Investor Presentation

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Investor Presentation

• July 2007

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Forward Looking Statements

• This Power Point presentation 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. Lime
  Energy has tried to identify these
  forward-looking statements by using words and
  phrases such as "may," "expects," "anticipates,"
  "believes," "intends," "estimates," "plan,"
  "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 2007 and beyond to differ materially
  from those expressed in, or implied by, these
  forward-looking statements. These risks are
  referenced in Lime Energy's current Annual Report
  on form 10-K or as may be described from time to
  time in Lime Energy's subsequent SEC filings and
  such factors as incorporated by reference.

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The Perfect Storm

• Rising electricity costs
• Rising energy costs
• Rising demand
• Rising supply constraints
• Rising regulatory demands
• Rising concern over global warming
• Is creating the Perfect Storm for
• businesses nationwide

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Electric Bills to Soar
Chicago Tribune 6.16.06

• Competitive Era Fails to Shrink Electric Bills
  New York Times 10-16-06
• According to Edison Electric Institute, there
  are more electric rate increase requests pending
  now than ever before
• North American Electric Reliability Council warns
  demand for electricity is increasing 3X faster
  than resources are being added
• Jim Rogers, CEO of Duke Energy which is one of
  the largest shareholders of Lime Energy, calls
  energy efficiency the fifth fuel meaning an
  alternative to coal, natural gas, hydropower and
  nuclear fuel Wall Street Journal 10-16-06

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Utility Incentives

• Each year, billions of dollars are made available
  by utilities, government agencies and other
  sources for energy efficiency improvements to
  buildings
• We have 26 categories of rebates and incentives
  in our database including lighting, HVAC,
  controls, roofing, load curtailment, water
  heating, energy audits, low-cost financing and
  many more
• To date, have secured over 30 million in energy
  rebates for customers

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Energy Policy Act of 2005

• Provides building owners a tax deduction up to
  0.60/square foot off their federal taxes for the
  installation of energy efficient lighting systems
• Additional tax benefits can be achieved from
  energy efficient upgrades to the HVAC/hot water
  system capped at 1.80/square foot.
• Tax benefits expected to continue through
  December 31, 2008

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Who Are We?

• Newly formed publicly traded company in June 2006
  trading under the symbol LMEC
• A world class sales marketing organization with
  unique services and proprietary technologies to
  reduce energy consumption
• 75 years combined experience in energy
  conservation and management having upgraded over
  1 billion square feet of building space saving
  customers over 4 billion kilowatt hours of
  electricity and 450 million in operating
  expenses

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What Do We Do?

• Design, engineer and install energy saving
  solutions which
• Provide guaranteed financial results with high
  returns on investment and quick paybacks
• Reduce direct operating expenses
• Improve work space and productivity
• Enhance value of facility
• Reduce greenhouse gases which are the cause of
  global warming

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Who Do We Do It For?
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Market Analysis

• Total market for energy saving products and
  technologies for just lighting and HVAC system is
  estimated to exceed 200 billion
• Lighting accounts for up to 40 of a typical
  commercial buildings cost
• Estimated 62 billion square feet of commercial,
  industrial and institutional buildings in the
  United States for retrofit opportunity
• Approximately 3 billion light fixtures nationwide
  that will benefit from energy efficient upgrades
  and retrofits
• HVAC accounts for up to 30 of a typical
  commercial buildings cost
• Estimated 23 million rooftop heating and cooling
  units applicable for eMAC application

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Market Drivers

• Market expected to have double digit growth over
  many years. Key drivers are
• Energy shortages
• Federal and state regulatory mandates to conserve
  energy
• Boulder, CO voters pass first energy tax in the
  nation
• Utility, state and federal incentives
• Consumer awareness and desire to reduce energy
  consumption and energy costs
• Americas awareness and desire to reduce
  greenhouse gas emissions the leading cause of
  global warming

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Engineering Services

• Energy Procurement and Efficiency Audits
• Energy Master Plans
• Technical Financial Analysis
• HVAC System Optimization
• Cogeneration
• Solar Generation
• Measurement, Verification Monitoring
• Demand Response
• Rebate Procurement

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Unique Services

• E-Commissioning This term, coined by Lime
  Energy, refers to energy-commissioning, or
  re-commissioning an existing facility from an
  energy standpoint. E-Commissioning usually
  results in fast payback measures and offers a
  good first impression to the client. To date,
  Lime has e-commissioned facilities for Washington
  Mutual Bank, Goldman Sachs, PepsiCo and San Diego
  Gas and Electric.
• Energy Accounting/Landlord-Tenant Dispute
  Resolution Lime has helped many clients resolve
  energy billing disputes by analyzing the utility
  bill structure and performing end-use allocation
  and simulation studies. Clients include Parsons
  Brinkerhoff, American Express, Lehman Bros,
  Vornado Realty and Bally Total Fitness
• EnergyStar and LEED Certification Lime has
  registered several clients with the EPAs energy
  initiatives, and helped clients improve their
  scores through analysis and recommendation of
  energy conservation measures

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Benefits of Engineering Services

• Our Total Energy Analysis approach enables
  clients to contract for step-by-step,
  pay-as-you-go services
• Engineering fee-for-services provides us first
  look at the potential for large turn-key
  installations without risking the costs of the
  discovery phase
• 60 of our engineering services result in
  additional engineering work or an implementation
  contract
• 40 of our engineering contracts are renewed for
  similar work at clients other facilities

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Case Studies

• Washington Mutual Bank Contracted to conduct
  investment grade audits, sub-contractor bid
  management, equipment procurement, rebate
  procurement and construction management for all
  sites. Contract led to upgrading indoor and
  outdoor lighting at over 2,300 sites in twenty
  states.
• ABC TV Performed preliminary energy analyses for
  over 2 million square feet of ABC TVs
  mid-Manhattan facilities. Our audits resulted in
  opportunities to save over 1 MW of peak demand
  and over 6 million kWh of energy.
• Bally Total Fitness In 2006, we provided
  lighting upgrades to our 105th Bally Fitness
  Center. All 105 projects have been financed by
  Lime Energy resulting in net positive cash flow
  and total savings of over 2.4 million, and over
  450,000 in utility rebates

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Energy Efficient Lighting Services

• Investment Grade Lighting Audit
• Technical Financial Analysis
• Turnkey Lighting Upgrades
• Lighting Controls
• Project Construction Management
• Project Financing
• Rebate Procurement

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Benefits of a Lighting Upgrade

• Dramatic Savings - Up to 65
• Generous Utility Incentives - Up to 50
• Tax Advantages - Up to 0.60/sq ft
• Quick Payback Periods Less than 2 years
• Enhanced Lighting Quality
• Eliminated Lighting Maintenance
• Lower Cooling Costs
• Increased Asset Value

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Case Study

• Ferguson is one of the largest distributors of
  plumbing supplies and HVAC equipment in the
  United States. They upgraded their lighting
  system in their San Diego facility with the
  following results
• First Year ROI 76
• Payback Period 1.4 Years
• Energy Utility Rebate 34,331.72
• Annual Electric Savings 81,540.56

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Energy Efficient HVAC Technology

• eMAC reduces energy while keeping the AC on
• Multiple units tied together thru internet
• Improves performance and provides remote control
• Monitors over 140 points of operation providing
  recurring revenue

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Benefits of eMAC

• Dramatic Savings Up to 35
• Reduced Maintenance Calls Up to 30
• Reduced Maintenance Expenditures
• Increased Energy Asset Life
• Improved Energy System Management
• Special utility incentive from PacifiCorps Rocky
  Mountain Powers HVAC Energy Efficiency Alliance
  in Utah for up to 30 of project cost

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Monitoring and Diagnostics

• Over 140 points of data are analyzed to trouble
  shoot HVAC problems via the internet
• System Alarms automatically sent to assigned
  customer personnel as well as our eMAC center
• Lime HVAC Techs ascertain if there is a real or
  perceived problem
• If problem exists, electronic service ticket
  created and sent to preauthorized HVAC service
  personnel or contractors insuring 100 completion
  and accountability
• Monthly monitoring fee provides constant
  interaction with client and recurring revenue for
  Lime

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Case Study

• Major national bank has deployed over 700 eMAC
  units in over 300 branches in the Northeast
• Return on Investment 50
• Payback Period 2 years
• Energy Utility Rebate 625,000
• Annual Energy Savings 3.1 million

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Lime Energy Sales Model

• Established and proven sales design over 26 years
• Extensive sales training and education
• Target key decision makers including building
  owners, CEOs, CFOs
• Proposals based on sound business and financial
  value propositions
• Stress added benefit of green energy
• Provide extended payment plan

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The Greenest Energy Is Energy Not Used

• Reducing energy use is the quickest, safest, most
  cost-effective way to reduce the emission of
  greenhouse gases.  A recent lighting retrofit
  project for one of the worlds largest automobile
  dealerships provided an annual savings of over 1
  million kWh of electricity saved which equate by
  our calculation to annual savings (or
  elimination) of
• 1.8 million lbs of Carbon Dioxide
• the leading cause of Global Warming
• 10 million grams of Sulfur Dioxide
• the leading cause of Acid Rain
• 3.5 million grams of Nitric Dioxide
• the leading cause of Smog and Acid Precipitation
• 740,000 lbs of Coal Not Burned per Year

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Customer Financing

• Lime Energy offers monthly installment payment
  options which can result in
• Monthly payments LESS THAN monthly energy savings
• No capital outlay
• Immediate net positive cash flow
• Infinite return on investment

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Financials
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Company Snapshot as of 3.31.07

• Ticker Symbol (LMEC) on OTC BB
• Shares Issued and Outstanding 53,566,100
• Cash 2,976,176
• Debt 532,201
• Stockholder Equity 16,492,633
• Approximate Insider Ownership 44
• April 1, 2007 raised 2,999,632 in a Shareholder
  Rights Offering at 1 per share
• May 25, 2007 raised 5,000,000 in a 10
  subordinated term note convertible at 1 per
  share
• June 6, 2007 acquired Texas Energy Products

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Use of Proceeds

• Working Capital
• Hiring Additional Salespeople
• Training Salespeople
• Customer Financing
• Future Acquisitions

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Acquisition Strategy

• Adding acquisitions, at relatively low multiples,
  will round out our technology and services
  portfolio as well as sales and distribution
  channels
• Potential targets will include those with a clear
  strategic fit which will give us an edge in the
  marketplace such as
• enhanced channels to market
• cutting-edge technologies
• geographic positioning

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Management

• David R. Asplund Chief Executive Officer
  David R. Asplund has been one of our directors
  since June 2002 and has been our Chief Executive
  Officer since January 2006. Prior to becoming CEO
  of Lime Energy, Mr. Asplund was President of
  Delano Group Securities, LLC, an investment
  banking firm in Chicago, Illinois, which he
  founded in 1999. Prior to founding Delano, Mr.
  Asplund was a Senior Managing Director of Bear
  Stearns and Branch Manager of their Chicago
  office. Prior to joining Bear Stearns, he held
  positions with Morgan Stanley and Lehman
  Brothers. Mr. Asplund is also a Director of
  AgeNet, Inc., a private corporation operating a
  national eldercare network and Managing Member of
  Augustine Capital Management, LLC, an advisor to
  a private equity fund. Mr. Asplund is a past
  Chairman of the Securities Industry Association
  Central States District and is a member of the
  Board of Arbitrators for the National Association
  of Securities Dealers. Mr. Asplund holds a
  Bachelor of Science Degree in Mechanical
  Engineering from the University of Minnesota.
• Daniel W. Parke - President and Chief Operating
  Officer Daniel W. Parke has been our President
  and Chief Operating Officer since we acquired
  Parke P.A.N.D.A. Corporation, which he owned and
  served as its president from its founding in
  2001. In addition to serving as our President and
  Chief Operating Officer, Mr. Parke continues to
  serve as the President of Parke, which is now
  named Parke Industries LLC. Mr. Parke was
  previously a founder of Parke Industries, Inc.,
  an energy solutions provider which was acquired
  in February 1998 by Strategic Resource Solutions,
  an unregulated subsidiary of Carolina Power
  Light.

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Management - Continued

• Jeffrey R. Mistarz - Chief Financial Officer
  Jeffrey R. Mistarz has been our Chief Financial
  Officer since January 2000, our Treasurer since
  October 2000, an Executive Vice President since
  November 2002 and our Assistant
  Secretary/Secretary since February 2003. From
  January 1994 until joining us, Mr. Mistarz served
  as Chief Financial Officer for Nucon Corporation,
  a privately held manufacturer of material
  handling products and systems, responsible for
  all areas of finance and accounting, managing
  capital and stockholder relations. Prior to
  joining Nucon, Mr. Mistarz was with First Chicago
  Corporation (now JPMorgan Chase Co.) for 12
  years where he held several positions in
  corporate lending, investment banking and credit
  strategy.
• Leonard Pisano - Executive Vice President,
  Business Development Leonard Pisano has been
  our Executive Vice President of Business
  Development since June 2006, prior to this, from
  May 3, 2005, the date we acquired Maximum
  Performance Group, Inc., he served as our Chief
  Operating Officer. He is also Maximum Performance
  Groups President and has been from its founding
  in February 2003. Prior to that, Mr. Pisano
  founded Maximum Energy Services in early 2001 and
  served as it President until it merged with
  Pentech Solutions to form Maximum Performance
  Group in February 2003. During his career, Mr.
  Pisano has held various senior management
  positions at companies within the energy services
  sector, including Parke Industries Inc. and SRS,
  a division of Carolina Power and Light. Prior to
  entering the energy services sector, Mr. Pisano
  spent ten years in facilities management at New
  York University, leaving NYU in 1996 when he was
  Director of Facilities.

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Management - Continued

• Pradeep (PK) Kapadia President Engineering
  Services PK Kapadia has been the head of our
  engineering division since September 2006. Prior
  to joining Lime Energy, he founded Kapadia Energy
  Services in 1980 developing and implementing
  energy efficiency solutions for commercial
  clients nationwide. From 1978 to 1980, Mr.
  Kapadia was an Applications Engineer for
  Honeywell. Mr. Kapadia received his B.S. in
  Mechanical Engineering from Tufts University in
  1978 and is a member of the Association of Energy
  Engineers and on the Board of Directors of New
  York Energy Consumers Council. He is also the
  founder of the Kapadia Education Foundation which
  helps underprivileged students in underdeveloped
  countries obtain a secular college education in
  their home countries.

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Board of Directors

• Richard P. Kiphart (Chairman) - Head of Corporate
  Finance and principal of William Blair Richard
  P. Kiphart has been one of our directors since
  January 2006. Mr. Kiphart is the head of the
  Corporate Finance Department and a Principal of
  William Blair Company Investment firm. In
  addition, Mr. Kiphart currently serves as a
  member of the board of directors of First Data
  Corp., and previously served on the Concord EFS
  board of directors from 1997 until 2004 and was
  chairman of the Concord board of directors from
  February 2003 until March 2004. Mr. Kiphart is
  also currently a director of SAFLINK Corporation,
  Advanced Biotherapy, Inc. and Nature Vision, Inc.
  In addition he is the former chairman of the
  Merit Music School, is the president and chief
  executive officer of the Lyric Opera of Chicago,
  and the vice chairman of the Erikson Institute.
  He also serves on the board of DATA (Debt AIDS
  Trade Africa).
• David R. Asplund Chief Executive Officer of
  Lime Energy David R. Asplund has been one of
  our directors since June 2002 and has been our
  Chief Executive Officer since January 2006. Prior
  to becoming CEO of Lime Energy, Mr. Asplund was
  President of Delano Group Securities, LLC, an
  investment banking firm in Chicago, Illinois,
  which he founded in 1999. Prior to founding
  Delano, Mr. Asplund was a Senior Managing
  Director of Bear Stearns and Branch Manager of
  their Chicago office. Prior to joining Bear
  Stearns, he held positions with Morgan Stanley
  and Lehman Brothers. Mr. Asplund is also a
  Director of AgeNet, Inc., a private corporation
  operating a national eldercare network and
  Managing Member of Augustine Capital Management,
  LLC, an advisor to a private equity fund.

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Board of Directors - Continued

• Gregory T. Barnum - VP of Finance and CFO of
  Datalink Corporation Gregory T. Barnum has been
  one of our directors since March 2006. Mr. Barnum
  is currently the vice president of finance and
  chief financial officer of Datalink Corporation,
  an information storage architect. Prior to
  joining Datalink in March 2006, Mr. Barnum was
  the vice president of finance, chief financial
  officer and corporate secretary of Computer
  Network Technology Corporation. From September
  1992 to July 1997, Mr. Barnum served as senior
  vice president of finance and administration,
  chief financial officer and corporate secretary
  at Tricord Systems, Inc., a manufacturer of
  enterprise servers. From May 1988 to September
  1992, Mr. Barnum served as the executive vice
  president, finance, chief financial officer,
  treasurer and corporate secretary for Cray
  Computer Corporation, a development stage company
  engaged in the design of supercomputers. Prior to
  that time, Mr. Barnum served in various
  accounting and financial management capacities
  for Cray Research, Inc., a manufacturer of
  supercomputers. Mr. Barnum is a Certified Public
  Accountant and a member of the American Institute
  of Certified Public Accountants.
• William R. ("Max") Carey - Chairman and founder
  of Corporate Resource Development William R.
  (Max) Carey has been one of our directors since
  March 2006. Mr. Carey is the chairman and founder
  of Corporate Resource Development, a sales and
  marketing consulting firm he founded in 1981. He
  is also a managing director of Entrepreneur
  Equity Corporation, an insurance broker that
  creates specialty products for middle market
  companies. Mr. Carey also serves on the boards of
  Outback Steakhouse Inc., Kforce, Inc.,
  Crosswalk.com and J.B. Hanauer Co.

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Board of Directors - Continued

• Joseph F. Desmond Senior Vice President,
  NorthernStar Natural Gas
• Joseph F. Desmond has been one of our directors
  since January, 2007. Mr. Desmond is a Senior
  Vice President, External Affairs, for
  NorthernStar Natural Gas, a developer of
  liquefied natural gas import terminals. Mr.
  Desmond also currently serves on the Advisory
  Board for Stanford University's Precourt
  Institute for Energy Efficiency. Prior to
  joining the NorthernStar in November 2006, Mr.
  Desmond was the Chairman of the California Energy
  Commission and Under Secretary for Energy Affairs
  in the California Resources Agency during the
  first term of the Schwarzenegger Administration.
  In those positions, Mr. Desmond advised the
  Governor on energy matters and was responsible
  for overall energy policy in the areas of
  electricity, natural gas and transportation fuels
  across state and federal agencies. Prior to his
  public service, Mr. Desmond held various senior
  management positions at Infotility, Inc.,
  Electronic Lighting, and Parke Industries.
• Daniel W. Parke - President and Chief Operating
  Officer of Lime Energy
• Daniel W. Parke has been our President and Chief
  Operating Officer since we acquired Parke
  P.A.N.D.A. Corporation, which he owned and served
  as its president from its founding in 2001. In
  addition to serving as our President and Chief
  Operating Officer, Mr. Parke continues to serve
  as the President of Parke, which is now named
  Parke Industries LLC. Mr. Parke was previously a
  founder of Parke Industries, Inc., an energy
  solutions provider which was acquired in February
  1998 by Strategic Resource Solutions, an
  unregulated subsidiary of Carolina Power Light.
  

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Board of Directors - Continued

• David W. Valentine - Senior Investment
  Professional of a private investment firm David
  W. Valentine has been one of our directors since
  May 2004. Mr. Valentine is currently a senior
  partner of a private investment firm. Previously,
  Mr. Valentine was the Global Head of Debt Private
  Placements at UBS Investment Bank where he had
  been a Director of Leveraged Finance. Before
  joining UBS, Mr. Valentine held various
  investment banking positions at Nesbitt Burns
  Securities Inc. and ABN Amro Chicago Corporation.

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Summary

• Lime Energy is in the right place, at the right
  time, with the right team, and the right
  technologies to capitalize on the enormous world
  wide need for energy conservation and energy
  efficient services and technologies.