Carleton-Willard Village News MA Continuing Care Facility to Reduce Energy Costs and Carbon Footprint

September 09, 2009

MA Continuing Care Facility to Reduce Energy Costs and Carbon Footprint With an On-Site Utility by American DG Energy

WALTHAM, Mass., Sept. 9 /PRNewswire-FirstCall/ — American DG Energy Inc. (OTC Bulletin Board: ADGE), a leading On-Site Utility, offering clean electricity, heat, hot water and cooling solutions to healthcare, hospitality, housing and athletic facilities, today announced an agreement to supply energy to Carleton-Willard Village, a not-for-profit continuing care retirement community (CCRC), located in Bedford, Massachusetts. Under the terms of the agreement, Carleton-Willard, will soon receive a sizable portion of its energy from an On-Site Utility energy system, which will be owned and operated by American DG Energy. Carleton-Willard will receive a discount on the energy produced by the On-Site Utility and reduce its carbon footprint by up to 660 tons of carbon dioxide per year. The value of the deal is $2.2 million, which reflects the recent drop in energy prices.

American DG Energy will produce clean energy in the form of electricity, space heat and hot water at Carleton-Willard’s Nursing and Rehabilitation Center building and sell it to Carleton-Willard at a price lower than the local energy utility. Carleton-Willard will pay only for the energy they use and will avoid all capital, installation and operating costs. The energy will be produced with small-scale, combined heat and power (CHP) equipment, up to 150 kW, located at the property site but owned and operated by American DG Energy. Since the Company will also handle all service, maintenance and repair, Carleton-Willard will not need any manpower to support the equipment.

“I’m excited about the project and looking forward to its implementation,” said Paul Lund, Director of Facilities Management. “The energy cost savings will free-up funds in the budget while the impact on our carbon footprint pleases us as well as our residents, many of whom are concerned about the environment and want to be part of a community that does what it can to reduce its carbon footprint.”

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 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 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 Companys 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. John Hatsopoulos of American DG Energy, +1-781-522-6020