Fisher Scientific To Participate In Electric City VNPP Development For ComEd

Electric City (Amex: ELC) announced today that it has entered into an agreement with Fisher Scientific International Inc. to participate in the Company's development of a 50-Megawatt power curtailment system for Commonwealth Edison ("ComEd") in northern Illinois. The agreement initially covers Fisher Scientific's 325,000 square foot Hanover Park distribution center which provides logistics and warehousing services within the Midwestern States.

Under the terms of the Agreement, Electric City expects to install several EnergySaver systems at this distribution center. As a result, Fisher Scientific will receive free steady state energy savings and remote control over their lighting systems while helping to improve the environment and assisting the local electric utility, ComEd, on peak demand days. Fisher Scientific is a leading provider of products and services to the scientific community and is a Fortune 500 company and a component of the S&P 500 Index.

"We are delighted to work with Fisher Scientific and are extremely pleased that they have decided to work with Electric City and our flagship Virtual "Negawatt" Power Plan (VNPP(R)) development program," stated John Mitola, CEO of Electric City. "Fisher Scientific becomes the most recent national leading customer to sign up for participation in our utility based demand response VNPP program for ComEd. Similar to our other leading national and international customers, Fisher Scientific brings us great potential reach and load aggregation in many other electricity markets across North America.

"Our business model and growth strategy is based on our ability to quickly and efficiently gain access to large national government, commercial and industrial customers through our utility sponsored, VNPP programs. These programs provide customers with free technology, enabling customers to make a quick participation decision to save money and energy while contributing to the local community and national energy interests," continued Mitola. "The VNPP option enables participating customers to bypass internal capital budgets, purchasing oversight, technology review and many other corporate hurdles that limit the use of new business solutions. The VNPP, in effect, becomes our gateway to long term successful relationships with large national companies. We fully expect that this strategy will allow us to quickly scale customers into national VNPP agreements, shared savings and direct purchase options directly or through other utility sponsored programs as recently evidenced. In addition, it will allow for cross selling opportunities for all of our multi-line energy reduction solutions including Maximum Performance Group's ('MPG') eMAC and uMAC HVAC technology and Great Lakes, building automation and controls."

In line with this strategy, Electric City continues to sign up customers like Fisher Scientific, Nissan, Heinz, Westfield Group, Dean Foods, Galyans, Home Depot and other national leading organizations for participation in its VNPP programs. Consistent with this strategy, the Company has also seen several national customers opt for additional energy savings with the direct purchase of EnergySaver and eMAC systems in areas where Electric City does not have a VNPP development underway. While Electric City continues development of current VNPP projects in Chicago and St. Lake City and an initial pilot project with Enersource in Ontario, Canada, its customers are able to also participate in more traditional utility rebate programs the Company has been approved for with the New York State Energy Research and Development Authority (NYSERDA), Long Island Power Authority (LIPA), NSTAR in Boston, Massachusetts and the Energy Trust of Oregon.

"Increased energy costs are causing companies to study and embrace energy efficiency and conservation efforts like never before," continued Mitola. "The reality of rising oil prices, rising gas prices, transmission line constraints and aging electricity infrastructure will certainly mean that electricity prices will continue to rise. Large scale national corporations are beginning to look for enterprise wide energy reducing solutions as part of their respective cost saving strategy," concluded Mitola.

Electric City's Demand Response system, called Virtual "Negawatt" Power Plan (VNPP), will allow utilities, like ComEd in Chicago and PacifiCorp in Utah, to remotely control a wide range of commercial, industrial and government lighting systems over a managed and secure IP network. Through the use of the EnergySaver/GlobalCommander system, any participating utility will be able to reduce electric capacity requirements during periods of peak demand, providing nearly instantaneous control, measurement and verification of load reduction. It is believed that once completed, the 50 MW system in Chicago will represent one of the largest deployments of demand control technology in the nation and is expected to incorporate up to roughly 1,200 to 1,500 EnergySaver systems.

The Virtual "Negawatt" Power system agreement with ComEd in Chicago calls for the wide scale deployment of EnergySaver units resulting in up to 50 Megawatts of demand load reduction. Electric City will act as the provider of technology and the developer of the power system. The cost of the system will be borne by third party investors, supported through a long-term agreement with ComEd. Electric City will guarantee the delivery of peak power reduction through its EnergySaver/GlobalCommander system and will dispatch the system at the direction of ComEd. In exchange for hosting the system and allowing remote control over peak demand, customers will receive the technology for free and will receive free steady state energy savings. In addition to the ComEd system, Electric City is currently working on a 27 MW VNPP for PacifiCorp in Utah and a pilot system for Enersource in Ontario. The Company is also pursuing opportunities to develop similar systems in other higher cost electricity market areas across the U.S.

Customers interested in participating in VNPP systems, and specifically in Chicago, Salt Lake City and Ontario, Canada, can visit the Company's website at http://www.elccorp.com or contact Electric City at (847) 437-1666.

About Electric City
Electric City is a leading developer, manufacturer and integrator of energy savings technologies and performance monitoring systems. Electric City is comprised of three integrated operating companies that bring their extensive experience and technologies together to provide customers with total energy solutions. With thousands of customer installations across North America, Electric City has been reducing customers' operating costs for over 20 years. By linking our customers' sites, Electric City is developing large- scale, dispatchable, demand response systems we call Virtual Negawatt Power Plan. The Company is developing its first VNPP development -- a 50-Megawatt negative power system for ComEd in Northern Illinois, a second 27-Megawatt system with PacifiCorp in the St. Lake City area, and a pilot program in Ontario, Canada with Enersource. Electric City is based in Elk Grove Village, Illinois and is traded on The American Stock Exchange under the symbol ELC. Additional information is available at the Company's website at http://www.elccorp.com or by calling (847) 437-1666.