Business & Money Trail:

NewEnergy ADDS TRADING AND RISK MANAGEMENT CAPABILITIES

NewEnergy Associates, LLC announced the addition of trading and risk management capabilities to its existing line of premier solutions for the energy industry.

Through a strategic partnership with Woodlands Technology, LLC, NewEnergy presents NewEnergy Monaco, a proven, full functionality and scalable software solution supporting trading and risk management in the volatile energy commodity markets of today and tomorrow.

"With this new capability, NewEnergy is now the only system provider that can deliver the full spectrum of physical and financial solutions that today's best-in-class energy companies require," stated Jesse H. Davis, II, president & CEO, NewEnergy. "Retailers, Wholesalers, Generators, Utilities, Municipalities and Cooperatives can now rely on our integrated NewEnergy Office product suite to deliver the efficiency gains and analytical capabilities that they need across their entire organization."

• Load Forecasting & Aggregation
• Price Forecasting
• Quote Management & Pricing Analysis
• Deal Capture & Trade Management -- Enterprise Risk Management
• Physical & Financial Asset Valuation
• Gas & Power Market Simulation
• Scheduling & Nominations
• Settlement & Invoicing
• Budgeting & Financial Planning

NewEnergy Monaco, built and supported by a team of energy trading, risk management and software engineering professionals, is available in three products: Monaco Enterprise, Monaco Analyst and Monaco Base.

Monaco Enterprise: Monaco Enterprise meets the needs of the largest energy trader. Monaco Enterprise provides an integrated Front, Mid and Back office solution with comprehensive deal capture of both physical and financial transaction types across all energy commodities. Monaco Enterprise also provides real time valuation and all the risk analysis tools expected in an enterprise risk management system with the flexibility required to value the most complex structured transactions. Monaco Enterprise includes the capability to capture all market forward curve information (price, volatility, correlation, intra-day profiles, etc.) and the full spectrum of physical, financial and asset-based transactions. Additionally, Monaco Enterprise uses both closed form and Monte Carlo valuation techniques to provide a complete analysis of the value and risks. It also includes the capability to review results at the portfolio level, to easily include hedges in the analysis, while allowing the user to "drill down" into the detailed calculations at the hourly level. Monaco Enterprise also provides contract, confirmation and credit management, scheduling, volume actualization and settlement, as well as counterparty checkout capabilities.

Monaco Analyst: Monaco Analyst supports the analytical needs of structured product, risk management, asset development and generation planning groups. Monaco Analyst provides the same risk analysis tools that are provided in Monaco Enterprise, including deal capture, market forward curve capture, closed form and Monte Carlo valuation techniques, and risk drill capabilities.

Monaco Base: Monaco Base provides a comprehensive solution for smaller organizations. Monaco Base provides the core functionality of Monaco Enterprise but without the high-end analytics, such as Monte Carlo valuation. Monaco Base provides an economic price entry point for growing organizations; it uses the same infrastructure as Monaco Enterprise and provides a quick and easy upgrade path to Monaco Enterprise.

Technical Architecture

All three Monaco products were built using the latest technology to ensure the solution is both scalable and flexible. Each use a browser based distributed architecture. The valuation engine includes parallel processing capabilities to allow single transactions, trading books or the entire portfolio to be valued on demand. The valuation calculations are distributed across many servers to ensure the fastest calculation times. As the portfolio grows, additional servers can be inserted without any code changes.

Dennis Price, senior vice president, El Paso Merchant Energy stated, "Woodlands Technology understands the complexities of commodity trading and risk management. They delivered a quality product [to El Paso Global Networks] on schedule and as promised."

Woodlands Technology, LLC is headquartered in The Woodlands, Texas, and was founded by energy trading and risk management professionals who teamed with software engineering professionals to develop and support commodity trading and risk management systems. Visit them on the Web at www.woodlandstech.com.

New Energy Associates, LLC is headquartered in Atlanta, Georgia and has specialized in the development and support of integrated, state-of-the-art business applications and consulting services for over 25 years. NewEnergy currently supports over 400 software installations at more than 200 national and international electric and natural gas companies.

To learn more, join the premier of our "Managing Enterprise Risk with NewEnergy Monaco" WebCast, scheduled for Wednesday, May 29, 2002 at 11 am ET. Register for Free at: www.newenergyassoc.com/Webcast/webcast.html#13.

Contact NewEnergy Associates, Atlanta, Mr. Jaime Kirsche, 770-779-2888, info@NewEnergyAssoc.com.