Enersource Corporation

Enersource Corporation

March 16, 2006 15:11 ET

Enersource to Sell Its Telecom Assets to Blink Communications

MISSISSAUGA, ONTARIO--(Marketwire - March 16, 2006) -

Attention Business Editors:

Enersource Corporation ("Enersource") has announced the signing of a binding agreement that will result in the sale of the assets of its affiliate company Enersource Telecom Inc. ("Enersource Telecom") to Oakville Hydro Communications Inc. ("Blink"), with closing expected this spring.

The transaction has been carefully structured to ensure a smooth transition for Enersource Telecom customers and employees. In the period leading up to transaction closing, Enersource Telecom and Blink intend to work closely to ensure that the transition is seamless for customers, with Blink assuming control on the closing date. Under the terms of the agreement, Blink will provide offers of employment to all Enersource Telecom employees.

"We're very proud of the innovation and dedication of those who established Enersource Telecom as one of the early success stories in the so called 'utelco' industry. We are also confident that our telecom clients will be in good hands with Blink; a business that, like Enersource Telecom, has established an exemplary record of reliable performance and customer service," said Gunars Ceksters, President and Chief Executive Officer of Enersource Corporation.

Enersource has shifted focus in recent years, and has made a significant organizational commitment to help address the emerging gap between electricity supply and demand. The utility has been a strong proponent of utilizing smaller 'distributed' and clean sources of power generation that, if coordinated through local electricity distributors, can significantly strengthen the reliability and capacity of Ontario's electricity grid. Enersource has also been a strong supporter of conservation delivered directly to customers, at the local level, to achieve sustained lowering of the demand for power.

"This sale positions us to concentrate squarely on our core strengths as the electricity market continues to evolve," added Ceksters. "Our electricity rooted activities have expanded considerably as we provide conservation leadership, pursue new opportunities for developing electricity generation projects and carry out the important responsibility that we have to maintain high performance within our local distribution network."

Enersource Corporation is a diversified energy and technologies company focusing, more than ever, on quality of service with the distribution of electricity in the City of Mississauga, the promotion and delivery of conservation and smart metering solutions to meet government objectives, and increasing involvement in distributed generation to enhance provincial electricity supply. Enersource Corporation is 90% owned by the City of Mississauga, and 10% owned by BPC Energy Corporation ("Borealis"), a subsidiary of the Ontario Municipal Employees Retirement System. For more about Enersource visit www.enersource.com.

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