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New York Co-op Selects American DG Energy As Green Energy Solutions Provider

American DG Energy Installs CHP and Chiller Systems at The Forest Hills

WALTHAM, Mass., Dec. 1 /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 agreements to provide green energy solutions to The Forest Hills, a 120-unit Co-operative, located in Queens, New York. In an effort to conserve energy and reduce costs, The Forest Hills has selected American DG Energy to install a 100 kW combined heat and power (CHP) energy system and a 200-ton natural gas engine driven chiller at their property. The value of the deals to American DG Energy is $2.81 million.

"American DG Energy has developed energy solutions, customized to our specific needs, which will enable us to reduce our energy costs and conserve energy, all with no risk to us," said David Englander, Vice President of The Forest Hills. "American DG Energy allowed us to upgrade our cooling system and replace an expensive, inefficient and insufficiently sized chiller with no ongoing equipment expenses. We were eager to deploy this solution and anticipate it will generate meaningful savings and help us achieve our primary goal of energy conservation. In addition, we benefit by having our entire plant operated and maintained by one firm."

American DG Energy is installing a new 200-ton natural gas engine driven chiller at The Forest Hills to replace its old steam chiller. The old steam chiller, which was original to the 45 year old building, cost The Forest Hills tens of thousands of dollars annually to maintain and was an inefficient provider of chilled water and space cooling for the property. The new 200-ton natural gas engine driven chiller, having greater capacity than the old chiller, will generate more chilled water. As a result, The Forest Hills will also be able to decommission two old steam boilers, already at the end of their useful life.

Instead of purchasing the new chiller, The Forest Hills opted for an On-Site Utility by American DG Energy. The Forest Hills will pay only for the energy it uses and will avoid additional operating costs. American DG Energy will handle all service, maintenance and repair. As a result, The Forest Hills will not need any manpower to support the equipment.

In addition to installing the chiller, American DG Energy is installing a 100 kW CHP system at The Forest Hills. The CHP system will provide green energy in the form of electricity and hot water for space heating and domestic hot water use. The Forest Hills opted to purchase the CHP system, but has selected American DG Energy to operate and maintain the system.

CHP, also called cogeneration, systems offer considerable environmental benefits when compared with purchased electricity and on-site-generated heat from a boiler. By capturing and utilizing heat that would otherwise be wasted from the production of electricity, CHP systems require less fuel than equivalent separate heat and power systems to produce the same amount of energy. Because less fuel is combusted, greenhouse gas emissions, such as carbon dioxide (CO2), as well as air pollutants like nitrogen oxides (NOx) and sulfur dioxide (SO2), are reduced.

Due to the high-efficiency of the energy systems installed, it is expected the carbon footprint of the property will be annually reduced by at least 350 tons of CO2, which is the equivalent amount of carbon dioxide absorbed by 70 acres of forest or emitted from 56 cars each year.

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.