UTILX Announces Multi-Million Dollar Contract with Potomac Electric Power Company

Business Wire, June 28, 2000

Business Editors, Energy Writers

KENT, Wash.--(BUSINESS WIRE)--June 28, 2000

UTILX Corporation (Nasdaq:UTLX) announced today that the Company signed a $2.0 million dollar contract with Potomac Electric Power Company ("PEPCO") to provide CableCURE(R) injection and FlowMOLE(R) replacement services for PEPCO's reliability program.

The initial contract runs through December 31, 2001.

"This turnkey contract allows PEPCO to take advantage of UTILX's unique "Test, Treat or Replace" program which provides a proactive approach to managing underground power distribution system reliability," said William M. Weisfield, President and CEO of UTILX. "PEPCO was instrumental in petitioning the Federal Energy Regulatory Commission ("FERC") to revise its prior ruling concerning the accounting treatment of CableCURE. In January, FERC allowed investor owned utilities to capitalize the costs of CableCURE and amortize them over the remaining life of the cable. The CableCURE treatment process now benefits from the same accounting treatment as the replacement of failed cable. CableCURE is a great value at about half the cost of replacement and includes a twenty year unconditional money back warranty. Since the ruling, more and more companies are investigating CableCURE to solve their delivery reliability problems."

UTILX Corporation provides critical services for the installation and rejuvenation of aging underground power distribution infrastructure with its FlowMOLE service and proprietary CableCURE solution in the U.S. and Canada through a network of regional sales and service centers. The Company also provides CableCURE services throughout Europe and Asia.

This release contains forward-looking statements relating to the Company's existing and future products and services and future operating results that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe", "expect", "intend", "plan", variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Please refer to the Company's latest Annual Report on Form 10-K filed with the SEC for a more detailed description of risk factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.