Stonewater Powers the Business Energy Coalition's Conservation Project in San Francisco

Evanston, IL — June 20, 2005 — Stonewater Control Systems is providing the device network platform to support an innovative program in San Francisco this summer that will give large power customers the opportunity to participate in a cooperative to reduce peak demand by a goal of at least 10 megawatts. The idea behind the program is that energy users can face real constraints participating in conventional demand response programs but are able to make significant contributions by working together.

The Business Energy Coalition is a cooperative partnership between Pacific Gas & Electric Company and major San Francisco businesses, facilitated by The Energy Coalition, located in Irvine, California. Businesses in the coalition are mainly downtown office buildings, as well as facilities such as hospitals, that will be compensated if they meet a pledge to reduce usage by a determined energy amount.

Using Stonewater's web-based Network Operating Center, members get a near real-time, web-based view of their own and the entire cooperative's electric consumption. The Energy Coalition also selected Stonewater's system to provide instant communication and feedback among coalition members.

The program received $2.5 million in funding from the California Public Utilities Commission. In addition to reducing load on power plants during times of high electricity demand, the program aims to protect the transmission and distribution infrastructure.

"We have always maintained that real-time energy information enables actionable strategies to save energy. The adoption of our system by The Energy Coalition is an exciting development in making demand response a reality," said Randolph Nogel, Stonewater's CEO.

The Energy Coalition is a non-profit organization that has been in operation since 1981. The oldest energy cooperative in the United States, The Energy Coalition is dedicated to raising awareness among consumers, businesses and municipalities about smart energy management strategies for a healthy energy future. For more information, please visit http://www.energycoalition.org.

About Stonewater Control Systems

Stonewater Control Systems, a privately held technology company located in Evanston, Illinois, provides Internet-based remote communication and control platforms that plug in to monitor, analyze, and control machines and sensors. For further information about Stonewater's technology and licensing opportunities, please visit http://www.stonewatercontrols.com.

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