Cogeneration System Now Operating at North Hill

Independent Living Community Receives Energy Producing Equipment at No Cost

Oct 28, 2010, 09:00 ET from American DG Energy Inc.

NEEDHAM, Mass., Oct. 28 /PRNewswire/ -- 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 now operating a cogeneration system at North Hill, an independent living community in Needham, Massachusetts.  The Company estimates the total revenue from this project to be $1.4 million over the fifteen-year agreement.

Through its On-Site Utility energy solution, American DG Energy generates clean energy in the form of electricity, space heat and hot water at North Hill and sells it to the facility at a price lower than the local energy utility.  North Hill pays for the energy used by the property and avoids all capital, installation and operating costs.  The energy is produced with a 75 kW cogeneration system, located at the property site but owned and operated by American DG Energy.  Since the Company also handles all service, maintenance and repair, North Hill does not need any manpower to support the energy equipment.

North Hill's Director of Plant Services, Harry Goodale, has been working endlessly to reduce utility cost by analyzing North Hill's efficiency mix throughout the 500,000 plus square foot campus.  The location selected for the natural gas powered cogeneration system is that which generates the highest demand for electricity and hot water - the building containing the skilled nursing facility, commercial laundry and main kitchen.

"Since the cogeneration system began running in August, I have walked by our five 150 gallon hot water heaters and 1.5m btu boilers many times and not once have I heard them kick on," said Mr. Goodale.  "Also, with no capital investment and all the maintenance provided by American DG Energy, it's a homerun any way you look at it."

Cogeneration, also called combined heat and power or CHP, 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, Cogeneration 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, as well as air pollutants like nitrogen oxides and sulfur dioxide, are reduced.

Due to the high-efficiency of the cogeneration system installed at North Hill, American DG Energy estimates the emissions of the property will be reduced by 225 tons of carbon dioxide 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.



RELATED LINKS

http://www.americandg.com