Lime Energy Co. Reports Results for Three-Month Period Ended March 31, 2016

Lime Energy Co. (NASDAQ:LIME), a leader in designing and implementing
demand-side energy efficiency programs for utilities, today announced
its results for the three-month period ended March 31, 2016. “We have
positioned ourselves as a leading national provider of smart building
products and services to small and mid-sized businesses,” said Adam
Procell, Lime Energy President & CEO. “Our innovative intelligent
efficiency solutions help usher these customers into the clean energy
economy, while solving critical environmental challenges facing
utilities and their regulators.”

Results for the Three-Month Period ended March 31, 2016
(All
comparisons are to the first quarter of 2015)

• Consolidated revenue from continuing operations increased $4.8
  million, or 26.5%, to $23.1.
• Gross profit increased $1.4 million, or 26.2%, to $6.9 million. Gross
  profit margin decreased slightly from 30.1% to 30.0%.
• Selling, general and administrative expenses increased $4.2 million,
  or 72.2%, to $10.0 million. With the acquisition of EnerPath, our
  combined SG&A expenses as a percentage of revenue increased to 43.2%
  for first quarter 2016, as compared to 31.7% for the same period in
  2015.
• Net loss was $7.3 million, compared to net loss of $2.1 million for
  the first quarter of 2015.
• Basic and diluted loss per share increased from $0.25 to $0.80. The
  expenses related to Lime Energy’s 2013 restatement, stockholder
  lawsuits, SEC investigation, acquisition costs, and loss on
  extinguishment of debt contributed $0.25 and $0.24 to the basic and
  diluted loss per share for the three-month periods ended March 31,
  2016 and 2015, respectively.
• Adjusted EBITDA loss increased to negative $4.8 million compared to
  negative $2.0 million for the first quarter of 2015. As defined by the
  Company, Adjusted EBITDA includes acquisition costs, legal expenses
  related to our July 2013 restatement, stockholder lawsuits, SEC
  investigation, and loss on extinguishment of debt. Our Adjusted EBITDA
  excluding such expenses was negative $2.4 million for the first
  quarter of 2016, as compared to positive $222 thousand for the first
  quarter of 2015.*

* Please see the reconciliation of non-GAAP financial measures and
Regulation G disclosure later in this press release.

Business Highlights

• During the first quarter of 2016 we were awarded the small business
  energy efficiency program with Oncor in Texas, a new utility client.
• We were awarded the small business energy efficiency program with AEP
  Kentucky, a new utility territory for an existing client (we have been
  serving AEP Ohio since 2013).
• We were awarded the LADWP Commercial Direct Install Program under a
  re-compete, with expanded measures and customer eligibility.
• We deployed a new technology platform to manage the small business
  energy efficiency programs of NYSEG and RG&E in New York, which we
  were awarded late in 2015 under a re-compete.
• We expanded our team in Massachusetts to serve the Eversource small
  business energy efficiency program where we were awarded new
  territories for 2016.
• During the hold period prior to starting the new contract with LADWP,
  we utilized our LADWP team to serve the community in various volunteer
  initiatives. These included community gardens and clean-ups as well as
  working with at-risk youth in mentoring programs.

Reconciliation of Non-GAAP Financial Measures and Regulation G
Disclosure

We report our financial results in accordance with generally accepted
accounting principles (“GAAP”). However, from time to time, we use
certain non-GAAP financial measures in evaluating and discussing the
Company’s results and performance. We believe that these non-GAAP
measures supplement the readers’ understanding of our financial
performance by providing our stockholders and investors with additional
information to evaluate our operating performance using criteria used by
our management in evaluating our performance in comparison to prior
results.

As presented, Adjusted EBITDA excludes certain financial information
compared with net income (loss), the most directly comparable GAAP
financial measure. Below is reconciliation of Adjusted EBITDA to net
income (loss):

About Lime Energy Co.

Lime Energy is building a new energy future. As a leading national
provider of energy efficiency for utilities’ small business customers,
Lime Energy designs and implements direct install programs for its
utility clients which have consistently exceeded program savings goals.
Its award-winning, integrated services programs provide utilities with
reliable energy efficiency resources while delivering the highest levels
of customer satisfaction. This next generation approach is helping
utilities across the country to go deeper and broader with the cheapest,
cleanest and fastest energy resource that we have — energy efficiency.

Additional Information

Additional information regarding the results for the three-month period
ended March 31, 2016, is available in the Company’s Form 10-Q, which
will be made available on the Company’s website at www.lime-energy.com
and on EDGAR at www.sec.gov.

Conference Call Information

Lime Energy will host a conference call with investors today, May 13,
2016, at 4:30 p.m. ET to discuss these results which can be accessed as
follows:

North America: (866) 430-2032
International: (704) 908-0415
Passcode:
96934442

A live audio webcast will be available through Lime Energy’s Investor
Relations section of its website at http://www.lime-energy.com/investors/.

The webcast is also being distributed through the Thomson Reuters
StreetEvents Network. Institutional investors can access the call via
Thomson Reuters’ StreetEvents (www.streetevents.com),
a password-protected event management site.

FORWARD-LOOKING STATEMENTS

This press 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 Lime
Energy’s current expectations about its future results, performance,
prospects and opportunities. You can identify these forward-looking
statements by the use of words and phrases such as “may,” “expects,”
“anticipates,” “believes,” “intends,” “estimates,” “plans,” “should,”
“typical,” “preliminary,” “hope,” or similar expressions. These
forward-looking statements are based on information currently available
to Lime Energy and are subject to a number of risks, uncertainties and
other factors that could cause Lime Energy’s actual results,
performance, prospects or opportunities in the remainder of 2016 and
beyond to differ materially from those expressed in, or implied by,
these forward-looking statements. These risks and uncertainties are
described in Lime Energy’s most recent Annual Report on Form 10-K or as
may be described from time to time in Lime Energy’s subsequent SEC
filings; such risk factors are incorporated herein by reference.

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