ALLENTOWN, Pa.---PP&L Resources, Inc. (NYSE: PPL) is further enhancing its New England presence with its agreement today (7/27) to acquire Western Mass. Holdings, Inc. (WMH), a mechanical contracting group that provides construction, maintenance and technical services for industrial, commercial and institutional clients in Massachusetts and Connecticut. Subsidiaries of WMH include B-G Mechanical Contractors, Inc. and B-G Mechanical Service, Inc.

William F. Hecht, chairman, president and chief executive officer of PP&L Resources, Inc., said adding WMH to the PP&L Resources family of companies is an excellent way for PP&L Resources to further expand its full-service energy business, which it is marketing under the PP&L EnergyPlusd brand.

"This acquisition solidifies our already significant presence in the robust New England energy market," Hecht said.

Hecht said the acquisition is expected to contribute to PP&L Resources' earnings in the first year.

WMH will be the fifth mechanical contracting and services firm joining the PP&L Resources family of companies, and the first headquartered outside of Pennsylvania. The others are: Burns Mechanical, Inc.; H. T. Lyons, Inc.; McCarl's Inc.; and McClure Company. The five companies bring combined annual revenues of more than $200 million to PP&L Resources.

Hecht said WMH, which has annual revenues of over $50 million, will retain its name and operate as a subsidiary of PP&L Resources, Inc. Robert W. Goeldner will continue as president of WMH, and Louis V. Coppi will continue as the company's chief financial officer.

As part of its New England strategy, a PP&L Resources subsidiary recently completed the acquisition of most of Bangor Hydro-Electric Company's electric generating assets in Maine and certain transmission rights in Canada. That subsidiary also is evaluating the development of a new gas-fired power plant in Wallingford, Conn., and another subsidiary is managing wholesale energy marketing, trading and risk management for Energy New England, which is the largest wholesale aggregator of public power system load and generation assets in the New England region.

"With the acquisition of WMH, PP&L Resources now offers an integrated and comprehensive portfolio of energy-management services that range from the design, construction, operation and ownership of energy infrastructure to the procurement of energy and on-site energy management," Hecht said. "WMH joins PP&L Resources' other mechanical services firms in working with PP&L Resources' energy services subsidiary to provide energy solutions to industrial, commercial and institutional customers throughout New England and the mid-Atlantic region. We can now offer these customers energy solutions that will reduce their operating costs while improving their facilities and infrastructure."

"We look forward to joining the PP&L Resources family of companies," Goeldner said, "and working closely with the outstanding mechanical contracting teams of Burns Mechanical, H. T. Lyons, McCarl's and McClure. This is a great opportunity for WMH, its customers, employees and the communities we serve as we expand the products and services that we can now offer while continuing our focus on providing customers with our traditional, high-quality mechanical services.

WMH, founded in 1991, is the parent of several subsidiaries, the oldest of which is B-G Mechanical Contractors, Inc., incorporated in 1956. Located in Springfield, Mass., WMH and its subsidiaries have other offices in Chicopee, Mass., as well as several locations in Connecticut. WMH employs 200 persons.

The terms of the purchase agreement were not disclosed. The closing of the acquisition, which is subject to the expiration of the antitrust waiting period and satisfaction of certain other closing conditions, is expected to occur in about a month.

See this home page for a special connection for more information on PP&L Resources' New England strategy.

Certain statements which are contained in this news release are "forward-looking statements" within the meaning of the federal securities laws. Although PP&L Resources believes that the expectations reflected in these statements are reasonable, there can be no assurance that these expectations will prove to have been correct. These forward-looking statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include risks and uncertainties normally associated with the mechanical contracting business, including increased costs applicable to construction contracts, continued ability to obtain construction contracts, and national or regional economic conditions. Any such forward-looking statements should be considered in light of such important factors and in conjunction with PP&L Resources' documents on file with the Securities and Exchange Commission. New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time to time, and it is not possible for PP&L Resources to predict all of such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. Any forward-looking statement speaks only as of the date on which such statement is made, and PP&L Resources undertakes no obligation to update the information contained in such statement to reflect subsequent developments or information.