on today's conference
     call, are available at the GPU website, (http://www.gpu.com)
     under the Investor Information section.


  GPU, Inc. Financial Summary for Periods Ended March 31, 2000 & 1999

Three Months Ended March 31, (Unaudited)      2000             1999
----------------------------------------      ----              ----


Operating revenues (000)  (Note 1)        $1,464,532       $1,068,703

Net income (000)  (Note 2)                 $ 130,998         $190,719

Basic - Earnings per share  (Note 2)        $   1.08          $  1.49
      - Average common shares
         outstanding (000)                   121,367          127,652

Diluted  - Earnings per share  (Note 2)     $   1.08         $   1.49
         - Average common shares
             outstanding (000)               121,426          127,926


Twelve Months Ended March 31, (Unaudited)      2000              1999
-----------------------------------------      ----              ----


Operating revenues (000)  (Note 1)         $5,152,952      $4,274,386

Net income (000)  (Notes 3 & 4)             $ 399,293       $ 417,065

Basic - Earnings per share  (Notes 3 & 4)     $  3.25        $   3.25
      - Average common shares
         outstanding (000)                    123,813         127,865

Diluted - Earnings per share  (Notes 3 & 4)  $   3.25        $   3.25
        - Average common shares
          outstanding (000)                   123,961         128,083


Note       1: Operating revenues for the three and twelve months ended
           March 31, 2000 increased due to the inclusion of: Midlands
           Electricity plc (the remaining 50% which GPU did not
           already own); Empresa Distribuidora Electrica Regional,
           S.A.; and GPU GasNet, all of which were acquired in 1999.
           Partially offsetting the increase, for both periods, were
           lower operating revenues at GPU Energy primarily due to the
           impact of electric utility restructuring.

Note 2:    Earnings for the three months ended March 31, 1999
           include an after-tax increase of $27.8 million, or $0.22
           per share, for the gain on the sale of Penelec's Homer City
           Station, related to wholesale operations.

Note 3:    Earnings for the twelve months ended March 31, 2000
           include an after-tax increase of $8.3 million, or $0.07 per
           share, for the net gains on the sales of substantially all
           GPU Energy's generating assets (excluding Homer City, which
           was sold in the first quarter of 1999), related to
           wholesale operations; an after-tax gain on the sale of the
           Midlands supply business of $6.8 million, or $0.05 per
           share; and an after-tax charge of $68 million, or $0.54 per
           share, as a result of the NJBPU's Restructuring Order on
           JCP&L.

Note 4:    Earnings for the twelve months ended March 31, 1999
           include an after-tax reduction of $65.8 million, or $0.52
           per share, for the net impact of the PaPUC Restructuring
           Orders on Met-Ed and Penelec. Partially offsetting this was
           an after-tax gain of $27.8 million, or $0.22 per share, on
           the sale of Penelec's Homer City Station, related to
           wholesale operations.