Nissan North America to Participate in Electric City VNPP Development for ComEd

Automotive Company to Participate with 275,000 Sq. Ft. Aurora, IL Distribution Center

ELK GROVE, Ill., Sept. 14 -- Electric City (AMEX:ELC) announced today that it has entered into an agreement with Nissan North America, 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 Nissan's 275,000 square foot Aurora, Illinois distribution center. Nissan is one of the world's leading auto manufacturers, with facilities throughout the world and the United States.

Under the terms of the Agreement, Electric City expects to install several EnergySaver(TM) systems at the Aurora Distribution Center. As a result, Nissan 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.

"We are extremely pleased to announce the participation of Nissan in our VNPP development," stated John Mitola, CEO of Electric City. "As one of the world's leading car manufacturers, they represent one of our latest major corporations to participate in our innovative VNPP program. They bring us great reach and potential load aggregation across our target markets. Signing up large customers like Nissan and aggregating their load pockets, gives us greater strength as we begin to develop VNPP systems across North America. Nissan joins a growing list of national customers who have agreed to participate in our VNPP development. At a time when the United States and our economy face yet another spike in energy prices, our utility buyers and these customers are taking steps to reduce demand in an elegantly simple, yet innovative manner."

Electric City's Demand Response system, called Virtual "Negawatt" Power Plan (VNPP(R)), 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(R) 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. The 50 MW system in Chicago is believed to 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, Denver 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(R) 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.