ESCO Israel, 72 Pinhas Rozen St. Tel Aviv 69612 Israel, www.escoisrael.com

Energy consumption in industrial sector

Manufactures Association Data Report 2010: Electricity: 3.6 Billion IS.

Fuel: 3.5 Billion IS.

Total: 7.1 Billion IS.

Energy efficiency potential of 20% = 1.42 Billion IS

per year.

Since 2006 Electricity price up 15%, FulePrice +/- 30%, NG up 100%+

Conclusion:

We are experiencing an energy crisis

Acute problems solved by Energy Efficiency

Environmental

National Security: Securization of Energy Source

Economic considerations: Increase of oil & NG prices

Health considerations: Acknowledgement of the relation between fossil fuel burning, air contamination and diseases.

ESCO Israel

Established in 2006, By Dan Bar Mashiah-(former economic consultant to the Ministry of Energy and Infrastructures) & private equity companies owned by RECANATI family.

October 7th, 2010 - NISCO ARDAN Group Purchased a large percentage of the company as a strategic investor.

ACTIVITIES

ESCO Israel is an independent energy service company, offering state of the art solutions for reducing electricity costs and achieving maximal energy efficiency.

Main fields of expertise:I. Energy EfficiencyII. Energy & Electricity Distribution III. Smart Grid

ESCO Israel finance, survey, install, implement, maintain & measure the project savings.

ESCO Israel specializes in the implementation

of projects in the following systems:

Lighting

Air-conditioning and Cooling

Monitoring

Engines and Pumps

Steam

Water heating

Building Isolation

Advantages for customers

Tailor made & Total solution, invested by ESCO.

Reduction energy costs - Customer will always pay less.

Customer shares the saving with ESCO from first stage.

Improving productivity & saving operation & maintenance costs with 24/7 service center.

100% risks on ESCO & full Turn key.

100% Free cash flow for customer to invest at Core.

Upgrading of energy system & Improvement property value.

Savings measured according to IPMVP Protocol.

Energy Audit made by Experts team of ESCO.

Implementation by State-of-the-art technology for 10 years.

Full warranty and maintenance.

Environmental & Marketing benefit to customer.

If you can't measure it, you can't manage it.

Industrial and Hi-Tech

“MONDI HADERA PAPER” - is the largest in the manufacture and marketing of printing and copy paper for various uses.

Projects:

1. Installation of Frequency Regulators Engine - 10% savings.

2. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters.

3. Retrofit the existing Lighting system to efficient one - 30% savings.

Planning:

Expanding the project to other Energy consumers in the facility.

MONDI – the Paper Factory in Hadera

Significant decrease in Electricity Consumption in Engines

after ESCO project

before ESCO project

“KAFRIT” Factory – Kibbutz Kfar Aza

The “KAFRIT” Factory is the leading and innovative manufacturer of

compounds and additives for the plastic industry.

Projects : 1. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters.2. Retrofit the existing Lighting system at the Warehouse &

Production floor to efficient one - 30% savings.Planning:Expanding the project to other Energy consumers in the facility.

Significant decrease in Electricity Consumption

before ESCO project

after ESCO project

Israel Military Industries Ltd.

Projects: 1. Installation of Air conditioning & Lighting Monitoring system

for controlling electricity consumption and saving costs. 2. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters.3. Retrofit the existing Lighting system in the management offices,

production department and control rooms to efficient one.Planning:Expanding the project to other Energy consumers in the facility.

Military Industries Ltd. is the main manufacturer of weapons and munitions for the Israeli ground forces. This vital industry is one of the large energy consumers in Israel, who is under complex financial pressure and due to its location faces demands with regard to the environmental quality,.

kotlav Hanita Coatings Factory

A leading factory, specializing in the development and conversion of coated, laminated and metalized films for a range of industrial and commercial applications.

Projects:

1. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters.

2. Retrofit the existing Lighting system to efficient one - 30% savings.

Planning:

Expanding the project to other Energy consumers in the facility.

Old Lighting systemNew Lighting system

Significant decrease in Electricity Consumption

before ESCO project

after ESCO project

GAASH Lighting Factory

Projects:1. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters.2. Retrofit the existing Lighting system to efficient one - 40% savings.Planning:Expanding the project to other Energy consumers in the facility.

New Lighting system Old Lighting system

GAASH Lighting is the leading industrial company in Israel for lighting solutions for commercial and industrial sectors.

after ESCO project

before ESCO project

Significant decrease in Electricity Consumption

AMBAR Feed - Mills

Projects:1. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters. 2. Retrofit the existing Lighting system to efficient one - 30% savingsPlanning:Expanding the project to other Energy consumers in the facility.

Educational Institutions

Hula Valley Regional School in Kfar Blum

Projects:1. Installation of Air conditioning Monitoring system for controlling

electricity consumption and saving costs.2. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters.3. Retrofit the existing Lighting system to Efficient one - 30% savings

Significant decrease in Electricity Consumption

after ESCO project

before ESCO project

Project at WIZO organizations in Israel( schools, youth villages and main offices)

Projects:

1. Installation of solar systems for water heating in dormitories.2. Installation of Air Conditioning Monitoring system for controlling

electricity consumption and saving costs. 3. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters. 4. Retrofit the existing Lighting system in classrooms and main offices

to efficient one - 40% savings.

Project at the WIZO headquarters

Projects:1. Installation of Air Conditioning Monitoring system for controlling

electricity consumption and saving costs. 2. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters. 3. Retrofit the existing Lighting system to efficient one.

Significant decrease in Electricity Consumption

after ESCO project

before ESCO project

Project at ULPANA SEGULA School in Kiriat Motzkin

Projects:

1. Installation of solar systems for water heating in dormitories & kitchen.2. Installation of Air Conditioning Monitoring system for controlling

electricity consumption and saving costs. 3. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters. 4. Retrofit the existing Lighting system in classrooms and main offices

to efficient one - 30% savings.

Project at the ULPANA SEGULA School

Significant decrease in Energy Consumption

It is important to mention the Indirect Savings, which fully remain within the institution, including:

I. Slower amortization of the old solar system.

II. Substantial savings on repair and spare parts.

III. Savings on working hours.

Recreation, Leisure facilities and Dormitories

Project at Israeli organization “LEMA’AN HACHAYAL”

Projects sites:Holiday Village, OlgaSoldier’s House, EilatShirion HouseHoliday Village, Ashkelon,Soldier’s House, Beer ShevaSoldier’s House, Eilat

Projects:1. Installation of Air conditioning Monitoring system for controlling

electricity consumption and saving costs.2. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters. 3. Retrofit the existing Lighting system to efficient one - 30% savings.

Project at the Israeli organization “LEMA’AN HACHAYAL”

Project at the regional Country Club CHEN in Tel - Aviv

Projects:1. Installation of water heating system in the Swimming Pools

for saving costs.2. Retrofit the existing Lighting system to efficient one - 30% savings.

Office buildings & Management Companies

Project at the GIBOR SPORT office building

Projects:1. Measurement project for the energy efficiency of the existing Chiller.2. Retrofit the existing Lighting system to efficient one at Parking Garage.3. Management of the energy system in the tower.

Hotels

Project at the “Lev Jerusalem” Hotel

Projects:1. Installation of Solar system for Water heating.2. Installation of Air Conditioning Monitoring system for controlling

electricity consumption and saving costs. 3. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters.

Retirement Homes

Project at Retirement Homes in Ramat Tivon

Projects sites:NOF TIVON retirement homeNOF TIBERIAS retirement homeNOF HAGEFEN retirement home

Projects:1. Installation of Solar system for Water heating.2. Installation of Air Conditioning Monitoring system for controlling

electricity consumption and saving costs. 3. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters.4. Retrofit the existing Lighting system to efficient one - 30% savings.

The hospital sector

ESCO Israel - Electricity Distribution and Supply

ESCO Israel is an Electricity Distributor.

The company initiate, plan, invest, finance, manage and maintain the

Electricity Distribution Infrastructure according to the standard of the

Public Utility Authority - Electricity.

The company has a variety of customers, including residential

buildings, recreational leisure sites, municipal sites , Kibbutzim

(Community Settlement) and more. ESCO has a Distributor’s license from the Public Utility Authority -

Electricity ESCO certified ISO 9001 for Electricity Distribution & Supply. ESCO initiates, finances, manages and maintains the projects at least for

20 years. ESCO Israel established a partnership with the Kibbutz enterprises

“MISHKEY DAROM” and “MISHKEY HANEGEV”, which will distribute electricity to 50 Kibbutzim with 15,000 consumer in the southern part of Israel.

Assimilating an Electricity Counting System and an energy control software program at the “NOF

HAMIFRATZ” - residential tower in Eilat

Projects:1. Assimilating a Counting Payment system including the issuing

of electricity bills.2. Management of the energy system at the residential tower, serving the

leading hotel chains in Eilat.

Electric distribution at the “SORESH” –community settlement & Apartment Hotel

Projects:1. Engineering survey in the Electricity Supply Distribution System.

1. Upgrade, renovation, construction in Electricity and Control rooms.

2. Establishment of annual maintenance system (24/7 hours service).

3. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters. 4. Assimilating a Counting Payment system including the issuing

of electricity bills.

Electric distribution at the Kibbutz “Palmahim”Annual power consumption - 1.5 million, Agreement for 24 years

Projects:1. Engineering survey in the Electricity Supply Distribution System.

1. Upgrade, renovation, construction in Electricity and Control rooms.

2. Establishment of annual maintenance system (24/7 hours service).

3. Installation of a SMART GRID System for measuring and managing

energy consumption by means of smart meters. 4. Assimilating a Counting Payment system including the issuing

of electricity bills.

Upgrading & Maintenance Electrical Systems before and after