For nearly 100 years our nation's electricity has been produced and delivered through entrenched monopoly franchises. In the past few years, the $300 billion U.S. retail energy market has been tipped on its head through a series of severe shortages and obstacles of the deregulation process. We are now in the midst of one of the most disruptive market transformations in the past century.

Deregulation that was intended to invite competition to the market has incited a revolution of immense proportions. The electricity revolution has given birth to a fundamental paradigm shift in the market that will have lasting and profound implications for electricity service delivery.

The New World Power Corporation fills a void that is building in this market. Organized in June 1989 for the purpose of developing, owning and operating renewable power projects and manufacturing related renewable power equipment, New World Power Corporation became one of the first successful distributed power companies in the country. Hydro-Electric power, modular power, solar and wind power were distributed power markets in which New World Power became a market leader. The company would generate energy through its assets placed in these markets, and sell the output to local utility companies. The solar division of New World ultimately became one of the largest and most successful packagers and distributors of solar systems in the industry.

In 2001, the Company’s business plan began to be adversely affected by changes in the electric power business. Due to the deregulation process that had begun on a state-by-state level in 1998, many large electric utilities began to diversify into acquisitions overseas, energy trading and the ownership of unregulated generating facilities. The great majority of these initiatives were failures, driving up the utilities’ debt, write-offs, and ultimately, costs to their customers. To compensate, these utilities began to attempt to cancel or renegotiate power purchase agreements with their suppliers, including New World. In 2002, New World decided to exit the business of selling power and energy to intermediary electric utilities and move toward the business of selling power and energy directly to end-use commercial and industrial customers. The Following announcement was recently released:

NEW WORLD POWER ANNOUNCES
MERGER WITH USI, NEW BUSINESS PLAN AND NEW CEO

For Immediate Release
San Juan Capistrano, California— The New World Power Corporation (OTC Bulletin Board, symbol “NWPC”), an independent power producer, announced today that it has acquired for common stock Utility Solutions Inc.(“USI”) as part of its strategic plan to become a leading provider of on-site energy for Commercial and Industrial end users. Brad Dotson, formerly the owner of USI, has been named President and CEO of New World.

Historically, New World developed and owned central station power plants. More recently, New World begun to pursue distributed generation (“DG”) power projects on a limited basis, although the output from these projects was sold back to the local electric utility. In the future, New World intends to focus solely on selling their output to on-site Customers.

Brad Dotson, President and CEO of New World, says “The electric power industry is undergoing major changes that are reshaping the traditional roles of electric utilities, and causing customers to seek alternatives like DG.” Electric power system capacity requirements are presenting regulators and policymakers nationwide with serious challenges. The United States’ Department of Energy (the “DOE”) forecasts explosive growth in DG, leading NWPC to conclude that DG may account for as much as 20% of all new domestic power generation capacity additions in the future. According to Dotson, “With the success of DG, the power grid of our nation will begin to look more like the Internet than a mainframe.”

New World is engaged in the ownership and operation of electric generation projects. In particular, New World focuses on “distributed generation”, or “DG”. DG is the generation of electricity from small “micro-sized” generating facilities located at the point of consumption, that is, “on-site”, at the location of the electric customer. New World intends to rapidly deploy and expand its fleet of DG projects, and in the process become the brand name supplier of DG solutions.

See our January 28, 2003 Press Release in PDF format.