EGR Commerce Energy Grp.,

COSTA MESA, Calif., June 9 /PRNewswire-FirstCall/ -- Commerce Energy Group, Inc. (AMEX:EGR), a leading U.S. energy service provider, today announced that, along with its wholly-owned subsidiary Commerce Energy, Inc., it has entered into a $50 million credit facility with Wachovia Capital Finance Corporation (Western), a subsidiary of Wachovia Bank, National Association. The facility provides for the issuance of letters of credit related to the company's electricity and natural gas purchase activities and for loans for working capital and general corporate purposes. The availability of the three-year facility is subject to a defined borrowing base consisting of the majority of the company's cash, receivables and natural gas inventories. "This credit facility has been a key objective for the company," said Lawrence Clayton, Jr., chief financial officer. Mr. Clayton added, "In addition to a new business relationship with a major, nationally recognized bank, this new facility will more effectively allow for the use of our cash in support of our growth and expansion plans as they arise and will provide for a more transparent financial statement presentation of our cash and working capital positions." "We are pleased to have Wachovia as a strategic banking and business partner," stated Steven S. Boss, chief executive officer. Mr. Boss added, "The execution of this credit facility is an important step in our plans for expanding our market presence and increasing the number of customers we serve." About Commerce Energy Group, Inc. Commerce Energy Group, Inc. (AMEX:EGR) is a leading independent U.S. electricity and natural gas marketing company, operating through its wholly-owned subsidiaries, Commerce Energy, Inc. and Skipping Stone, Inc. Commerce Energy, Inc. is a FERC-licensed unregulated retail marketer of natural gas and electricity to homeowners, commercial and industrial consumers and institutional customers operating in nine states. Skipping Stone is an energy consulting firm serving utilities, pipelines, merchant trading and technology companies. For more information, visit http://www.commerceenergygroup.com/. Contacts: Commerce Energy Group, Inc. 600 Anton Boulevard, Suite 2000 Costa Mesa, CA 92626 Public Relations Linda Ames, Corporate Communications (800) 962-4655 Investor Relations PondelWilkinson Inc. Wade Huckabee / Cecilia Wilkinson (310) 279-5980 Forward-Looking Statements Except for historical information contained in this release, statements in this release, including those of Mr. Clayton and Mr. Boss, may constitute forward-looking statements regarding the company's assumptions, projections, expectations, targets, intentions or beliefs about future events. Words or phrases such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "targets," "will likely result," "will continue," "may," "could" or similar expressions identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. Commerce Energy cautions that while such statements are made in good faith and the company believes such statements are based upon reasonable assumptions, including without limitation, management's examination of historical operating trends, data contained in records, and other data available from third parties, the company cannot assure that its projections will be achieved. In addition to other factors and matters discussed from time to time in our filings with the U.S. Securities and Exchange Commission, or the SEC, some important factors that could cause actual results or outcomes for Commerce Energy Group, Inc. or its subsidiaries to differ materially from those discussed in forward-looking statements include: the uncertainties of litigation, arbitration or other dispute resolution procedures, the volatility of the energy market, competition, operating hazards, uninsured risks, failure of performance by suppliers and transmitters, changes in general economic conditions, seasonal weather or force majeure events that adversely effect electricity or natural gas supply or infrastructure, decisions by our energy suppliers requiring us to post additional collateral for our energy purchases, increased or unexpected competition, adverse state or federal legislation or regulation or adverse determinations by regulators, including failure to obtain regulatory approvals. Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, Commerce Energy Group, Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all such factors. DATASOURCE: Commerce Energy Group, Inc. CONTACT: Public Relations, Linda Ames, Corporate Communications of Commerce Energy Group, Inc. , +1-800-962-4655; or Investor Relations, Wade Huckabee, , or Cecilia Wilkinson, both of PondelWilkinson Inc., +1-310-279-5980, for Commerce Energy Group, Inc. Web site: http://www.commerceenergygroup.com/

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