American DG Energy Generates Clean Energy at Penacook Place

HAVERHILL, Mass., Oct. 22 /PRNewswire/ — American DG Energy Inc. (OTC Bulletin Board: ADGE), a leading On-Site Utility, offering clean electricity, heat, hot water and cooling systems, today announced it is now generating clean, low-cost energy at Penacook Place, an independent not-for-profit nursing and rehabilitation facility, located in Haverhill, Massachusetts. The energy is produced with a 75 kW On-Site Utility energy system, which Penacook did not need to buy or finance. The Company estimates Penacook will save $120,000 over the fifteen-year agreement and reduce its greenhouse gas emissions by 306 tons of CO2 gas each year.

“We could not have afforded this highly-efficient energy system without American DG Energy,” said Julian Rich, President & CEO of Penacook Place. “Not needing to finance this project made it possible.”

With its On-Site Utility, American DG Energy produces clean energy in the form of electricity and space heating at Penacook Place and sells it to Penacook at a price lower than the local energy utility. Penacook pays only for the energy they use and avoids all capital, installation and operating costs. American DG Energy handles all service, maintenance and repair. Penacook will not need any manpower to support the equipment.

Additionally, the On-Site Utility installed at Penacook Place will significantly lower Penacook’s greenhouse gas emissions; it could offset as much as 306 tons of CO2 gas each year, the equivalent of planting 83 acres of trees or eliminating the emissions of 52 cars.

On-Site Utility

American DG Energy sells the energy produced on-site from a combined heat and power (CHP) system to an individual property as an alternative to the outright sale of energy equipment. On-Site Utility customers only pay for the energy produced by the CHP system and receive a guaranteed discount rate on the price of the energy. All system capital, installation and operating expenses are paid by American DG Energy. All system installation, operation and support are handled by the Company as well.

About American DG Energy

American DG Energy (BULLETIN BOARD: ADGE) 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. American DG Energy is headquartered in Waltham, Massachusetts. More information can be found at http://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 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 web site 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.

American DG Energy Inc.

CONTACT: John Hatsopoulos of American DG Energy, +1-781-522-6020

Web Site: http://www.americandg.com/