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News 2000

 

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FOR IMMEDIATE RELEASE
Leading Utility ASP Acquired by Investment Group

BEND, OR., March 2, 2000 - Orcom Solutions, the largest Application Service Provider (ASP) of billing and customer care services to the utility and energy industry, was acquired today by LiveWire Utilities, L.L.C., a newly formed company organized by Steven Price and Stuart Rosenstein. LiveWire Utilities principal outside investors include: affiliates of Thomas H. Lee Company, The Blackstone Group, EnerTech Capital Partners, Waller-Sutton Media Partners, and Mellon Ventures.

"Orcom’s new investors bring the financial and strategic resources to position the company for significant growth opportunities in the billing and customer care services arena," said Drew Child, Orcom President and Chief Operating Officer.

Orcom is the largest ASP of software delivery and hosting and business process management services to utilities and energy providers, delivering billing and customer care services to more than 1.2 million customers. As an ASP, Orcom is a full service partner that manages its own software, developed specifically for the industry, as well as the hardware and network to Deliver it. The ASP business model has gained rapid acceptance in the technology arena because it allows companies to focus on core business competencies by outsourcing technology management functions for non-core business functions. Orcom, an IBM business partner, is an ASP Industry Consortium member.

"We believe the changes in the utility and energy services market demand a new approach to Delivering customer information solutions," Child said. "Our ASP package is designed around what our clients need, and with the backing of a group of extremely prestigious private equity investors, we now have the financial resources to expand our presence in the market place."

"Our investment is based on our confidence in Orcom as a company and our belief in the future of the ASP business model in the utility industry," said Steven Price, Chief Executive Officer of LiveWire Utilities. "This technology approach has been growing in other industries with exceptional success, primarily because it aligns the technology provider with the client – both want lower costs, faster implementation, process improvement and technology enhancement. Orcom understands this approach better than any other company, and is the most strategically positioned to provide this expertise to the utility industry."

About Orcom Solutions
Orcom Solutions is headquartered in Bend, Oregon, with an office in Denver. Its ASP services are delivered from its customer service center in Scottsbluff, Nebraska, which also provides business process management services including call center and customer care, remittance processing, bill print, and credit and collections services. Orcom currently has more than 500 employees.

About LiveWire Utilities
LiveWire Utilities is a LiveWire company. LiveWire is a diversified software and Internet company focused on business-to-business and mission critical software products and services for media, telecom, utility, and new media companies. Among other LiveWire investments and affiliates are H.O. Systems, a leading provider of billing, customer care and e-business solutions to the telecom industry; Enterprise Software, the premier provider of advertising traffic and program management solutions to broadcast and cable operators; and GiantBear.com, a web to wireless information and content management exchange.

About Thomas H. Lee Company
Thomas H. Lee Company, one of the oldest and most successful private equity investment funds in the U.S., has invested approximately $4 billion of equity capital in more than 90 businesses since 1974.

About The Blackstone Group
The Blackstone Groupis a New York-based private investment bank founded in 1985 and is active in principal investing, real estate investing, mezzanine investing, liquid alternative asset management, mergers and acquisitions advisory, and restructuring and reorganization advisory.

About EnerTech Capital Partners
EnerTech Capital Partnersis a private equity partnership affiliated with Safeguard Scientifics (NYSE: SFE) and its related venture capital group, TL Ventures. Investments are principally in electric, gas and water utilities and telecommunications companies.

About Waller-Sutton Media Partners
Waller-Sutton Media Partnersis a private equity firm established to develop a diversified portfolio of private equity investments in growth companies involved in the media, communications and entertainment industries.

About Mellon Ventures
Mellon Ventures, an affiliate of Mellon Financial Corporation, has invested over $500 million in direct equity investments and private equity limited partnerships. Mellon Ventures has offices in Pittsburgh, Philadelphia, Atlanta, and Los Angeles.

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