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Electric City's Parke Industries Reduces Energy Costs for World Leading Auto Dealership Galpin Motors

Lighting Retrofit Project Results in Over $110,000 Annual Savings with Additional Savings Expected from Utilization of Electric City's Control and Monitoring Technologies

GLENDORA, Calif., July 27 -- Electric City Corp. (BULLETIN BOARD: ELCY) and its newest subsidiary Parke Industries today announced the recent completion of an energy efficiency lighting retrofit project for Galpin Motors, one of the world's largest automobile dealerships, which is expected to result in an annual reduction of more than a million kilowatt hours of electricity usage.

The upgrade project is expected to generate savings of $111,771 per year for five Galpin dealerships as a result of reduced electricity consumption, reduced lighting maintenance and utility rebates. The project is also projected to reduce annual electricity usage by 1,016,104 kilowatt hours from improved energy efficiency in lighting and cooler operating temperatures of lighting equipment resulting in reduced demand for air conditioning. These savings are a permanent removal of demand from the State of California's electrical system, thereby reducing total peak demand from the state's strained power systems. Galpin Motors is expected to recoup their investment in the lighting upgrade in approximately 13 months through the savings generated by the project.

"Galpin was a textbook example of how literally any car dealership can benefit from an energy efficiency lighting upgrade bringing together energy conservation, savings on the electrical bill and improved quality of light both in the showroom and on the grounds," stated Dan Parke President and Chief Operating Officer of Electric City Corp. "Galpin recognized this 'win-win' formula right out of the chute and we were pleased to be able to demonstrate the many benefits and savings associated with this type of an upgrade to today's state-of-the-art lighting products. In addition Galpin is proud of the fact that its energy savings will also immediately reduce the emission of greenhouse gases that accompanies the generation of electricity from fossil fuels. We estimate the implementation of this project will annually eliminate 1.8 million pounds of carbon dioxide which is a leading cause of global warming, 10 million grams of sulfur dioxide which is a leading cause of acid rain, 3.5 million grams of nitric dioxide which is a leading cause of smog and 740,000 pounds of coal," Parke concluded.

"We made the decision to upgrade to energy efficient lighting primarily because of the improved quality of light for our workers and customers, an excellent payback and being a good corporate citizen by reducing demand from the California power grid," stated Brad Boeckmann, Vice President of Galpin Motors. "While we are extremely pleased with the better light quality and dollar savings we expect to experience each year, we are very happy that our company made an environmentally conscious decision to help our state reduce emissions and demand from the California electricity system," Boeckmann concluded.

The massive upgrade installation included a total of five individual dealerships including the Van Nuys (Los Angeles County) 65 acre facility of Galpin Motors, Inc., home of Galpin Ford, the nation's largest Ford dealership for the past 16 years, and the nation's largest Jaguar dealership. Other Galpin dealerships in the lighting upgrade project included the additional brands of Lincoln, Mercury, Volvo, Aston Martin, Mazda, Saturn, and pre-owned vehicles.

Recently acquired by Electric City, Parke Industries is a Glendora, California energy services provider specializing in the design, engineering and installation of energy efficient lighting upgrades for commercial and industrial users. Parke Industries offers customers 20 years of experience in the energy efficiency business, enabling them to avoid operational expenses, thereby allowing them the ability to compete in today's economic climate. The company has been the recipient of numerous industry awards including recognition as the U.S. Environmental Protection Agency's "Green Lights Lighting Management Company Ally of the Year" -- the highest recognition a lighting management company can receive from the Green Lights Program.

"The Galpin project is just one example of Parke's many profitable projects and is indicative of why we acquired Parke Industries," stated David Asplund, CEO of Electric City. "Over the years, Parke has retrofitted over 700 million square feet of commercial and industrial space and has many satisfied customers. Parke is now beginning to work with Galpin and other customers to bring them additional energy savings as well as energy monitoring and control through the utilization of Electric City's lighting controller (EnergySaver(TM)) and Maximum Performance Group's HVAC Energy Management and Control (eMAC) technologies representing some of the expected synergies of the acquisition," concluded Asplund.

About Electric City

Electric City is a developer, manufacturer and integrator of energy savings technologies. Electric City is comprised of two integrated operating companies that bring their extensive experience and technologies together to provide customers with total energy solutions. Electric City is headquartered in Elk Grove Village, Illinois and is traded on the OTC Bulletin Board under the symbol ELCY. Additional information is available at the Company's website at http://www.elccorp.com/ or by calling 847-437-1666.

  Investor Relations
  Glen Akselrod, Bristol Capital Ltd.
  Telephone 905-326-1888
  E-mail glen@bristolir.com

  Media Relations
  Jeff Schenkel, South Coast Media Services
  Telephone (626) 339-8824
  E-mail:  southcoastmedia@compuserve.com

  Editors:  Digital pictures available upon request.

  FORWARD-LOOKING STATEMENTS

This news release includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements that reflect Electric City's current expectations about its future results, performance, prospects and opportunities. Electric City has tried to identify these forward-looking statements by using words and phrases such as "may," "expects," "anticipates," "believes," "intends," "estimates," "plans," "should," "typical," "preliminary," "work toward," or similar expressions. These forward-looking statements are based on information currently available to Electric City and are subject to a number of risks, uncertainties and other factors that could cause Electric City's actual results, performance, prospects or opportunities in the remainder of 2006 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include, but are not limited to those risks related to the Company's failure to complete some of all of the transactions described in this news release. Other risks are referenced in Electric City's current Annual Report on form 10-K or as may be described from time to time in Electric City's subsequent SEC filings.