New Paradigm. New Partners. New Energy. Investor Presentation June 2011 Lime’s Mission To be the leader in developing and implementing economically viable clean energy solutions that benefit our communities and protect our environment. NASDAQ: LIME Lime Energy has been delivering clean energy solutions for over 30 years. Our business focuses on three important areas for clean energy: • Energy Efficiency to reduce consumption • Renewable Energy for cleaner ways of producing the energy we need • Smart Grid solutions to optimize the efficiency of our energy infrastructure • 400 Employees • 2B+ of Square Feet in Efficiency Projects • Our clients include: Leading Fortune 500 Businesses Major Investor-Owned Utilities Global Energy Service Companies (“ESCOs") Federal, State and Municipal Government Agencies LIME’S NATIONAL FOOTPRINT & CONTRACT AWARDS Bellevue, WA Boston, MA Lee, MA Buffalo, NY Emeryville, CA New York, NY San Jose, CA Philadelphia, PA Bethlehem, PA Elk Grove Woodbridge, NJ Northridge, CA Village, IL Denver, CO Greensboro, NC Glendora, CA Charlotte, NC San Diego, CA Austin, TX Atlanta, GA Aiea, HI Dallas, TX Lime New Lime Contracts Locations (Last 18 Months) GLOBAL AWARENESS & MARKET TRANSITION “Clean energy remains one of the strongest and most vital sectors reshaping the global landscape” – Clean Edge: 2011CleadTech Trends Projected increase in the annual Energy Efficiency market by nearly $400 billion by 2030. ACEEE, The Size of the U.S. Energy Efficiency Market 2008 Global Investments in Renewable Energy are Expected to reach $896 billion by 2020 – Research & Markets, April 18th 2011 The investment needed to implement a fully functional US Smart Grid ranges from $338 billion to $476 billion and can result in benefits between $1.3 trillion and $2 trillion. - EPRI 2011, Estimating the Costs & Benefits of the SmartGrid LIME’S ALIGNMENT & ENERGY MARKET TRANSITION 25 Year History Clean Energy Integrators Energy Renewable Policy Smart Efficiency Energy Grid Opportunity Smart Grid New Energy LIME OPTIMIZED Lime is aligned & optimized to deliver on the promises of New Energy: New Energy Opportunity Clean Tech SMART SMART SMART BUILDINGS COMMUNITIES GRID ORGANIZATIONAL DELIVERY STRUCTURE Regional Energy Asset Key Client Operations Development Relationships • Diverse capabilities • Asset Development • Major Utility Companies • Local presence • Deal Structuring • Fortune 500 Companies • Local government & • Renewable Energy expertise • Energy Service Companies institutional clients • Government Agencies Organization Optimized to Deliver: • Regional market • Optionality • Sales Excellence expertise • Overcoming project • Large Contracts • Cost-effective Delivery development barriers • Partner Ecosystem • Custom Program Delivery LIME’S SOLUTIONS Lime Energy meets our clients’ needs with a comprehensive suite of services across the full range of energy efficiency and renewable energy projects in their facilities: Lime combines multiple energy savings measures with viable energy programs to deliver real business value. CUSTOMER/MARKET DRIVERS Investor-Owned Public Sector / Private Sector/ Utilities Institutional National Accounts Adhering to increasing Complying w/ executive Realizing near term return on federal, state and local orders for energy & green investments and reducing government regulations house gas emission reduction ongoing operating cost Complying with Energy Implementing budget Increasing pressure for Efficiency Resource neutral infrastructure sustainability and corporate Standard (EERS) upgrades social responsibility Optimizing Smart Grid for Reducing annual energy costs Securing Energy Intelligence to secure and efficient while securing future energy drive smarter energy decisions electrical distribution price stability across global business units. LIME’S PROVEN DELIVERY We consistently deliver Lime’s ethics & culture to Ability to out innovate our on our promises & always do what is right competition with complete programs. for the customer. solutions. Ability to provide scale One Company Approach Quickly react & adjust to programs, geography local policy & strategy, to state by state policy and solutions. energy audits, design & changes implementation. LIME’S INVESTMENTS 2011 Scalable Platform Lime’s platform creates business value by delivering expertise, 2010 Delivery Process speed, innovation through proven methodologies, policy 2009 Segment Focus enablement, and scalable solutions. 2008 Acquisitions • Execute on Larger Projects • Leverage Key Partnerships • Recruit Top Talent LIME’S PLATFORM l PEOPLE 400 “We are the Employees Proven Culture Implementers!” Fulfillment Teams Sales Excellence People Innovation LIME’S PLATFORM l POLICY Sales & Operational Alignment 23 Strategic U.S. Offices Policy RPS Standards Incentive Both EERS Programs & RPP Standards Lime’s Active Programs Go-To- & Investments Market Strategies LIME’S PLATFORM l POLICY 2000 = 2 2004 = 4 2006 = 9 2008 = 18 / 1 pending Today 2011 = 40 / 4 w/Goals Policy Lime has helped save National Grid customers 55 million kWh and $6.7 million annually on their electric bills. Customers have benefited from $12.5 million in National Grid Incentive monies. LIME’S PLATFORM l PARTNERS Global ESCOs "Our alliance with a design and implementation firm Technology such as Lime Energy bolsters the consulting we're doing through GE's engineering and specification teams," Providers Lou Mane Managing Director | GE Energy Services Program Partners “Lime has been one of the leading State companies in delivering customers into Program this program. Managers They have demonstrated a consistent commitment to the Program and have built a professional team, which has been a valuable resource to TRC in its implementation of Niche this Program.” Investor-Owned Contractors Utilities Francis X. Reilly, Jr., Senior Vice President, TRC Energy Services New Jersey’s Clean Energy Programs LIME’S PLATFORM l LIME iPLAN Building EE Assessments Universal & Lime Consistent standards iPlan Web based platform for customer facility energy asset inventory Utility Bill & Weather Data Utility Digital time stamped Programs inventory ID for baseline verification Demand Response Load Pocket Management KwH Reduction & Acquisition | Financial Summary REVENUE GROWTH Quarterly Revenue Annual Revenue ($ in millions) $45.0 $40.0 ($ in millions) $35.0 $140.0 $30.0 $120.0 $25.0 $100.0 104.3% CAGR $80.0 $20.0 $60.0 $15.0 $40.0 $10.0 $20.0 $5.0 $0.0 $0.0 2006 2007 2008 2009 2010 2011 E Q1 Q2 Q3 Q4 2006 2007 2008 2009 2010 2011 SELLING, GENERAL & ADMIN. EXPENSE $ millions $30 29.9% CAGR $25 $20 $15 $10 $5 $0 2006 2007 2008 2009 2010 OPERATING LEVERAGE 20 18 16 14 Revenue Growth 104.3 CAGR 12 Revenue Growing 10 Approximately 3 SG&A Expense times as fast as 8 Growth SG&A Expense 6 29.9% CAGR 4 2 0 2006 2007 2008 2009 2010 OPERATING LEVERAGE 2010 Growth 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Revenue SG&A OPERATING LEVERAGE SG&A as % of Revenue 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% 2006 2007 2008 2009 2010 OPERATING LEVERAGE Gross Margin 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2006 2007 2008 2009 2010 OPERATING LEVERAGE Cost as % of Revenue 300% 250% 200% 150% 100% 50% 0% 2006 2007 2008 2009 2010 COGS SG&A Amortization Impairment OPERATING LEVERAGE Adjusted EBITDA $2.0 $0.0 -$2.0 -$4.0 -$6.0 -$8.0 -$10.0 2006 2007 2008 2009 2010 2011 E RECENT COMPANY STATISTICS • 2010 Revenue Year End 12/31: $95.7 M • Shares outstanding: 23.8 M • Market Cap as of 05/03/11: $113 M • Cash as of 03/31/11: $9.0 M • Long Term Debt as of 03/31/11: $495 K • Insider Ownership (Approx): 48% • Institutional Ownership (Approx): 12% • 52 Week High/Low: $5.50 / $2.77 SUMMARY Lime Energy is well-positioned for this current market transition. Our people are proven and continue to deliver on the promises to our valued customers. Game-changing partnerships are quickly emerging and seeking established players. Lime’s platform investments allow for speed, scale and innovation. FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect,“ "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," or "continue" or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements. Other factors that could materially affect actual results, levels of activity, performance or achievements can be found in Lime Energy’s public filings with the SEC, including under the sections entitled "Risk Factors." If any of these risks or uncertainties materializes, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statements that you see or hear during this presentation reflect our current views with respect to future events and are subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise.