Mar 26, 2002

PEMBROKE, Mass.-- Energy Services Group (ESG), the leading provider of transaction processing services to the energy industry, reported today it achieved several significant milestones in the first quarter of the 2002. The strong growth for the Massachusetts based company follows an impressive year of growth in 2001, when ESG added a quarter of the ERCOT market participants to its clientele, grew revenue by over 100% and added several prominent companies to its network of trading partners.

Despite the downturn of the economy and the high profile collapse of Enron, one of the company's clients, ESG was able to make significant progress in several areas, including:

• Completion of Market Testing and Certification for all of its clients operating in ERCOT. All ERCOT clients went into production status on schedule and under budget, with 275 business rules being applied to their data and business processes.
  
  
• Was a leader in the development of EDI transaction standards in use in the competitive natural gas and electric markets through the New York ESCO EDI Collaborative.
  
  
• Completed Testing and Certification of multiple clients operating in New York, including the first distribution company certified in the state.
  
  
• Released the latest version of the Company's flagship software product, the ESG Market Portal(™), which provides comprehensive trading partner, transaction and business process management, as well as reporting, for all deregulated energy markets.
  
  
• Significantly expanded into natural gas markets with support for Northeast, Mid Atlantic, Midwest and California data exchange protocols.
  
  
• Strengthened financial results with continued profitability on a net operating basis, remaining the only profitable, independent and non-venture backed EDI provider operating in competitive markets across the country.
  
  
• Launched eTSP, an outsourced billing and transaction management service FOR COMMERCIAL AND INDUSTRIAL SUPPLIERS.
  
  
• Currently testing and certifying clients with 30 trading partners in 10 states.
  
  
• Established strategic partnerships with software vendors and consulting firms, and integrated with numerous major CIS/Billing/CRM systems.
  
  

"2002 has started out in a very positive manner. We have the best people in the industry working for this company and they are delivering results. We are expanding capabilities across the organization; we support more energy markets and their operating rules, growing volumes of end use energy accounts, and connectivity to more energy industry trading partners than any other EDI services company in the country. Furthermore, we have continued to enhance our services for energy marketers, distribution companies and ancillary service providers," said Nate Owen, ESG's president and chief executive officer. "Most importantly, the ESG team continues to improve on the value that we provide to our customers."

ESG recently closed on several major new clients and projects, including the 4 largest retailers in the Northeast, a Midwest distribution company, an international energy marketer, several utility affiliates, a large Texas retailer, and several major energy marketers operating in Michigan. "From California to Long Island and Maine to Texas, ESG is the leading national player in the EDI space, with production volumes in every competitive region of the country, with distribution companies and suppliers, and with support for both gas and electricity. When distribution companies and energy marketers look to operate in competitive energy markets, more and more they look to ESG to help them with EDI, electronic billing and transaction management," said Owen.