HoustonStreet Exchange to launch new, Web-based, pan-European energy trading platform backed by large industry players

Electrabel, RWE and Vattenfall invest in platform to trade energy products and serve as part of e-commerce strategy

London, September 18, 2000 -- Backed by a multi-million dollar investment from some of the biggest names in the European energy sector, HoustonStreet Exchange today announced it is extending its fully Web-based, wholesale energy trading platform to Europe and launching operations on Sep 27. Electrabel, RWE and Vattenfall, listed among the top energy companies in Europe and the world, intend to play a leadership role in the rapidly-deregulating European marketplace by helping to establish a liquid over-the-counter marketplace for trading energy commodities, and to integrate HoustonStreet into their overall e-commerce strategies.

RWE is the third largest multi-utility energy enterprise in Europe, ranking as one of the six largest electricity companies in the world. Vattenfall is the fifth largest electricity provider in Europe, ranking among the world's top 30 electricity companies. Electrabel, affiliated with Tractebel and the energy pool of Suez-Lyonnaise des Eaux, ranks sixth in Europe among Europe's electricity companies and is one of the world's 25 largest energy companies.

HoustonStreet will initially provide traders with a single, pan-European marketplace for buying and selling electricity. The company will roll out the platform to different European regions in stages, beginning with England and Wales, the Netherlands, Switzerland, Austria and Germany. With the support of the partner companies, HoustonStreet expects to create a credible venue for traders where they can find the liquidity they need to easily and efficiently trade their power. HoustonStreet's intuitive platform will allow traders to easily access real-time pricing information and market fluctuations, as well as view the market's depth and breadth. In addition to sophisticated trading capabilities, HoustonStreet will also offer other services through its portal, and facilitate integration of HoustonStreet with trading companies' mid- and back-office systems to enable near real-time risk management.

HoustonStreet's Web-based trading platform is intended to make trading easier and more efficient throughout Europe. "This venture will enable us to extend the leadership we've established in the Nordic markets to Europe. We will, together with Hamburgische Electricitäts-Werke AG, (HEW) and through our joint trading operation Nordic Powerhouse, continuously work towards achieving effective energy markets in Europe to improve our customers' competitiveness," said Jan C. Johansson, executive vice president of Vattenfall.

Hans-Dieter Erfkemper, managing director of RWE Energy Trading, said, "HoustonStreet has the right technology at the right time to seize the opportunity of Europe's deregulating energy markets. This combination of timing and technology will boost liquidity and help us serve our customers."

Bart Pycke, head of power and gas trading for Electrabel, said, "We are impressed by HoustonStreet's advanced functionality, ease of use, neutrality and other value-added services. We believe that HoustonStreet has the technical capability and the business strategy to attract support throughout the industry and bring liquidity to their platform."

HoustonStreet has expanded into Europe with the help of Andersen Consulting, who used its extensive knowledge of the European energy markets to help the company quickly define which markets to enter, how to enter them, and how to gain market share and acceptance. Along with Andersen Consulting are the members of HoustonStreet's "web for the Web," a virtual network of business and technology companies that continue to support HoustonStreet's delivery of wholesale energy trading platforms. This virtual network includes companies such as Equiva, Conoco, Williams Energy Marketing & Trading, Sapient, Bowstreet, MicroArts, and Thomas H. Lee Company. Other relationships include HoustonStreet's recently-announced memorandum of understanding with Enron whereby North American electricity and natural gas prices posted on EnronOnline will automatically be posted on HoustonStreet.com in the U.S.

"The time is right for online wholesale power trading in Europe with electricity markets deregulating virtually overnight," said Tomas Zikas, managing director of HoustonStreet Exchange, Ltd. "We are excited to leverage what we have learned in the U.S. markets, and serve a spectrum of European energy companies with a cost-effective, high-performance trading vehicle. We are extremely delighted with our partners who are all leaders in the energy business and innovative pioneers in bringing energy business and transactions online, and we hope to continue to build on this community of companies by focusing on creating a vibrant European marketplace."

About HoustonStreet Exchange
Designed by traders for traders, HoustonStreet.com represents the first Web portal for trading wholesale energy products. HoustonStreet.com allows traders to buy and sell their energy products faster, more efficiently and more easily than through traditional methods. HoustonStreet, Inc. is headquartered in Portsmouth, N.H. with offices in Houston, Texas and foreign subsidiary offices in Amsterdam and London. The company is a majority-owned subsidiary of BayCorp Holdings, Ltd., (AMEX: MWH).

About Electrabel
Electrabel, based in Belgium is one of Europe's largest utilities. Its core business is generation of electricity; trading of gas and electricity; building, managing and serving the networks used for the transmission of electricity and natural gas. Electrabel was one of the first companies to sell wholesale power outside its home market at emerging trading hubs in Europe. Building on trading experience within the Tractebel Group, Electrabel offers a broad range of innovative trading products targeted at energy operators seeking an active management of their energy portfolio. Electrabel is quoted on the Brussels Stock Exchanges and part of the Tractebel Group of companies. Tractebel is the energy pool of Suez-Lyonnaise des Eaux.

About Vattenfall
Vattenfall is one of the largest energy companies in Europe, accounting for 25 percent of total electricity sales in the Nordic region. The total electricity generation is 85 TWh. Vattenfall is a leading operator of regional and local distribution networks serving 1.1 millions customers. The Group also conducts operations in the areas of heating and natural gas, as well as services and consulting for the energy sector. Vattenfall's biggest customers are energy companies, industrial enterprises, and retail customers in the Nordic region. Vattenfall is also active in the Baltic countries, Germany, Holland, Poland, Czech Republic, Austria, Southeast Asia and South America. About RWE With a turnover of more than 100 bn DM and more than 170,000 employees in over 120 countries all over the world RWE AG, Essen, is one of the largest Multi Utility enterprises in Europe, strongly positioned in all relevant Multi Utility markets: Electricity: No. 1 in Germany, No. 3 in Europe, Gas: No. 2 in Germany, Water: No. 1 in Germany, Waste Disposal: No. 1 in Germany, No. 3 in Europe. Across Europe, RWE supplies 10 million electricity and 1 million gas customers, as well as 13 million domestic water customers day by day.

This press release contains forward-looking statements. There are a number of important factors that could cause these forward-looking statements to be materially inaccurate. These factors include, without limitation, that (i) energy traders may be unwilling or unable to use Internet-based energy trading systems, including HoustonStreet.com, (ii) HoustonStreet.com may not be able to operate profitably, (iii) technological or systems outages could occur, (iv) competitors with greater financial, marketing or other resources could emerge, (v) performance is contingent upon successful completion of design, implementation and improvement to the electricity, crude, refined products and natural gas sites, and (vi) market acceptance of HoustonStreet.com cannot be predicted. HoustonStreet.com is a registered service mark of HoustonStreet Exchange.