ASX Announcement - USC forms alliance with Primergy

25 February 2002

Utility Services Corporation Ltd (USC) has formed an alliance with renewable
energy company Primergy Limited.


USC will offer outsourced operations and maintenance services to Primergy
for its renewable power projects.


USC executive chairman Mr Geoff Lord said an important part of the alliance
between the two companies was that it would enable USC to enhance its
service offerings to its utility customers by including Primergy's renewable
energy products in a bundled service package including green or carbon
credits. Primergy would benefit by using USC as an important distribution
channel to electricity retailers.


USC will also assist Primergy with project finance and project construction.



USC will subscribe for a $5 million Primergy convertible note at 9.5%
interest p.a. The note will convert into Primergy equity on an ASX listing
by Primergy or the second anniversary of the issue of the note, whichever
is earlier.


USC shareholders will be advised of details of any proposed listing of
Primergy and it is anticipated that they would have an opportunity to
participate in any public offering of shares in Primergy.


Primergy is developing a range of renewable energy projects in Australia
and the UK. Several projects will use new technology to convert agricultural
and wood waste into useable energy.


The company has completed a private equity raising of more than $28 million,
including the USC investment, part of which was used to fund the purchase
of CPL Energy, the UK's second largest landfill gas-to-power business,
which owns and operates generating plants at 13 sites in England and Wales.


This issue brought to almost $45 million the amount raised by Primergy
in private capital raisings.




About Utility Services Corporation


Utility Services Corporation (USC) is listed on the Australian Stock
Exchange with market capitalisation in excess of $55 million. It operates
through 3 business groups:


1. Utility Group comprising Utility Asset Management (with services such
as customer connections and maintenance on utility power distribution
assets), Skilltech (meter reading and services), U-tel (mobile phone services)
and neopurple (industrial, creative and web design).



2. e-business comprising the electronic commerce consulting business of
Opticon (consulting and project management services in information, communications
and technology), and Gibson Quai (consulting, engineering and project management
in telecommunications) and the financial applications business QSP.



3. Technology Investments, which holds venture capital-style interests
in strategic technology businesses including ILID, Fox Technologies, Percipience
and the Logica Resource Agreement (ERA). The Primergy investment will
be included in this group.


USC is currently negotiating additional acquisition opportunities in
professional services in specialised technology, consulting and e-business.
The Board expects to make further announcements in the near future.



Further information:

Geoff Lord

Executive Chairman

Utility Services Corporation Limited

Tel: (03) 9941 3100

www.utilityservices.com.au