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Peace Software
www.peace.com

ATLANTA, GA., July 20, 1999 - Peace Software International today announced that BC Gas Inc., a leading provider of energy and utility services in Western Canada and the U.S. Pacific Northwest, has selected the Peace Energy CIS^TM system to provide interactive web-based customer information services for approximately 750,000 utility consumers throughout British Columbia, Canada.

BC Gas undertook a pilot project in Prince George using Peace's Energy product, and upon its successful completion selected Energy as its solution for the entire customer base. BC Gas will first roll out Peace's Energy CIS to Customers based in the interior of the province during 1999 and 2000, with plans to service metropolitan Vancouver in the Year 2001. The British Columbia Utilities Commission (BCUC) recently approved C$28.8 million for the deployment of integrated customer care capabilities, of which C$10 million is designated for software and services related to the Peace Energy system.

Peace Software's Energy product is a comprehensive customer management and billing system designed and customized for energy service provider clients, and addressing the needs of the deregulated market. The product enables utility customers to easily access service provider web sites for interactive information about billing, utility usage, inquiries and support.

"The $300 billion energy market is available and all utility customers are contestable because of deregulation, a unique market event," said Donovan Gow, vertical industries, Aberdeen Group. "Servicing utility consumers over the Internet offers better customer service, and is a great alternative for utilities needing to Reduce operating expenses while retaining customers and adding to their customer base in this era of deregulation. The Peace Energy solution is unique in offering consumers the ability to pay bills, check utility usage and make service inquiries, all over the Internet."

In addition, Energy includes all the functions needed for ESPs to Deliver advanced billing services, including Internet customer service, ESP consolidated billing or commodity-only billing, enrollment, and settlements for the deregulated utility market. A unique browser user interface (BUI) built into the product enables customer service representatives to access the system with an easy-to-use interface identical to the web browsing interface to which they are already accustomed, greatly reducing training time.

"Deregulation and the Internet have fundamentally changed our business in that customers expect immediate 24 x 7 web-based service, and we needed complex billing capabilities that could support both residential and commercial industrial customers," said Patrick Lloyd, senior vice president, Business Technologies & Support, BC Gas Utility, Ltd. "We looked at many systems and selected Energy for three key reasons: first, it's the only CIS product developed from the ground up for the deregulated environment, and therefore delivers more value; second, it was designed for the new era of web and Internet applications, and so will be adaptable for our long-term needs; and finally, the price/performance of the system is extremely attractive."

"The BC Gas deployment will be one of the most advanced in Canada, putting BC Gas ahead of its competitors in offering innovative customer services and complex billing capabilities for today's deregulated, increasingly web-based market," said Brian Peace, CEO and founder, Peace Software. "Peace has a large installed customer base in New Zealand and Australia, the deregulated markets for which Energy was initially designed, and we are now moving aggressively to fulfill demand as deregulation extends to North American markets."

Peace's Energy CIS Solution
Peace Software's Energy software product is a comprehensive information system designed to meet and anticipate the needs of the competitive energy retailer and utility distribution companies. Energy includes the functions required for energy service providers to operate successfully in deregulated markets, including customer enrollment, call-center customer care, Internet customer service, accounts receivable, integrated residential and industrial customer billing, consolidated billing or commodity-only billing, billing of other products and services, demand forecasting and demand settlements.

Peace’s Energy product also provides complex billing, real-time pricing, contract management and energy trading to address the needs of commercial/industrial segments. A three-tier architecture ensures scalability and allows the utility to implement commercial/industrial accounts initially and later add the residential client base.

The BC Gas Prince George Peace Energy Pilot
The Peace Energy system was initially deployed and tested in the small town of Prince George in northern BC, supporting approximately 25,000 residential, commercial and industrial utility consumers. The pilot commenced in January, 1998 and was deployed in just nine months. Prince George was selected for its size, non-transitory customer base, and its mix of residential, commercial and industrial consumers.

As part of the pilot, utility consumers logged on to the BC Gas web site to pay their bills online and to access usage information. The Peace Energy system provided end consumers online, 24-hour Internet access to their account details. Residential customers were allowed to ask questions, request products and services, analyze their energy usage for any historical period. Commercial customers were able to explore detailed 3-D demand and price profiles utilizing Peace's Java and VRML browser data visualization technology, while large industrial customers tested the complex billing and gas nomination/trading features of the system. "We were able to deploy the pilot with Peace's Energy product out of the box, with very little customization needed, which greatly accelerated our pilot process," said Lloyd. "The customer response from the Prince George pilot was support for the online services, and excitement over the value that BC Gas was providing its customer base."

About BC Gas
BC Gas Inc. is a leading provider of energy and utility services in Western Canada and the US Pacific Northwest. The company owns two regulated operating entities - BC Gas Utility Ltd. And Trans Mountain Pipe Line Company Ltd. - as well as a number of non-regulated businesses. BC Gas Inc. shares are traded on the Toronto, Montreal (?) and (?) Vancouver Stock Exchanges. Additional information about BC Gas is available at www.bcgas.com.

About Peace Software
Peace Software International develops and implements the Energy Customer Information System for gas, electric, and water utilities. Peace’s systems are web browser-based solutions that operate on open hardware and relational databases. Peace’s experience around the world in deregulated markets uniquely enables the company to provide competitive advantage to Customers. Additional information about Peace is available at www.peace.com.

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