Energy storage technology reduces power consumption during peak periods

SANTA BARBARA, Calif., March 11, 2015 - Ice Energy today announced it has

been awarded a five-year contract from Riverside Public Utilities to provide
5 megawatts of behind-the-meter thermal energy storage using Ice Energy's
proprietary Ice Bear system. The program will kick off this spring.

The City of Riverside, California, the hottest climate zone in the Los
Angeles basin, selected Ice Energy to align with its Utility 2.0 smart grid
and renewable energy plan. Ice Energy's product, the Ice Bear, is a
smart-grid enabled, thermal energy storage technology that will help
Riverside Public Utilities better integrate its increasing reliance on
clean, renewable energy resources like wind, solar, and geothermal systems
to maintain low energy costs for its customers.

"This is our first energy storage project launching a new era - Utility 2.0
- for the city of Riverside," said Girish Balchandran, general manager for
Riverside Public Utilities. "We chose Ice Energy's technology to improve
grid reliability and to reduce peak capacity of commercial business air
conditioning for many reasons - it will help to minimize infrastructure
investment, help to achieve our environmental objectives all while ensuring
the lowest energy costs for customers. The project also creates an economic
development opportunity whereby 30-40% of the project investment will be go
right back into our community using labor and project materials sourced
locally to install and operate the thermal energy storage equipment."

Ice Energy's product, the Ice Bear, attaches to one or more standard 5-20
ton commercial AC units. The Ice Bear freezes ice at night when demand for
power is low and capacity is abundant. Then during the day, stored ice is
used to provide cooling, instead of power-intensive AC compressors - a
unique solution to the heart of the problem that creates inefficient and
less reliable grids, peak use surges. Each Ice Bear can reduce harmful CO2
emissions by up to 10 tons per year.

"Riverside Public Utilities has keen insight into innovations that best
serve its customers and community. The Ice Bear technology will not only
reduce the city's peak usage and reliance on fossil fuels, but will also
reinvest ratepayer money into the local economy," said Mike Hopkins, CEO of
Ice Energy, the leading provider of distributed thermal energy storage
technology.

Riverside, like other public utilities in California, is increasing its
investment in renewable sources to meet Governor Brown's newly enacted
legislation upping the state's goal to 50 percent renewables by 2030. Energy
storage, particularly the distributed, efficient and cost-effective storage
provided by Ice Energy, will help to maintain a robust and reliable grid.
Almost 1,000 Ice Bear units are already installed in more than 40 different
utility service territories nationwide surpassing 25 million hours of
reliable operation.

About Ice Energy
Ice Energy delivers cost-effective, reliable and highly efficient
distributed energy storage and smart grid solutions to utilities using
direct-expansion AC technology. The company's smart grid platform integrates
distributed energy storage technology with an advanced software
infrastructure and intelligent two-way control to provide utilities with a
fully dispatchable grid asset that can be rapidly deployed at any scale. To
learn more about Ice Energy, please visit www.ice-energy.com.