Investor Presentation

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Investor Presentation

• January 2008

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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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Company Snapshots as of 9.30.07

• Ticker Symbol (LMEG) on OTC BB
• Proposed NASDAQ Symbol (LIME) expected
  mid-February
• Shares Issued and Outstanding 7,726,000
• Cash 4,632,512
• Debt 5,648,840
• Includes 5 million convertible note at
  7.00/share due May 2010
• Stockholder Equity 19,589,868
• Total Insider Ownership 71
• Directors, Executive Officers and Employee
  Ownership 51
• Holders of 5 or greater excluding Officers and
  Directors - 20
• Duke Energy 6

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Who Are We?

• Corporate Americas Energy Efficiency Partner
  with unique services and proprietary technologies
  to reduce energy consumption
• Over 75 years cumulative experience in energy
  conservation and efficiency having upgraded over
  one billion square feet of building space saving
  customers over four billion kilowatt hours of
  electricity
• Formed as a publicly traded company in June 2006

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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 employee productivity
• Enhance the value of the 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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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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US Retail Electricity Prices
Average US commercial electricity prices rose
16.6 from 8.03 cents/kWh in 2003 to a record of
9.36 cents/kWh in 2006, according to the US
Department of Energy.
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Electric Bills to Soar
Chicago Tribune 6.16.06

• Electricity Prices in 2006 Showed Largest
  Increase Since 1981 U.S. Dept of Energy
  10.22.07
• Electricity Demand Is Far Outpacing New Supply
  Sources Wall Street Journal 10.17.07
• North American Electric Reliability Council warns
  demand for electricity is increasing 3X faster
  than resources are being added
• According to Edison Electric Institute, there
  are more electric rate increase requests pending
  now than ever before
• Jim Rogers, CEO of Duke Energy which is one of
  the largest shareholders of Lime Energy, states
  the cheapest way to generate clean,
  emissions-free power is by improving energy
  efficiency which he calls the fifth fuel.

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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 currently continue through December
  31, 2008

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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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Energy Services Division
Energy Technology Division

• Energy Engineering
• Energy Efficient Lighting Upgrades

• Proprietary HVAC Technology-eMAC

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Engineering Services

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

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Benefits of Engineering 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
• Our Total Energy Analysis approach enables
  clients to contract for step-by-step,
  pay-as-you-go services
• Over 90 of our Engineering Service work results
  in recurring revenue in one of more of the
  following
• Additional engineering work
• Implementation of lighting upgrades and/or HVAC
  controls
• Expansion of work to additional customer
  facilities

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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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BEFORE kW - 52.4
AFTER kW - 24.0
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Case Studies

• Washington Mutual Bank Initially 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 2,000 sites in 29 states
  covering 12 million square feet. In 2007,
  contracted to install our eMAC HVAC monitoring
  and control systems at several bank branches in
  NY and CA.
• Frito-Lay Audited and implemented lighting
  upgrades at multiple distribution centers and
  plants throughout the U.S. Installed over 3,000
  energy efficient lighting replacements and
  retrofits as well as secured rebates in several
  states.
• Bally Total Fitness In 2006, provided lighting
  upgrades to our 105th Bally Fitness Center
  resulting in net positive cash flow and total
  savings of over 2.4 million, and over 450,000
  in utility rebates.
• Jones Lang LaSalle Contracted for turnkey
  lighting upgrades at four high-rise office
  buildings in Manhattan and e-commissioning
  projects at multiple customer sites. Lime has
  also provided training to JLL managers in energy
  procurement, monitoring, grants and incentives
  and energy conservation technologies.

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Energy Efficient HVAC Technology

• Proprietary HVAC control called eMAC (Energy
  Management and Control)
• 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
• Proscriptive Rebates
• Approved by NYSDERDA for Demand Response with a
  200/kW incentive for peak demand reduction
• 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 900 eMAC
  units in most Northeast branches and the eMAC
  system is now specified in all new construction.
  Lime Energy has stationed a HVAC technical
  monitoring specialist within the bank call center
  to handle all HVAC related maintenance events.
• Return on Investment 50
• Payback Period 2 years
• Energy Utility Rebate 625,000
• Annual Energy Savings 3.1 million
• HVAC Service Call Reduction 30

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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
• Offer extended payment plan

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Sales Marketing Strategy Shift
Technical
Financial

• Profit Margin

• Utility bills

• Operating Income

• Therms

• Return on Investment

• Kilowatt hours

• Return on Assets

• Btuhs

• Earnings per Share

• Heat rate

• Shareholder equity

• Load factor

• Capacity limits

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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 a major California Utility provided
  an annual savings of over 1.5 million kWh of
  electricity which equates to the approximate
  elimination of
• 2.7 million lbs of Carbon Dioxide
• the leading cause of Global Warming
• 15.6 million grams of Sulfur Dioxide
• the leading cause of Acid Rain
• 5.3 million grams of Nitric Dioxide
• the leading cause of Smog and Acid Precipitation

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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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Summary

• Lime Energy is at 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.

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Management

• David R. Asplund Chief Executive Officer
  David R. Asplund has been our Chief Executive
  Officer since January 2006 and one of our
  directors since June 2002. 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. 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.
• 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).
• 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.
• .

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Board of Directors - Continued

• 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
• 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.

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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. Prior to
  taking his current position, 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.
• 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.
• 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.