Lime Energy Announces Expansion of Internal Review

  Lime Energy Announces Expansion of Internal Review

Business Wire

HUNTERSVILLE, N.C. -- December 27, 2012

Lime Energy Co. (NASDAQ: LIME) today announced that on December 21, 2012, the
Audit Committee of the Board of Directors of Lime Energy Co. (the “Company”)
determined that the Company’s consolidated financial statements on Form 10-K
for the years ended December 31, 2008 and December 31, 2009 (the “2008 - 2009
financial statements”) may no longer be relied upon. The Audit Committee made
that determination based on information discovered in the course of the
Company's internal investigation of the misreporting of revenue for the years
ended December 31, 2010 and December 31, 2011 and the quarter ended March 31,
2012 (the “2010 - 2012 financial statements" and collectively with the 2008 -
2009 financial statements, the "affected financial statements”) previously
reported in the Current Report on Form 8-K filed on July 17, 2012. The
Company's management and the Audit Committee believe that some portion of the
Company’s revenue for 2009 and 2008 was recognized earlier than permitted
under generally accepted accounting principles. Nothing has come to the
attention of the Company’s management or the Audit Committee that would cause
them to believe that any of the misreported revenue recorded for 2009 and 2008
should not have been recorded in a later period.

The Company cannot make a reliable estimate of the magnitude of the
misreported revenue or the effects on the 2009 or 2008 financial statements at
this time. The Company does expect that the misreporting will require
restatement of the 2009 financial statements, in addition to the restatement
of the 2010 - 2012 financial statements. The Company expects to promptly
determine whether a restatement of the 2008 financial statement will be
necessary. The Company also expects that it will be able to complete the
restatement of the affected financial statements and disclose results from its
internal investigation during the first quarter of 2013.

As previously disclosed, the Company, under the supervision of a subcommittee
of the Audit Committee and with the assistance of outside counsel and forensic
accountants, is currently conducting an investigation of the misreporting of
revenue for 2010, 2011 and the first quarter of 2012. That investigation will
be expanded to include the misreporting of revenue in 2009 and, if necessary,
2008.

Lime’s principal financial and accounting officer has discussed the matters
disclosed in this press release with Lime’s independent accountants, BDO USA,
LLP.

Cautionary Statement

This press release contains “forward-looking statements,” including the
Company’s expectations and beliefs about its recording of revenue and the
effects of any misreporting on its financial statements, are based on
currently available information. Terminology such as “believe,” “expect,”
“intend,” “estimate,” “project,” “anticipate,” “will” or similar statements or
variations of such terms are intended to identify forward-looking statements,
although not all forward-looking statements contain such terms. These
forward-looking are subject to a number of risks, uncertainties and other
factors that could cause Lime Energy’s actual results, performance, prospects
or opportunities in 2013 and beyond to differ materially from those expressed
in, or implied by, these forward-looking statements. These risks include the
Company's ability to promptly complete its internal investigation and the
restatement of the affected financial statements and the risks 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.

Contact:

Bristol Capital Ltd.
Investor Relations:
Glen Akselrod, 905-326-1888
glen@bristolir.com
 
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