American DG Energy Announces Formation of EuroSite Power Inc.

WALTHAM, Mass., July 12 /PRNewswire-FirstCall/ -- American DG Energy Inc. (NYSE Amex: ADGE), a leading OnSite Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, is pleased to announce the formation EuroSite Power Inc., a subsidiary of American DG Energy Inc. formed to introduce the On-Site Utility solution into the European market.

European markets are more mature and proactive in energy efficiency and are actively seeking energy savings via environmentally friendly technologies due to various mandates.  Furthermore the availability of capital is still very tight and our no cost, no responsibility, no risk, just savings solution might be the perfect fit.  EuroSite Power will primarily target countries such as the United Kingdom, Spain and Belgium that have large urban markets with a high local density of target customers with large buildings in major cities (hotels, healthcare, large multi-family residential, etc.) and then expand from there to the rest of Europe.

"The funding for EuroSite Power, our new subsidiary, will be provided by issuing equity or debt in that new entity in the range of $3 to $10 million over the course of the next few months and all funds raised will be used to fund EuroSite Power exclusively," said John Hatsopoulos, CEO of American DG Energy.

This press release does not and shall not constitute an offer to sell or the solicitation of any offer to buy any of the securities, nor shall there be any sale of the securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any state.

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.