Hostmark Hospitality Group Selects Electric City to Install EnergySaver Systems Across Leading Hotel Chain

It is anticipated that Electric City may also provide upgrades to electrical switchgear and power monitoring systems at several of the hotels included in the program. "We have been developing a new line of primary power switching and monitoring systems for critical applications like hotels," stated John Mitola, CEO of Electric City. "Deregulation has generated concern over the ability of traditional utilities to provide historic levels of reliability due to new, market-based price/cost constraints. Obviously, hotels can't afford to suffer any form of power reliability problems. Our new line of power switching and monitoring systems will provide our customers with a level of control/monitoring over their power supply which they have not enjoyed previously. Following our initial applications with customers like Hostmark, we intend to launch a full-scale product rollout of this new line."

The Hostmark agreement represents yet another important step for Electric City during 2000. The Company expects to immediately begin implementation of this program to specific Hostmark hotel properties across North America. The agreement designed for Hostmark is being used as a model with other large-scale customers, both current and prospective. "These kinds of agreements will help us build our sales backlog as well as provide a foundation for revenue growth over the next few years," added Kawamura.

Electric City is a leading developer, manufacturer and integrator of energy savings technologies and custom electrical switchgear. The Company currently markets the EnergySaver(TM), the SystemCommander and custom switchgear. Electric City is based in Elk Grove Village, Illinois and is traded under the symbol ECCC. Additional information is available by visiting its website at or by contacting investor relations at The StockPage at 1.800.797.5683.

This news release includes certain forward-looking statements that reflect Electric City's current expectations about its future results, performance, prospects and opportunities. Electric City has tried to identify these forward-looking statements by using words such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates", "should" or similar expressions. These forward-looking statements are based on information currently available to Electric City and are subject to a number of risks, uncertainties and other factors that could cause Electric City's actual results, performance, prospects or opportunities in the remainder of 2000 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the actual revenue generated over time by the Hostmark letter agreement as well as the prospects for the Company's new line of primary power switching and monitoring systems. For further information about these and other risks, uncertainties and factors, please review the disclosure included under the caption "Risk Factors" in Electric City's filings with the Securities and Exchange Commission. Except as required by the federal securities laws, Electric City undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this news release.