Blue Earth and Castrovilla Successfully Complete Merger

HENDERSON, Nev., Jan. 20, 2011 /PRNewswire/ -- Blue Earth, Inc. (OTC Bulletin Board: BBLU) is pleased to announce that it has successfully closed its previously announced Letter of Intent (LOI) to acquire its first company, Castrovilla, Inc. Blue Earth's acquisition of Castrovilla is effective as of January 1, 2011 for $2.15 million payable in 1,279,762 restricted shares of Blue Earth common stock valued at $1.68 per share and $200,000 for debt retirement.

Founded in 2004 and based in Mountain View, California, Castrovilla had approximately $3.5 million in revenues in 2010, more than double its 2008 revenues. Revenues are forecasted to exceed $5 million in 2011 with EBITDA forecasts of over $700,000, which was the basis for the negotiation of the purchase price.

"We are pleased to join the Blue Earth family and are excited about the opportunities our partnering will bring," said Castrovilla's President John Pink. "We have grown our business steadily since its inception and have developed strong relationships with several Northern California utilities as well as with several thousand small business customers. Joining Blue Earth enables us to more rapidly expand our energy efficient retrofit services and will give our existing customers the opportunity to utilize the products and services from any future Blue Earth company."

Castrovilla has served over 6,000 small businesses and several utilities in Northern California with its 25 employees. Castrovilla participates in numerous utility ratepayer-funded energy efficiency rebate programs, one of which Castrovilla successfully developed for the utilities called "Keep Your Cool". For the small businesses, it performs energy audits and comprehensive commercial refrigeration efficiency upgrades in restaurants, supermarkets, refrigerated warehouses and other businesses, saving its customers tens of millions in utility expenses.

"The acquisition of Castrovilla establishes our market presence in the energy efficiency services sector and brings a rapidly growing company to the Blue Earth family," said CEO Dr. Johnny R. Thomas. "It provides Blue Earth with seasoned business developers, important relationships with utilities and a large customer base that includes regional and national companies."

The Blue Earth strategy is to sell lighting and Heating, Ventilation and Air-Conditioning (HVAC) bundled retrofits to the Castrovilla customer base, as well as to any additional acquisitions specializing in these areas that become Blue Earth family members.

"Management's primary acquisition efforts are currently focused on completion of due diligence of one potential acquisition candidate which has an innovative software platform. The importance, size and complexity of this opportunity justifies a more deliberate pace on other potential acquisitions while the Company completes its evaluation of this exciting opportunity," said Dr. Thomas.

About BBLU

BBLU is engaged in the clean technology industry with a primary focus on the energy efficiency, water and wastewater sectors. We strive to participate in the global movement for a sustainable planet by offering products and services that will optimize energy use, reduce harmful environmental emissions and substantially reduce energy costs to our customers. For more information about Blue Earth, Inc., please visit www.blueearthinc.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These statements relate to future events or to the Company's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements.

Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Such risks, uncertainties and other factors which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

SOURCE Blue Earth, Inc.