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Hydro One and Cap Gemini Ernst & Young Announce Signing of $CDN 1 Billion Outsourcing Agreement

Toronto, Canada - February 13, 2002 - Hydro One Networks Inc. and Cap Gemini Ernst & Young Canada Inc. have announced an agreement that will result in Inergi LP managing and operating existing business processes and technology enabled services for Hydro One. Inergi is a limited partnership owned by BTS - a 100% subsidiary of Cap Gemini Ernst & Young Canada Inc.

The 10- year agreement is valued at approximately $1 CDN billion. Under the agreement, more than 900 employees will move from Hydro One to Inergi, effective March 1, 2002. Employees of technology focused Inergi will provide Enterprise Technology Services, Human Resources Payroll, Supply Chain, Customer Service Operations and Settlements, and Accounting services to Hydro One. The Customer Services Operations are to be managed by Vertex Customer Management (Canada) Limited under subcontract from Inergi.

"This arrangement with Inergi will allow us to continue to concentrate on our core wires business," said Hydro One President and CEO Eleanor Clitheroe. "It also gives our transferring employees growth opportunities in their area of expertise."

Outsourcing its IT and business processes to Inergi provides Hydro One with an opportunity to obtain more competitively priced services for non-core activities for an extended period of time.

"This agreement positions Cap Gemini Ernst & Young as the leader in the Energy Operate market in North America, and reinforces CGE&Y Canada's presence in the overall outsourcing space. " said Eric Morgan, CEO of Cap Gemini Ernst & Young Canada. "Hydro One provides us with a unique critical mass of outstanding technology and energy professionals and infrastructure to better serve the energy industry in North America."

Over the next six to 12 months, new business processes will be developed and implemented by the parties to enhance operational efficiencies and establish volume and service levels.

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Hydro One Networks Inc., a subsidiary of Hydro One Inc., owns and operates the largest transmission and distribution system in Ontario and one of the 10 largest in North America. Hydro One Networks has approximately 1.2 million distribution customers in Ontario.

Hydro One Inc., through its subsidiaries, is principally engaged in electricity transmission, distribution, telecommunications and energy services businesses. For company information, please visit www.HydroOne.com.

Cap Gemini Ernst & Young is one of the largest management and IT consulting firms in the world. The company offers management and IT consulting services, systems integration, and technology development, design and outsourcing capabilities on a global scale to help businesses continue to implement growth strategies and leverage technology in the new economy. The organization employs about 60,000 people worldwide and reports global revenues of about 8.5 billion euros (2000 pro forma). More information about individual service lines, offices and research is available at www.cgey.com

Cap Gemini Ernst & Young Canada is a leading Canadian management and information technology consulting firm, providing outsourcing capabilities, strategy and technology consulting services, systems integration and technology development on a global scale. Cap Gemini Ernst & Young serves many of Canada's energy and utilities organizations. The firm also works on behalf of many of the country's leading consumer products, financial services, health care/life sciences, high tech, automotive, supply chain management, telecom and media companies. Cap Gemini Ernst & Young Canada is headquartered in Toronto, and has offices in Vancouver, Calgary , Ottawa and Montreal. For company information visit www.ca.cgey.com

Vertex Customer Management (Canada) Limited is a wholly owned subsidiary of Vertex Data Science Limited, a UK Business Process Outsourcing company. Vertex provide end-to-end customer management solutions to numerous blue chip organizations. We employ 9000 employees, and every year Vertex handles around 14 million client customers, over 106 million calls, prints and sends out 36 million bills and processes 93 million payment transactions to a value of over £6 billion. For company information visit www.vertex.co.uk

For further information, please contact:

Terry Young
Director, Communications
Hydro One
(416) 345-6072

Carolyn Rouse
National Public Relations
Cap Gemini Ernst & Young
Office: (416) 941-1819
Mobile: (416) 529-5920