Knoxville, Tenn., March 12, 2004 - EnerNex Corporation, an electric power engineering and consulting firm specializing in the development and application of new electric power technologies, announces that it has been awarded a contract from the U.S. Department of Homeland Security Advanced Research Projects Agency to research ways of enhancing the cyber security of electric utility communication and control systems. EnerNex was the only Tennessee company to receive such a contract, administered through the Department of Homeland Security's Small Business Innovation Research Program.

EnerNex proposed to explore enhancing the ability of electric utility Supervisory Control and Data Acquisition (SCADA) systems to withstand cyber attack by implementing encryption and other advanced technologies in an industry communication protocol that was recently finalized and is being implemented by manufacturers and utilities. These systems provide remote monitoring and control for a number of industries, including electricity, water, gas, oil, and telecommunications and a number of organizations have studied them over the past several years and have found them to be at risk to physical and cyber attack.

According to Erich Gunther, co-founder and Chief Technology Officer of EnerNex, there is a definite need for research of this type: " At the present time, there are millions of SCADA data collection points in the field, using a multitude of communication protocols, most of which are inherently insecure. Our goal is to evaluate the requirements and feasibility of implementing high security encryption that can be readily overlaid on both existing and future systems."

Gunther said the project would focus on implementing cryptographic technologies, propose methods to use these technologies to secure the systems, and then evaluate their performance. "The idea is to demonstrate that strong security can be implemented in a low-cost fashion without compromising operational performance. If successful, this effort could yield a readily implemented, economically feasible way to enhance the security of electric power SCADA systems," he said.

EnerNex Corporation provides engineering and consulting services, along with software solutions and customization, for energy producers, distributors, users, and research organizations. These are offered through practice lines focusing on electric power system studies and analysis, utility communication and automation, systems integration, and technology analysis and transfer. The company was established by Erich Gunther, Jeffrey Lamoree, and Robert Zavadil, who have more than 50 years of collective experience in the electric power industry and are all internationally recognized in their various areas of expertise. For more information on EnerNex, visit www.enernex.com.

This project is sponsored by the U.S. Department of Homeland Security. The information contained in this press release does not necessarily reflect the position or the policy of the Government and no official endorsement should be inferred.

Contact: Carrie Parks
Phone: 865-218-4600 ext.6142
carrie@enernex.com
www.enernex.com