Commerce Energy Extends Exclusive Period of Negotiations With Universal Energy Group

  
    
  
  
    
      Commerce Energy Group, Inc. (AMEX:EGR) announced today it has extended 
      its period of exclusive negotiations to December 6, 2008 with Universal 
      Energy Group Ltd. (TSX: UEG) (UEG) in connection with a previously 
      announced potential sale of certain Commerce Energy assets to UEG and a 
      potential equity investment by UEG in Commerce Energy. The company said 
      the extension will allow time for discussions between the parties to 
      continue and for exploration of alternative structures.
    
    
      As a matter of policy, the company will not be issuing any further press 
      releases and will not be updating the market about the status of the 
      course of discussions or negotiations with UEG until such time as 
      further action on the part of the company is required, if at all, nor 
      will it comment upon any rumors with regard to the foregoing.
    
    
      Any proposed transaction may only be completed in accordance with 
      applicable state and federal laws. This press release shall not 
      constitute an offer or a solicitation of an offer to buy any securities 
      nor shall it constitute a solicitation of a proxy to vote with respect 
      to any transaction.
    
    
      If a shareholder vote is required in connection with any definitive 
      agreement entered into between the parties, Commerce Energy would intend 
      to file a proxy statement and other relevant documents concerning the 
      transaction with the Securities and Exchange Commission (SEC). 
      SHAREHOLDERS OF COMMERCE ENERGY ARE URGED TO READ THE PROXY STATEMENT 
      AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE FORM 
      8-K FILED IN CONNECTION WITH THIS NEWS RELEASE, WHEN THEY BECOME 
      AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and 
      security holders can obtain free copies of the proxy statement and other 
      documents if and when they become available by contacting the Corporate 
      Secretary of Commerce Energy Group, Inc., 600 Anton Boulevard, Suite 
      2000, Costa Mesa, California 92626, telephone [phone]. In 
      addition, documents filed with the SEC by Commerce Energy will be 
      available free of charge at the SEC’s web site at http://www.sec.gov.
    
    
      If the parties sign a definitive agreement, Commerce Energy and its 
      executive officers and directors may be deemed to be participants in the 
      solicitation of proxies from the shareholders of Commerce Energy in 
      favor of the transaction. Information about the executive officers and 
      directors of Commerce Energy and their ownership of Commerce Energy’s 
      common stock will be set forth in Commerce Energy’s proxy statement 
      which will be filed with the SEC. Certain directors and executive 
      officers of Commerce Energy may have direct or indirect interests in the 
      transaction due to securities holdings, pre-existing or future 
      indemnification arrangements, vesting of options, or rights to severance 
      or retention payments in connection with the transaction. Additional 
      information regarding Commerce Energy’s and the interests of its 
      executive officers and directors in the transaction will be contained in 
      the proxy statement regarding the transaction that will be filed by 
      Commerce Energy with the SEC.
    
    
      About Commerce Energy Group
    
    
      Commerce Energy Group is a leading independent U.S. electricity and 
      natural gas marketing company. Its principal operating subsidiary, 
      Commerce Energy, Inc., is licensed by the Federal Energy Regulatory 
      Commission and by state regulatory agencies as an unregulated retail 
      marketer of natural gas and electricity and serves homeowners, 
      commercial and industrial consumers and institutional customers. For 
      more information, visit www.CommerceEnergy.com.
    
    
      Forward-Looking Statements
    
    
      This press release contains forward-looking statements that are made 
      pursuant to the Safe Harbor Provisions of the Private Securities 
      Litigation Reform Act of 1995, particularly those statements regarding 
      the effects of the proposed transaction and those preceded by, followed 
      by or that otherwise include the words “believes,” “expects,” 
      “anticipates,” “intends,” “estimates,” or similar expressions. 
      Forward-looking statements relating to expectations about future results 
      or events are based upon information available to Commerce as of today’s 
      date, and Commerce does not assume any obligations to update any of 
      these statements. The forward-looking statements are not guarantees of 
      the future performance of Commerce and actual results may vary 
      materially from the results and expectations discussed. For instance, 
      although Universal Energy Group Ltd. has proposed the purchase of 
      certain assets and securities from Commerce, no definitive agreements 
      have been executed and there are no assurances that the transaction 
      initially proposed or any other transaction will be consummated.