EnergyConnect, Inc. Launches Strategic Alliance to Provide Demand Response Services with Veolia

Agreement Provides Customers with Access to Innovative Demand Response Services

Portland, OR – June 3, 2008: EnergyConnect, a wholly owned subsidiary of Microfield Group, Inc. (MICG.OB), and industry leader in innovative demand response technologies, today announced an alliance with SourceOne, Inc, a division of Veolia Energy, to provide demand response services to Veolia and its customers in the New York and New England markets.

This partnership will provide SourceOne customers with EnergyConnect’s demand response technology. EnergyConnect’s cutting-edge demand response capabilities enable a smarter, more sustainable power grid while creating additional profit for participating companies. SourceOne will be expanding their current demand response offerings to their existing commercial and municipal clients, with the support of EnergyConnect.

“Electricity consumers that actively participate in demand response can reduce electricity costs and generate a new source of income, while also helping ease the pressure on the nation’s power grids and energy infrastructure,” said Steve Schaefer, Senior Vice President of Sales & Marketing at EnergyConnect. “We are pleased to be partnering with Veolia to provide their electric customers with access to our innovative demand response services.”

EnergyConnect helps participating companies easily and quickly shape electricity consumption to create new income streams during times when the electric grid is stressed. EnergyConnect’s proprietary web-based demand response platform provides real-time guidance and automated execution that allows customers to shape and curtail their usage patterns 24/7 in response to wholesale electric market prices.

“We are excited to be able to deploy EnergyConnect’s suite of tools as we provide innovative demand response solutions to our customers in the New England and New York regions,” said Tom Gavin, Vice President of SourceOne. “SourceOne is committed to offering our customers sustainable, environmentally friendly energy solutions. With EnergyConnect we provide the real-time service that our customers need to shape and curtail energy use, increase income and minimize risk.”

About EnergyConnect, Inc.
EnergyConnect, a wholly owned subsidiary of Microfield Group, Inc. provides industry leading Demand Response technologies and services that enable a smarter, more sustainable power grid while creating additional income for participating companies. EnergyConnect transforms passive consumers of energy into active producers and participants to deliver the cleanest, most efficient and lowest cost supply of electric energy available. The EnergyConnect web-based automated platform enables consumers of energy to participate in unprecedented profit opportunities in the wholesale market for electricity. For more information about this next generation technology, visit: www.energyconnectinc.com

About SourceOne, Inc. /Veolia
SourceOne, Inc. is a leading provider of comprehensive energy services to public and commercial enterprises throughout the United States. SourceOne provides power capacity and reliability services, power master planning, commodity management and commissioning services in premium power environments. Veolia Energy and its parent corporation Veolia, is a world leader in energy services. With more than 300,000 employees the company has operations all around the world and provides tailored solutions to meet the needs of municipal and industrial customers in four complementary segments: water management, waste management, energy management and freight and passenger transportation. Veolia Environment recorded revenue of €32.6 billion in 2007. www.s1inc.com

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.

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