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Fulcrum Power Services and Tara Energy Announce Strategic Business Combination

Posted on: Thursday, 3 September 2009, 08:30 CDT

HOUSTON, Sept. 3 /PRNewswire/ -- Fulcrum Power Services, LP, (Fulcrum) and Tara Energy LLC (Tara), today announced that they are combining Fulcrum and Tara through the exchange of Tara's outstanding shares for Fulcrum shares, subject to certain regulatory approvals. Fulcrum is a full service energy management company and Tara is one of the largest independent retail electricity providers (REP) in Texas. The combination positions both Fulcrum and Tara to achieve their vision of becoming a premier end-to-end energy company with core competencies in the entire energy value chain including power generation, energy management services and retail electricity marketing.

"We believe that this merger will create tremendous long-term value for our shareholders and our customers," said Jesson Bradshaw, CEO of Fulcrum. "Tara and Fulcrum have done business together for many years and capitalizing on our complementary business models in the current environment made perfect sense."

Bradshaw added that the combination of Fulcrum and Tara is a major step towards the company's goal to further expand its retail platform, which already includes Amigo Energy (Amigo). "We are proud of the fact that we are now among the largest independent retail electricity providers with two brands that have cultivated an excellent reputation for service within their customer base. We are also excited to have members of Tara's senior leadership become a part of Fulcrum to bring their expertise to our retail businesses. This will allow us to deploy best practices across both of our retail business units for the benefit of customers."

"Tara is pleased to join forces with Fulcrum Power Services," said Neville Ravji, CEO of Tara Energy. "With Fulcrum's expertise in power generation management, wholesale energy transaction and risk management services, Tara will be well-positioned to offer highly customized competitive electricity products and value-added services in deregulated markets."

Tara Energy was founded in 2002 and it primarily serves a variety of niche affinity customers in both commercial and residential markets. Amigo Energy primarily serves residential customers in Texas and received the third highest satisfaction rating in J.D. Power and Associates 2009 Texas Residential Retail Electric Provider Customer Satisfaction Study(SM). As subsidiaries of Fulcrum, Tara and Amigo will continue to be independent REPs, maintaining their separate brand names, existing office locations and contact details. Both companies will take utmost care to ensure the highest customer service standards.

About Fulcrum Power Services

Fulcrum Power Services, with its general partner Fulcrum Energy LLC, manages the physical, financial and commercial energy transactions and logistics for power generators (renewable and fossil fueled assets), retail electricity providers (REPs), large consumers, and financial entities. Fulcrum is currently managing over 4,000 MW of power generation assets, including approximately 1,500 MW of renewable generation, across the U.S. From forecasting and hedging to scheduling and dispatch, Fulcrum provides a wide array of high-value energy management services. The company's website is www.fulcrumpower.com.

About Tara Energy

Founded in 2002 and headquartered in Houston, Tara Energy is one of the largest independent retail electricity providers in the state of Texas. Tara is empowering its customers by providing them value through competitively-priced electricity and outstanding personalized service. Tara is also proudly empowering communities by supporting causes that matter to its customers through innovative contribution programs. To learn more about Tara and its commercial and residential energy services, visit the company's website at www.TaraEnergy.com.

SOURCE Fulcrum Power Services, LP; Tara Energy LLC

Source: PR Newswire

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