EnergyConnect, Inc.

Contract Expected to Improve Reliability of Virginia’s Electricity Grid and Reduce Load

PORTLAND, OR–(BUSINESS WIRE)– Microfield Group, Inc. (”Microfield”) (OTCBB: MICG - News) an innovator in the demand-response marketplace, has announced a recent press release made public by Virginia Governor Timothy M. Kaine detailing the State’s milestone contract with EnergyConnect.

Begin Press Release:

Governor Kaine Announces EnergyConnect Contract

Contract will improve reliability of Virginia’s electricity grid and reduce load

RICHMOND – Governor Timothy M. Kaine today announced that Virginia has entered into a contract with EnergyConnect that will help improve the reliability of Virginia’s electricity grid and will provide incentive payments for reducing the load on the grid. EnergyConnect is a wholly owned subsidiary of Microfield Group Inc.

“Virginia’s Energy Plan recommends that the state government lead by example,” Governor Kaine said. “This contract does exactly that.”

This program will benefit all citizens of the Commonwealth by reducing the need for electrical utilities to build additional generating plants, transmission, and distribution lines.

The contract will see to it that the demand is reduced on the grid during times of peak electrical load, such as a very hot day in July or August, or in an emergency. A Curtailment Services Provider, such as EnergyConnect, works with the electric utility and the Regional Transmission Organization. Reducing the load helps the grid by making more electricity available to homeowners and reduces the need for electric utilities to start additional generating units. In the event of an emergency, such as the loss of a transmission line, this program could help stabilize the electricity grid by taking load off of the utility and preventing a complete collapse of the grid.

EnergyConnect will assist state agencies, educational facilities, and other public bodies in curtailing their use of electricity during periods of peak use. Payments for this electrical demand curtailment will be made directly to the participating organization and has the potential of exceeding $10 million per year in payments to state agencies. This will provide an additional funding source for agencies in these challenging financial times.

“We look forward to working with Governor Kaine to provide the Commonwealth with cleaner, more efficient sources of energy,” said Rodney M. Boucher, Chief Executive Officer of Microfield Group. “EnergyConnect is committed to ensuring that Virginians benefit from the most advanced demand response technology available.”

End Press Release

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 Group is the first company to deploy market-disruptive energy automation technology in the demand response marketplace. Utilizing an industry-leading intellectual property portfolio, The Company’s EnergyConnect platform and technology enables large consumers of energy — such as buildings, campuses and factories — to exploit previously untapped revenue opportunities in the wholesale market for electricity. EnergyConnect products transform passive consumers of energy into active producers and participants to deliver the cleanest, most efficient and lowest cost supply of electric energy available.

Microfield’s senior management team has identified an initial $12 billion sector of the $300 billion market for electricity in the United States. This virtually untapped target market, consisting of large commercial, industrial and governmental energy consumers, is located within 20 of the nation’s largest metropolitan centers.

EnergyConnect’s real time auto-response technology allows demand response participants to capitalize on hourly price fluctuations and daily commitments in the electricity supply, as well as emergency response services to improve grid economics and maintain grid reliability. In addition to these previously unavailable revenues 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.

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 Wednesday, December 19th, 2007 - Press Releases