World Energy Solutions, Inc. Files Lawsuit Alleging Fraud

    TAMPA and ST. PETERSBURG, Fla., March 16 /PRNewswire-FirstCall/ --
 World Energy Solutions, Inc. (OTC Bulletin Board:   WEGY) announced today
 that World Energy Solutions, Inc. ("WEGY" or the "Company") has commenced a
 lawsuit styled World Energy Solutions, Inc. v. David Weintraub, et al., No.
 06-8968- CI-20 (Cir. Ct. Pinellas Cty.) (the "Litigation"), against a
 Florida corporation and several individuals to recover damages and
 4,794,551 shares of Company common stock (the "Shares") issued in
 connection with the execution of consulting agreements and promises to
 perform future services for the benefit of the Company. The Company is
 suing Rajax, Inc., its principal, Rachel Steele and Daniel Witherspoon,
 III, as well as David Weintraub, Timothy Daley and Leslie Sands and has
 alleged various claims including fraud in the inducement, conspiracy to
 defraud and breach of contract. The Company contends in the Litigation that
 the recipients of the Shares have not given the consideration promised to
 the Company in exchange for such Shares.
     Pursuant to the Litigation, the Company will seek a judgment to rescind
 certain transactions involving the issuance of the Shares to Rajax, Inc.,
 Rachel Steele and her designees (including Shares issued to Steele's
 children at Weintraub's request under the Uniform Gift to Minors Act),
 Daniel Witherspoon and Leslie Sands and, provided the Company is successful
 in the Litigation, it will cancel all of the Shares. The Company is making
 an adverse claim against all of the Shares being represented by
 certificates numbered 4139, 5179, 5181, 5214, 5067, 5122, 5162, 5197, 4144,
 5065, 4145, 5066, 5220, 5226, 5109 and 5110. The Company has issued stop
 transfer instructions to its stock transfer agent regarding all of the
 Shares. Furthermore, the Company is hereby giving notice that it is
 asserting adverse claims against all Shares that may hereafter be presented
 to the Company's transfer agent by the Litigation defendants, their
 designees and any third party transferee.
     On March 1, 2007, Rachel Steele filed a civil action against the
 Company, styled Rachel Steele v. World Energy Solutions, Inc., No.
 07-002010-CI-20 (Cir. Ct. Pinellas Cty.), wherein she sought an injunction
 to allow her to sell certain quantities of the Shares (restricted
 securities) in public sale transactions pursuant to Securities and Exchange
 Commission Rule 144. The Company had previously advised Rachel Steele
 through its litigation counsel that the Company does not believe that the
 proposed sale of its common stock complies with the requirements of SEC
 Rule 144. On March 13, 2007, the Circuit Court in and for Pinellas County,
 Florida heard arguments on Rachel Steele's Motion For Temporary Injunction.
 The Court ordered that Steele's civil action be consolidated with the
 Litigation filed against her by the Company. The Court recognized that the
 Company's allegations of fraud are intertwined with issues relating to
 Steele's request for injunctive relief; that Steele's request for money
 damages is inconsistent with a claim for irreparable harm as required for
 injunctive relief; that additional time was needed for the parties to
 complete discovery; and accordingly, the Court declined to address the
 issues in Steele's motion at the hearing. The Company intends to vigorously
 pursue discovery in the Litigation, prosecute its claims for fraud,
 conspiracy to defraud and breach of contract against all defendants
 identified in the Litigation with a view toward obtaining a judgment for
 damages and to facilitate cancellation of all of the Shares.
     Forward-Looking Statements
     Certain matters discussed in this press release are 'forward-looking
 statements.' These forward-looking statements can generally be identified
 as such because the context of the statement will include words such as
 'expects,' 'should,' 'believes,' 'anticipates' or words of similar import.
 Similarly, statements that describe World Energy Solutions' future plans,
 objectives or goals are also forward-looking statements. Such
 forward-looking statements are subject to certain risks and uncertainties,
 including the financial performance of World Energy Solutions, which could
 cause actual results to differ materially from those currently anticipated.
 Although World Energy Solutions believes the expectations reflected in any
 forward-looking statements are based on reasonable assumptions, they cannot
 give any assurance that their expectations will be attained. Shareholders,
 potential investors and other readers are urged to consider these factors
 carefully in evaluating any forward-looking statements. Certain factors
 could cause results and conditions to differ materially from those
 projected in these forward-looking statements, and some of these factors
 are discussed below. These factors are not exhaustive. New factors, risks
 and uncertainties may emerge from time to time that may affect the
 forward-looking statements made herein. These forward-looking statements
 are only made as of the date of this press release and World Energy
 Solutions does not undertake any obligation to publicly update such
 forward-looking statements to reflect subsequent events or circumstances.
     CONTACT:
     World Energy Solutions, Inc.
     Paula Scott, Director of Investor Relations
     ir@wesinc.net (727) 525-5552
 
 

SOURCE World Energy Solutions, Inc.

SOURCE World Energy Solutions, Inc.

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