YMCA Selects American DG Energy as Green Energy Supplier

WALTHAM, Mass., May 18 /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, has reached an agreement to supply clean energy to Sterling Center YMCA, a branch of the North Shore YMCA located in Beverly, Massachusetts.  Under the terms of the agreement, the Sterling Y, will soon receive a significant portion of its energy from a 75 kW combined heat and power (also called CHP or cogeneration) system, which will be owned and operated by American DG Energy.  Sterling Y will receive a discount on the energy produced by the CHP system and reduce its carbon emissions by up to 330 tons per year.  The value of the agreement to the Company is $2 million.

American DG Energy will produce clean energy in the form of electricity, space heat, hot water and pool heat at the Sterling Center YMCA and sell it to the Sterling Y at a price lower than the local energy utility.  The Sterling Y 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, the Sterling Y will not need to provide manpower to support the equipment.

"We are trying to be more sustainable, more energy conscious and 'green' as an organization.  Our 'green team,' which helps determine how we can achieve our environmental goals, considered many measures for energy conservation," said Jack Meany, CEO of North Shore YMCA.  "After revisiting cogeneration, as provided by American DG Energy's On-Site Utility energy solution, we have determined that it was a viable option for conservation and cost reduction."

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 Sterling Y is expected to reduce the property's emissions by up to 330 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.