Lime Energy Receives NASDAQ Notification Letter

  Lime Energy Receives NASDAQ Notification Letter

Business Wire

HUNTERSVILLE, N.C. -- January 14, 2013

Lime Energy Co. (NASDAQ: LIME) today announced that on January 9, 2012 it
received a determination letter from the Listing Qualifications Department of
The Nasdaq Stock Market LLC (“Nasdaq”). The letter advises that because the
Company remains noncompliant with the filing requirements for continued
listing under Nasdaq Listing Rule 5250(c)(1) because the Company had not filed
its Quarterly Reports on Form 10-Q for the periods ended June 30, 2012 and
September 30, 2012 (the “delinquent filings”), trading of the Company’s common
stock would be subject to suspension and the Company’s securities removed from
listing and registration on the Nasdaq Stock Market on January 18, 2013.

The Company has the right to appeal this determination and request a hearing
before Nasdaq’s Hearings Panel (the “Panel”), which it plans to do on or
before January 16, 2013. The request for a hearing will automatically stay the
suspension of trading and delisting of the Company’s securities by Nasdaq for
15 days from the date of the Company’s request. The Company also plans to
request an extended stay of the suspension and delisting, pending the hearing,
which Nasdaq may grant in its discretion.

Following the hearing, the Panel has the authority under the Nasdaq Listing
Rules to grant the Company an extension of time within which to regain
compliance with the filing requirements for a period not to exceed 360 days
from the original due date (August 14, 2012) of the first delayed filing.
However, there can be no assurance that the Panel will grant the Company a
stay of the Panel’s delisting determination until the conclusion of the
hearing process or that it will grant the additional time requested by the
Company to regain compliance with Nasdaq’s filing requirements.

As previously disclosed, the Company submitted a Plan of Compliance for
regaining compliance with Nasdaq Listing Rule 5250(c)(1) and requesting
continued listing on the Nasdaq Stock Market to Nasdaq on October 15, 2012 and
updated the Plan on November 15, 2012. An additional update to the Plan was
submitted to Nasdaq on December 6, 2012. Upon acceptance of the Plan of
Compliance, Nasdaq would have been permitted to grant the Company an extension
of up to 180 days from the first delinquent filing’s due date, or until
February 11, 2013, for the Company to regain compliance with Nasdaq’s filing
requirements for continued listing. The Plan contemplated that the delinquent
filings would have been made not later than February 11, 2013. However,
because of the Company’s recent conclusion that its financial statements for
the years ended December 31 2008 and 2009 could not be relied upon, as
disclosed by press release on December 27, 2012 and a Current Report on Form
8-K filed on December 28, 2012, the Company informed Nasdaq that it does not
expect that the delinquent filings will be made by February 11, 2013.
Consequently, Nasdaq determined to deny the Company’s request for continued
listing on The Nasdaq Stock Market and issued the determination letter.

The Company continues to work diligently to complete the accounting review of
its financial statements contained in its periodic reports for the years ended
December 31, 2008, 2009, 2010 and 2011, and the quarter ended March 31, 2012,
and has made good progress toward completing this review. It currently expects
that it will file amendments to those periodic reports on or before March 31,
2013 and to file its delinquent financial statements on or before April 30,

Cautionary Statement

This press release includes “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act
of 1934. Forward-looking statements are subject to known and unknown risks and
uncertainties, many of which may be beyond our control. We caution you that
the forward-looking information presented in this press release is not a
guarantee of future events, and that actual events and results may differ
materially from those made in or suggested by the forward-looking information
contained in this press release. In addition, forward-looking statements
generally can be identified by the use of forward-looking terminology such as
“may,” “plan,” “ will,” “expect,” “intend,” “estimate,” “anticipate,”
“believe” or “continue” or the negative thereof or variations thereon or
similar terminology. A number of important factors could cause actual events
and results to differ materially from those contained in or implied by the
forward-looking statements, including, without limitation, whether we timely
request a hearing before Nasdaq’s Hearings Panel, whether we are granted a
hearing and a stay of delisting pending any hearing, how promptly we are able
to file our delinquent quarterly reports and complete our accounting review of
our financial statements for the years ended December 31, 2008, 2009, 2010 and
2011, and the quarter ended March 31, 2012 and the results of that review, as
well as other risk factors discussed in our Annual Report on Form 10-K, filed
on March 16, 2012 with the SEC, which can be found at the SEC’s website, each of which is specifically incorporated into this press
release. Any forward-looking information presented herein is made only as of
the date of this press, and we do not undertake any obligation to update or
revise any forward-looking information to reflect changes in assumptions, the
occurrence of unanticipated events, or otherwise.


Lime Energy Co.
Investor Relations:
Ashley Conger, 704-892-4442
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