EnergyConnect, Inc.

Milestone Contract Opens Significant New Market with Latest Demand Response Program in PJM Interconnection Network

KEY HIGHLIGHTS:

• State Contract Further Validates EnergyConnect’s Industry-leading Energy Automation Technology
• Contract Reflected in 1,400 Building Equivalent total as of September 30, 2007
• Company Continues on High-Growth Business Model Targeting Initial $12 Billion Market

PORTLAND, OR–(BUSINESS WIRE)– Microfield Group, Inc. (”Microfield”) (OTCBB: MICG - News) an innovator in the demand-response marketplace, has announced that the Company has executed an agreement to become the primary provider of demand response services for a major eastern seaboard state. This contract, the largest such comprehensive state program to date in PJM, further validates the Company’s high-growth business model that targets a $12 billion segment of the demand response marketplace in 20 major U.S. metropolitan centers.

The new agreement also rapidly increases EnergyConnect’s total participant peak electricity load involved in demand response by more than 500 megawatts, including major government and educational institutions.

“Being selected as the provider of demand response services for this state is a major win for Microfield and a clear testament to the competitive strength of EnergyConnect’s innovative technology and products,” said Rodney M. Boucher, Chief Executive Officer of Microfield Group. “We are gratified to receive this independent verification of our EnergyConnect programs as best-of-breed in the national demand response sector of the alternative energy industry.”

The new agreement raised the number of Building Equivalents (BE) by more than 100 during the third quarter of fiscal 2007. One BE is equal to approximately 1 million square feet of commercial space in a large building, a campus or an industrial site. EnergyConnect has targeted an estimated 1500 BE for fiscal 2007 as a means to quantify the Company’s future growth expectations.

Microfield’s EnergyConnect division ushers in a paradigm shift in the sector traditionally known as demand response. EnergyConnect’s real time auto-response technology allows participants to capitalize on hourly price fluctuations and daily commitments, as well as emergency response services to maintain grid stability. In addition to these previously untapped revenue streams, EnergyConnect’s industry leading technology allows the Company to meet the unique needs of each participant, resulting in a significantly larger target market with ample opportunities for growth.

The agreement announced today further enhances a year of growth marked by the substantial year over year increases in revenue for Microfield’s EnergyConnect products and services reported by the Company in 2007.

About EnergyConnect, Inc.
EnergyConnect, Inc. is the leading provider of Energy Automation services. More than just demand response, EnergyConnect’s Energy Automation solutions proactively engage energy market participants, Independent System Operators, Regional Transmission Organizations and Electric Utilities. EnergyConnect is on the web at www.EnergyConnectInc.com.

About Microfield Group, Inc.
Microfield’s EnergyConnect division is harnessing the nation’s energy infrastructure with smarter technology solutions that capitalize on the emergent multibillion-dollar Demand Response marketplace. Our products and services provide sustainable, cutting-edge solutions that enable consumers to lower their increasing energy costs and generate significant revenues while reducing the pressure on the nation’s power grids and energy infrastructure. Microfield’s EnergyConnect works in tandem with major consumers of electricity to generate significant, long-term revenues through environmentally responsible solutions that make smarter use of the energy that’s already available. The Company’s high-growth business strategy is targeting an estimated $12 billion segment of the $300 billion energy marketplace. Through our leading-edge technologies, EnergyConnect is enabling a win-win partnership between consumers, utility companies, electricity grids and all energy market participants.

For investor-specific information and resources, including news and stock quotes, please visit www.trilogy-capital.com/autoir/micg_autoir.html.

Forward-Looking Statements
This press release includes statements that may constitute “forward-looking” statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause or contribute to such differences that include, but are not limited to, competitive factors, the success of new products in the marketplace, dependence upon third party vendors, and the ability to obtain financing. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

Contact:
Microfield Group, Inc.
Randy Reed, Chief Financial Officer, 503-419-3364

or
Trilogy Capital Partners
Financial Communications
Ryon Harms, 800-592-6067
ryon@trilogy-capital.com

Posted on Friday, November 30th, 2007 - Press Releases