NY Fitness Facility Selects American DG Energy as Green Energy Provider

WALTHAM, Mass., June 30, 2011 /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, has reached an agreement to supply clean energy to Club Fit Jefferson Valley, a premier health and fitness facility located in Jefferson Valley, New York.  Under the terms of the agreement, Club Fit will soon receive a significant portion of its energy from a 100 kW combined heat and power (also called CHP or cogeneration) system, which will be owned and operated by American DG Energy.  Club Fit will receive a discount on the energy produced by the CHP system and reduce its carbon dioxide emissions by up to 367 tons per year.  The value of the agreement to the Company is $3 million.

American DG Energy will produce clean energy in the form of electricity, space heat and domestic hot water at Club Fit Jefferson Valley and sell it to the fitness facility at a price lower than the local energy utility.  Club Fit will pay only for the energy used by the facility and will avoid all capital, installation and operating costs.  The energy will be produced with small-scale, combined heat and power equipment, located at the property site but owned and operated by American DG Energy.  The Company will also handle all service, maintenance and repair; therefore, Club Fit will not need to provide manpower to support the equipment.

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, 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, as well as air pollutants like nitrogen oxides and sulfur dioxide, are reduced.  The CHP system planned for Club Fit is expected to reduce the property's emissions by up to 367 tons of carbon dioxide annually, the equivalent of removing the carbon emissions of 61 cars each year.*

*Figures were calculated using the EPA CHP Partnership emissions calculator.

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.