WEBGEN SYSTEMS, INC. SECURES SECOND ROUND OF FINANCING

$6 MILLION FUNDING LED BY GREENLIGHT PRIVATE EQUITY PARTNERS

Cambridge, MA – JULY 16, 2002 - WebGen Systems, Inc., the first Internet-based energy conservation network, today announced the completion of its second round of funding led by Greenlight Private Equity Partners, LP (GPEP). The round brought in $6.0 million and includes options for an additional $6.4 million investment. Greenlight joins first-round investors Bank of America Corporation (NYSE:BAC), BW Energy, LLC and EMCOR Facilities Services, Inc. (NYSE:EME).

"This new capital will enable us to aggressively expand our presence in the energy services industry, and to continue to add to our significant base of corporate and government customers," said David R. Weaver, WebGen Systems’ Chairman, and CEO. WebGen’s leading service is the Intelligent Use of Energy™ (IUE™) system that provides for continuous optimization of energy use.

"We’ve seldom seen a more timely product or opportunity than WebGen," said GPEP Principal Milton Lewin. “The company should allow for a significant return on our investment while its service meets a critical need of society. Every large building in this country should be incorporating WebGen’s technology to realize significant savings on energy consumption.” Currently, IUE customers are seeing an approximate 12% savings on energy costs.

Lewin continued, "WebGen's impressive executive team, and its revolutionary use of technology to monitor as well as control energy resources, positions the company to become an important service provider in the multi-billion-dollar energy services sector."

Greenlight will receive two board of director seats, to be filled by Lewin and Jeff Keswin. WebGen co-founders Weaver and Peter J. P. Brickfield, Daniel Friel of Bank of America, and Jan Kruthoffer, a private investor, hold the remaining seats.

"We are pleased to partner with Greenlight," said Weaver. "They share our commitment to help companies monitor and control scarce energy and reduce costs." Customers currently benefiting from WebGen services include Bank of America, The State of California's Department of General Services, The University of Miami, and Hobbs Brook Management LLC. Feasibility analyses are presently underway for TrizecHahn Corporation (NYSE, TSE: TZH) and Mack-Cali Realty Corp. (NYSE:CLI).

WebGen’s IUE network links commercial, industrial and institutional facilities over the Internet. Once connected, IUE aggregates, monitors and controls the energy use of building systems, device by device. The system analyzes load requirements, energy, weather, space temperature, air quality and other inputs in real time, continuously determining the best settings for each building system, while minimizing energy usage.

By delivering automated permanent load reduction, peak load avoidance and emergency curtailment services, WebGen not only cuts energy costs, but also creates important new revenue opportunities for its customers.

Intelligent Use of Energy and IUE are registered marks of WebGen Systems, Inc., Inc. All other product and company names mentioned are the property of their respective owners and are mentioned for identification purposes only.