UtiliCom Networks and Clay Electric Cooperative create groundbreaking telecommunications partnership

Business Wire, Jan 23, 1997

KEYSTONE HEIGHTS, Fla.--(BUSINESS WIRE)--Jan. 23, 1997--

Creative venture focuses on the needs of the customer

Clay Electric Cooperative, Inc. of Keystone Heights and UtiliCom Networks, Inc. of Foxboro, Mass. today announced a joint venture that will market telecommunications services locally within Clay Electric's service territory.

Those services will include local and long-distance telephone, cable TV, high speed Internet connectivity, advanced energy management and utility automation services. The venture is structured as a limited partnership with UtiliCom Networks as the operating general partner. The joint venture will design, construct, finance and operate a broadband network serving Clay Electric's customers.

The joint venture has begun the initial process of network design and service offering planning for the area. Strategic partnering for products and services is being finalized in order to quickly offer competitively priced existing and new services by Summer 1997. The venture will have a strong local presence, creating many local employment opportunities.

"We are excited about the opportunity to offer advanced communication services to our customers," said Bill Phillips, general manager of Clay Electric. "By providing additional value to our electric service with communications technologies, our customers stand to gain significantly with continued low prices, higher quality and brand new service capabilities as a direct result of this venture."

"We realize that we have an obligation to our customers to evaluate opportunities that might benefit them as well as their cooperative," Phillips said.

"We live in an era of rapid changes in technology, and major changes are on the horizon for the electric power industry. The old ways of doing business won't work any longer in a more competitive environment. Our joint venture with UtiliCom will help us remain competitive and in a position to be the utility of choice for our customers today and in the future," Phillips added.

By combining the creativity and leadership of UtiliCom Networks and its strategic partners with the strength and reliability of Clay Electric, the customer benefits with the offering of competitive existing communications services along with new products such as enhanced cable TV, high-speed Internet connections and many at-home service offerings.

UtiliCom Networks President of Joint Venture Operations Bruce Clark said: "This partnership is not just between Clay Electric and UtiliCom, but also with the community and its citizens. UtiliCom is dedicated to offering low-cost, high value communications services that are not presently available in the area and that strongly focus on the needs of the customer."

"As competition for the customer grows in both the telecommunications and electric industries, the ability for the customer to receive multiple services from one provider helps keep customers loyal and coming back for more services. We intend to listen to those customers and to bring them the best cost products that meet their needs."

UtiliCom Networks Inc. specializes in strategic partnering with electric utilities to finance, design, construct and operate full-service, interactive networks marketing voice, video and data services and products in suburban and rural markets. By providing a suite of commercial and residential services, UtiliCom's networks can be rapidly deployed throughout an entire market. The financing of the networks is being sourced and arranged by BTM Financial Services, Inc., a subsidiary of Bank of Tokyo, Mitsubishi, the world's largest bank with total assets of more than $900 billion.

Clay Electric serves around 120,000 customers in 14 northern Florida counties. The co-op was chartered in 1937. Clay Electric has approximately 10,000 miles of transmission and distribution lines, and 435 employees.

CONTACT: Clay Electric Cooperative Inc.

Public Relations Department

(352) 473-8000

or

For UtiliCom Networks:

Lynn Kettleson

Clarke & Co. Public Relations

(617) 536-3003