PE-backed Landfill Energy Buys Innovative Energy

Landfill Energy Systems, which is backed by Energy Investors Funds, has acquired Innovative Energy Systems. Oakfield, New York-based Innovative Energy Systems owns and operates a portfolio of nearly a dozen landfill gas-to-energy projects located in New York and Vermont. Formed in 1987, Energy Investors Funds are focused on the independent power and electric utility industry. The firm has offices in Boston, New York and San Francisco.

PRESS RELEASE
Energy Investors Funds (“EIF”) announced
today that EIF Renewable Energy Holdings, LLC (“EIFREH”), through its
wholly owned subsidiary, Landfill Energy Systems (“LES”), acquired
Innovative Energy Systems (“IES”) of Oakfield, New York. IES, a
privately held company, owns and operates a portfolio of 11 landfill
gas-to-energy projects located in New York and Vermont. The IES
portfolio includes developed projects with an installed capacity of 72
megawatts supplying over 42,000 homes with reliable renewable energy.
Terms of the transaction were not disclosed.

With this acquisition, LES holds the rights to 45 landfills in 16
states, producing over 200 MW of base load renewable energy along with
high and medium Btu gas. These projects reduce carbon dioxide emissions
by over 9 million tons per year, which is equivalent to taking more than
1.7 million cars off the road.

Peter Zeliff, founder of IES, will maintain a minority ownership
interest and assume the role of Senior Vice President and COO of LES.
“This merger makes so much sense; we already have similar operating
philosophies and corporate cultures,” Zeliff said. “The combination
gives us the most experienced development and operating team in the
industry.”

The existing leaders of LES and IES have formed a joint management team
to run the merged portfolios.

“We are excited by the opportunity to work with the IES leadership team
as we continue our growth through greenfield development and
acquisitions of landfill gas-to-energy projects,” said Richard DiGia,
President and CEO of LES.

This is the fourth major acquisition in the landfill gas-to-energy space
by EIF and makes EIFREH one of the largest landfill gas-to-energy
companies in the United States. “This transaction builds on EIF’s
strategy of investing in a diversified portfolio of energy assets across
fuel types and technologies, including significant investments in base
load renewable energy,” said Jose Torres-Monllor, a Senior Vice
President of EIF.

About Energy Investors Funds
EIF was founded in 1987 as the first private equity fund manager
dedicated exclusively to the independent power and electric utility
industry. Its consistent, proven investment strategy is to create
geographically and technologically diversified portfolios of electric
power-related assets that provide superior risk-adjusted equity returns
with current cash flow and capital appreciation. As an investment
manager, EIF seeks to mitigate commodity risk (fuel and electricity) by
focusing primarily on acquiring power assets with long-term off-take
contracts. EIF has mobilized over $4 billion in capital raised in seven
funds, and currently manages four private equity funds from its offices
in Boston, New York, and San Francisco. These funds have made over 100
diversified investments which have an underlying asset value greater
than $15 billion. EIF controls 4,000 MW of operating power assets with
another 2,200 MW of power assets under development or construction. For
more information visit www.eif.com.