CoaLogix Receives $11.5 million Financial Backing

CoaLogix Receives $11.5 million Financial Backing


Charlotte, NC (April 14, 2009) CoaLogix, owned by Acorn Energy, Inc. (NASDAQ: ACFN), and EnerTech Capital, announced today that it has received over $10 million in new funding commitments. The commitments have been secured from Acorn Energy, Inc., EnerTech Capital Partners III LP, and the CoaLogix management team. This new capital will enable CoaLogix to execute its strategy of expanding its industry-leading holistic, environmental technologies for electric utilities, and continue to grow its US operations. The funding will also provide the company with the flexibility to consider expansions to enhance CoaLogix's facilities and capabilities.



CoaLogix has experienced remarkable revenue growth in the last four years of over 120%per year, CoaLogix's strong revenue growth has been driven not only by its patented ReGen process, but also advancements in its MetalliFix technology and NOxAssure program. MetalliFix is a sulfide based scrubber additive that binds with available heavy metals in the scrubber to create an insoluble and stable form of the metal. CoaLogix has performed pilot and full scale testing of MetalliFix at different utilities around the country. MetalliFix when added to a scrubber has been shown to remove 100% of the oxidized mercury and also remove greater than 50% of the elemental mercury from the flue gas. CoaLogix's NOx Assure program is a first of its kind, providing fast response catalyst inventory for the SCR systems in coal-fired power plants. CoaLogix's current inventory consists of enough plate, honeycomb and corrugated to supply, over 5,000 megawatts of coal-fired power plants, representing over $20,000,000 of "new v alue" to power plants. These catalyst are ready for regeneration and installation to meet specific customer needs.
Over $5 million will be used to fund expansion of SCR-Tech's regeneration capability. CoaLogix forecasts that the global regeneration and replacement market will grow significantly for the next several years. In response, CoaLogix has aggressively grown capacity to meet this demand. This funding will enable CoaLogix to fund future expansions, which will include opening new manufacturing facilities. CoaLogix is in discussions with various states to determine the best locations for the new facilities. The remainder of the funding will be used for R&D , development and protection of current and future technologies, and ongoing legal costs.
Bill McMahon (CEO of CoaLogix) commented, "We are pleased with Acorn and EnerTech's continued commitment to CoaLogix, especially in this financial environment. The funding will be used to meet our customers' needs, increase our production capabilities and further cut our costs going forward as well as provide capital to support our mercury remediation technology and other new technologies. We believe coal will continue to play a significant role in the growth of the US and economies around the world."
John A. Moore, CEO of Acorn Energy stated "Every year EnerTech looks at over 1,000 business plans and invests in only four companies on average. Investment is the sincerest form of flattery."
Scott Ungerer, Founder and Managing Partner of EnerTech Capital, says "It's exciting to see the power industry increasingly elect to embrace new technologies to lower the cost of production while improving the environmental profile of the generation facility. We're please to be working again with Acorn Energy in building a "category defining company", like we did at Comverge (NASDAQ: COMV)
About CoaLogix
CoaLogix is focused on providing cutting edge services to coal-fired generating facilities to reduce their environmental footprint thr ough technology, optimization and efficiency improvements. CoaLogix owns SCR-Tech which is a leading provider of selective catalytic reduction (SCR) management services and catalyst regeneration technologies used by coal-fired power plants to reduce nitrogen oxides (NOx) emissions. Currently, coal-fired power plants contain approximately $1 billion of catalyst in their SCR systems. CoaLogix also provides a technology named MetalliFixTM which captures and remediates mercury from coal-fired plants. MetalliFixTM provides a more cost effective solution, with lower capital, disposal and removal costs, than does activated carbon technologies. CoaLogix integrates leading-edge technologies, a highly-skilled workforce, and more than 100 years of combined experience in the environmental and power generation industries to provide innovative, cost-effective solutions that help our customers achieve and maintain compliance with increasingly stringent environmental regulations.
About Acorn Energy
Acorn Energy, Inc. is a publicly traded holding company with equity interests in CoaLogix, Comverge, Coreworx, DSIT and Gridsense. These companies leverage advanced technologies to transform and upgrade the energy infrastructure around the world. Acorn companies are focused on three problems in the energy sector: improving the efficiency of the energy grid, reducing the risk for owners of large energy assets, and reducing the environmental impact of the energy sector. Acorn's strategy is to take primarily controlling positions in companies led by great entrepreneurs. For more information visit http://www.acornenergy.com
About EnerTech
EnerTech Capital has been successfully investing in energy and clean energy technology companies since 1996. The Firm focuses on early to expansion stage ventures that dramatically improve the profitability of producing and consuming alternative and incumbent fuels and electricity. The company manages three funds totaling $380 million.
www.enertechcapital.com
Safe Har bor Statement:This press release includes forward-looking statements, which are subject to risks and uncertainties. These risks and uncertainties include competition in the market for catalyst and regeneration and possible adverse changes in governmental regulations affecting utilities' need for catalyst. For disclosure of additional risks and uncertainties which may affect CoaLogix's business and prospects and Acorn Energy, Inc.'s business generally, see the information under "Risk Factors" in Acorn Energy's most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K as filed with the Securities and Exchange Commission.
For more information about CoaLogix, call (704)827-8933, email info@CoaLogix.com. Or visit www.CoaLogix.com
Press Contact:
Lloyd SwaringerCoaLogixMarketing Manager(980)939-2905
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