EnerCare Inc. and EnerCare Solutions Inc. Announce Receipt of a Notice of Action

TORONTO, ONTARIO–(Marketwire – July 10, 2012) – EnerCare Inc. (TSX:ECI) and EnerCare Solutions Inc. (collectively, "EnerCare") today announced that EnerCare Inc. has been served with a Notice of Action from a competitor claiming unspecified damages based on allegations that EnerCare Inc., its service provider, EcoSmart Home Services Inc., and others engaged in unlawful surveillance activities aimed at tracking the door-to-door sales efforts of that competitor.

EnerCare takes this Notice of Action, and the allegations contained in it, very seriously, and has suspended the affected aspects of its program to combat attrition in its water heater rentals business; namely, its door-to-door customer awareness campaign, while it conducts an investigation of the allegations. It is important to note that, although Ene rCare has suspended this one element of its program to combat attrition, it continues to work hard to combat attrition and does not expect the suspension of this element of its program to materially affect its attrition levels over the long-term.

"I want to assure all of our stakeholders that EnerCare, our board and our executive officers believe in conducting our affairs with the utmost of integrity", said John Macdonald, President and Chief Executive Officer of EnerCare.

As this is an ongoing litigation matter, EnerCare does not intend to make further comment on this matter at this time.

About EnerCare and EnerCare Solutions.

EnerCare owns a portfolio of approximately 1.2 million installed water heaters and other assets, rented primarily to residential customers in Ontario. EnerCare also owns EnerCare Connections Inc., a leading sub-metering company, with metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.

Additional information regarding EnerCare is available on SEDAR at www.sedar.com or through EnerCare's website at http://investors.enercare.ca. Information on the sub-metering business is also available at www.enercareconnections.com.

Forward-looking Information

This news release contains certain forward-looking statements that involve various risks and uncertainties. Such forward-looking information reflects management's current beliefs and is based on information available to them and/or assumptions management believes are reasonable. Many factors could cause results to differ materially from the results discussed in the forward-looking information. Although the forward-looking info rmation is based on what management believes to be reasonable assumptions, EnerCare cannot assure investors that actual results will be consistent with this forward-looking information. All forward-looking information in this news release is made as of the date hereof. Except as required by applicable securities laws, EnerCare does not intend and does not assume any obligations to update or revise the forward-looking information, whether as a result of new information, future events or otherwise. A thorough discussion in respect of the material risks relating to the business and structure of EnerCare and EnerCare Solutions can be found in their respective current Annual Information Forms, which are available on SEDAR at www.sedar.com.


For further information:

EnerCare Inc.
Evelyn Sutherland
[email protected]