EuroSite Power Closes $1.5M of New Common Equity in Fourth Quarter 2014

American DG Energy Inc. (NYSE MKT:

), a leading On‑Site Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, today announced that its subsidiary, EuroSite Power

, has closed $1.5 million of common equity during the fourth quarter of 2014. The common stock placement consisted of two arrangements with European investors priced at one share of common stock along with one three year warrant exercisable at $0.60 for a consideration of $0.50. For the fourth quarter 2014, these two transactions, coupled with the previously announced interest to equity and debt to equity swaps, are expected to increase the Total Consolidated Equity of American DG Energy by $9 to $9.5 million. American DG Energy, owns and operates combined heat and power (CHP) systems, chiller, heat pumps and boilers that are now producing energy in the form of domestic hot water, space heat and electricity. Customers only pay for the energy used at a guaranteed lower cost than that provided by local utilities and avoid all associated capital, installation, and operating costs. CHP systems are a cleaner energy option that offer significant environmental benefits. Heat that would otherwise be wasted by typical electricity production is captured and utilized as domestic hot water, space heat and electricity. Utilization of CHP systems greatly reduce carbon emissions output, sulfur dioxide output is nearly eliminated and nitrogen oxide emissions are dramatically reduced creating a greener environment. On-Site Utility American DG Energy sells the energy produced from an On-Site energy 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 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.