NeuCo named as a winner in DOE's Clean Coal Power Initiative competition

BOSTON, Mass., Feb. 3, 2003 -- NeuCo, Inc., a provider of optimization software solutions for the electric power industry, Monday announced that its proposal for $8.4 million in Department of Energy (DOE) funding was selected as a winner in President Bush's Clean Coal Power Initiative (CCPI) competition.

NeuCo's proposal is for the design, development and demonstration of a comprehensive and fully integrated suite of online plant optimization solutions at Dynegy's Midwest Generation Baldwin Energy Complex in Baldwin, Illinois.

The CCPI is a $1.3 billion cost-shared partnership between the industry and government to demonstrate advanced coal-based power generation technologies that could help meet the President's Clear Skies and Climate Change initiatives. NeuCo is one of eight companies to be selected as a winner in the initial round of competition.

"The level of interest expressed in this first competition was tremendous," said Secretary of Energy Spencer Abraham. "That is a clear indication of the potential to develop and apply technology to improve our energy security through the use of coal, our most abundant natural resource."

NeuCo's proposal is for a 4-year technology development initiative that would cost up to $18.6 million. Upon successful contract negotiation, the DOE would provide cost-sharing funds of 45%, or up to $8.4 million.

The new optimization solutions to be developed by NeuCo under the proposed contract include sootblowing, SCR operations, overall unit thermal performance and plant-wide profit optimization. In addition, this would be the first time an integrated real-time software environment is able to coordinate these critical plant sub-systems to optimize a unit's performance goals, and to coordinate multiple units to optimize a plant's business objectives.

The expected benefits of these solutions include reduced NOx emissions, improved fuel efficiency and increased availability. The improvements in fuel efficiency are expected to provide commensurate reductions in greenhouse gases, mercury and particulates.

These new applications will be built on NeuCo's ProcessLinkTM optimization technology platform, a proprietary software environment that was specifically designed to handle large-scale, diverse and distributed process optimization challenges.

NeuCo's ProcessLink technology was first applied to combustion optimization at wall-, roof- and tangentially-fired fossil steam boilers, and has helped over 40 generating units throughout the United States to reduce NOx emissions by 10% to 30% and improve fuel efficiency by 0.5% to 1.5%. The new applications will address the critical operating systems of complex fossil steam generation, and extend the ProcessLink capabilities to all fossil generation.

"We are thrilled to be one of the initial eight companies selected in President Bush's Clean Coal Power Initiative," said Curt Lefebvre, NeuCo's president and CEO.

"This is a testament to the significant impact that our technology can have on boosting the efficiency, cleanliness and competitiveness of coal-fired power plants. NeuCo has long seen the value of deploying advanced technologies to optimize and integrate all the critical plant operations in real time; the Clean Coal Power Initiative funding will significantly speed up the delivery of this network of solutions into the market to help power producers meet the objectives set forth in the Clear Skies and Climate Change initiatives."

About NeuCo, Inc.

NeuCo, Inc. provides optimization software solutions that help electric power producers reduce emissions, perform more efficiently and improve plant reliability and profitability. NeuCo's suite of plant-wide optimization products integrate into a common information technology platform called ProcessLinkTM, so synergies between products and objectives can be achieved. NeuCo is jointly owned by Charles River Associates Incorporated (Nasdaq: CRAI - News), Advanced Energy Systems, Babcock-Borsig Power and employees. More information about NeuCo can be found on the company's Web Site at www.neuco.net.

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