CONTACT INFORMATION

Peace Software
www.peace.com

Sally Walls (North America): sally.walls@peace.com
Sally Raudon (Asia-Pacific): sallyr@bca.co.nz
James Griffin (Europe): james.griffin@peace.com

MIAMI , FL, August 24, 2004 – Peace Software today announced that Xcel Energy and IBM Global Services have deployed the Peace™ Customer Information System (CIS) product for 1.5 million electricity and 1.2 million gas customers in six U.S. states. This achievement marks the largest multi-state commercial-off-the-shelf CIS installation in North America.

Formed in 2000 by the merger of Denver-based New Century Energies and Minneapolis-based Northern States Power Co., Xcel Energy inherited two legacy CIS systems from the predecessor companies. While both of these systems were Customer/1 systems, they were on different infrastructures, one mainframe and one client server. In 2002, Xcel Energy set forth to replace both legacy systems and consolidate all customers onto the browser-based Peace CIS for standardization and optimization of business processes, customer service and reporting.

IBM Global Services was the overall project manager and systems integrator for this complex implementation, which also included data conversion. As a result of the Peace CIS installation, Xcel Energy will have all of its customers in 11 states on one system.

The Peace CIS implementation project was divided into three phases, commencing in August 2003 with the conversion of 220,000 Colorado customers. In May 2004, 2.7 million customers in Colorado, Kansas, New Mexico, Oklahoma, Texas and Wyoming were consolidated onto Peace. The final phase involves converting the remaining 2.4 million northern territory customers onto Peace.

Key functionality in production at Xcel Energy is part of the Peace 8 product available to the market.

About Xcel Energy
Xcel Energy (NYSE:XEL) is a major U.S. electricity and natural gas company with regulated operations in 11 Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. In terms of customers, it is the fourth-largest combination natural gas and electricity company in the nation. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

About IBM Global Services
IBM Global Services is the world's largest information technology services and consulting provider, generating record revenue and signings in 2003 of $42.6 billion and $55.5 billion, respectively. Some 180,000 professionals in more than 160 countries help clients integrate information technology with business value -- from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. Leveraging IBM's unequalled scope and scale, IBM Global Services delivers integrated, flexible and resilient processes -- across companies and through business partners -- that enable clients to benefit from the on demand business model by saving money and transforming their businesses to be more competitive. For more information, visit www.ibm.com/services.

About Peace Software
Peace Software is a Tier 1 CIS software product development company. The company develops an off-the-shelf CIS product called Peace, which enables utilities to acquire, bill and manage millions of electricity, gas and water customers efficiently and at low cost. Installed at major utilities in 20 regulated and competitive energy markets, Peace is selected for 13.5 million customers and bills US$5.9 billion in client annual revenue. Headquartered in Miami, Florida, Peace Software has offices and operations in the United States, Australia, Canada, New Zealand and the United Kingdom.

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