On-Site Utility Energy System To Reduce Energy Costs With No Capital Investment

WALTHAM, Mass., Nov. 3 /PRNewswire-FirstCall/ -- American DG Energy Inc. (NYSE-Amex: ADGE), a leading On-Site Utility, offering clean electricity, heat, hot water and cooling solutions to healthcare, hospitality, housing and athletic facilities, today announced a 15-year agreement to supply low cost, clean energy to Linden Plaza Preservation LP, a 1,500-unit, low-income housing complex, located in Brooklyn, New York. Under the terms of the agreement, Linden Plaza, will soon receive a substantial portion of its energy from a 500 kW On-Site Utility energy system, which will be owned and operated by American DG Energy. Linden Plaza will receive a discount on the energy produced by the On-Site Utility and reduce its carbon footprint by up to 2,400 tons of carbon dioxide per year.

"The 35-year-old complex, which consists of five 18-story buildings, was in need of significant upgrades," said Alan Sullivan, Representative for the General Partner of Linden Plaza Preservation LP. "We were interested in reducing our energy costs, but with an extremely tight budget and several other projects to fund, finding the cash to purchase a new energy system would have been difficult. With American DG Energy, we will get the new system Linden Plaza needs with no capital investment and still save money on our energy costs."

With its On-Site Utility energy solution, American DG Energy will produce clean energy in the form of electricity and heat for domestic hot water and sell it to Linden Plaza at a price lower than their local utility. Linden Plaza will pay only for the energy they use and will avoid all capital, installation and operating costs. Since American DG Energy will also handle all service, maintenance and repair of the energy system, Linden Plaza will not need any manpower to maintain the equipment.

The energy will be produced with small-scale, combined heat and power (CHP) equipment, located at the property site but owned and operated by American DG Energy. Each of the five towers will have one 100 kW CHP unit. Since the CHP equipment has a combined efficiency of nearly 90%, the system will reduce Linden Plaza's carbon footprint by up to 2,400 tons of carbon dioxide per year.

On-Site Utility

American DG Energy sells the energy produced on-site from a combined heat and power (CHP) system to an individual property as an alternative to the outright sale of energy equipment. On-Site Utility customers only pay for the energy produced by the CHP system and receive a guaranteed discount rate on the price of the energy. All system capital, installation and operating expenses are paid by American DG Energy. All system installation, operation and support are handled by the Company as well.

About American DG Energy

American DG Energy supplies low-cost energy to its customers through distributed power generating systems. The Company is committed to providing institutional, commercial, and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by local utilities - without any capital or start-up costs to the energy user - through its On-Site Utility energy solutions. American DG Energy is headquartered in Waltham, Massachusetts. More information can be found at www.americandg.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company's website and in Securities and Exchange Commission filings. This press release does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

SOURCE American DG Energy Inc.

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http://www.americandg.com