IBM And The New Power Company Form Services Pact Valued At Up to $1.5 Billion

IBM to Provide Web Hosting, Back-Office, and Systems Integration Services

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SOMERS, N.Y - 16 May 2000: -- The New Power Company, a new energy services company launched today by Enron Corporation and other strategic investors, has signed a ten-year services agreement worth up to $1.5 billion.

The New Power Company, the first nationwide provider of energy to the residential and small commercial customer in deregulated U.S markets, has selected IBM Global Services to build, staff, and run core components of its back office functions.

H. Eugene Lockhart, The New Power Company's president and chief executive officer, said: "As the world leader in e-business and I/T services, IBM is uniquely equipped to help The New Power Company deliver the best value to our customers by establishing a back-office infrastructure that will be second to none."

IBM will Web-enable The New Power Company's back-office infrastructure, and host its Web site from IBM's Southbury, Connecticut e-business hosting center. The company's billing and revenue management functions will also be managed at the Southbury facility. To support The New Power Company's aggressive marketing plans, IBM will also establish a facility in Charlotte, North Carolina. IBM will draw upon its proven e-business capabilities - battle-tested through the company's work on ibm.com - to build a state-of-the art solution for the company. In addition, IBM will build a Web site where consumers can sign up for The New Power Company's services.

"This is a unique opportunity to build a world-class back office infrastructure to support The New Power Company's first mover strategy," said Doug Elix, IBM senior vice president and group executive, IBM Global Services. "We look forward to deploying the skills and technologies the company needs as it begins offering its commodity and non-commodity services to consumers in deregulated energy markets around the U.S."

To help The New Power Company rapidly create a state-of-the-art technology infrastructure, IBM is providing the company with systems integration services and numerous IBM hardware and software products, including desktop PCs, RS/6000 Web servers and Lotus Notes.

The company will also be using the IBM VeriTRAN Clearinghouse service nationwide. VeriTRAN is an Internet-based service created to meet the needs of energy companies doing business in a deregulated environment. Using a transaction engine developed by ExoLink Corporation, VeriTRAN helps improve efficiency and customer service by providing a secure, cost-effective environment in which organizations like The New Power Company can communicate with other energy providers, meter services providers, billers, and local distribution companies.

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