American DG Energy (ADGE) 8-K American American DG Energy Reports Third Quarter 2011 Financial Performance

EXHIBIT 99.1

press release

For further information contact:

John Hatsopoulos, American DG Energy

Telephone: 781.522.6020

American American DG Energy Reports Third Quarter 2011 Financial Performance

Energy Revenues Increased by 14% for the Nine Month Period

WALTHAM, Mass. – November 10, 2011 – American DG Energy Inc. (NYSE Amex: ADGE), a leading On-Site Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, reported revenues of $1,418,411 in the third quarter of 2011, compared to $1,569,577 in the third quarter of 2010.  GAAP diluted loss per share (EPS) was $(0.02) in 2011, compared to $(0.00) in 2010 and GAAP operating income was a loss of $(1,132,620) in 2011, compared to a loss of $(61,015) in 2010.

Third Quarter 2011 Highlights:

· Energy revenue remained relatively unchanged at $1,389,159 compared to $1,395,274 for the same period in 2010. The market price of electricity decreased by 7.8% and the price of natural gas, a key component in the calculation of hot water revenue decreased by 3.4%.

· Energy gross profit margin without depreciation was 47.8% compared to 51.6% for the same period in 2010.

· Our total cash inflows, excluding our EuroSite Power subsidiary, for the last 18 months were $241,769 and year-to-date was $34,876.

· Our installed base increased by 8 new energy systems from a year ago bringing the total number of energy systems operating to 79 compared to 71 in the third quarter of 2010.

· Our installed base of combined heat and power (CHP) systems surpassed 5,460 KW.

· Our backlog consisted of 8 energy systems.

· We finished the quarter with approximately $12.1 million in cash.

· In August we announced the startup of two more energy systems at Stevens Institute of Technology, a premier technological university, located in Hoboken, New Jersey. The addition of these two 75kW CHP systems, located at Stevens Central Plant, brought the total number of energy systems we own and operate at the university to nine.

· In September we reached an agreement to provide an on-site energy solution with the first heat pump system to Sidney Albert Albany Jewish Community Center (Albany JCC), located in Albany, New York.

· Since the beginning of the year and including EuroSite Power we have added 16 people to our team of sales, engineers and advisors to focus on growing our business.

· In August we filed an initial Form 10 Registration Statement with the Securities and Exchange Commission for our EuroSite Power subsidiary.

· In September we officially launched EuroSite Power Limited in the United Kingdom during The Energy Event and introduced our new Managing Director Mr. Paul J. Hamblyn.

· We have started a major marketing effort to communicate our brand and increase lead generation via a multi-media offering.

Recent Highlights:

· After the end of the quarter we received approximately $160,000 in rebates and incentives.

- more -

American DG Energy Reports Third Quarter 2011 Financial Performance, page 2 of 6

· In November we announced the operation of a 375 kW CHP system at Doral Arrowwood Hotel and Conference Center in Rye Brook, New York. The system is estimated to generate total revenue of approximately $10 million over the term of the 15 year agreement.

· With the introduction of the heat pump system and low emissions technology we are preparing to expand our market reach in 2012.

· In October we appointed Messrs. Adrian Fawcett, Ian Durant and Gary Parke to the EuroSite Power Advisory Board.

· We have ordered 3 Inverter based CHP systems that will be shipped to the United Kingdom later this year for EuroSite Power.

· The EuroSite Power registration statement on Form 10 became effective on October 17, 2011.

American DG Energy will hold its earnings conference call today, November 10, 2011 at 10:00 a.m. Eastern Time.  To listen, call (800) 860-2442 within the U.S., or (412) 858-4600 outside the U.S.  Participants should reference American DG Energy to access the call.  Please begin dialing at least 10 minutes before the scheduled starting time.  The earnings press release will be available on the Company web site at www.americandg.com in the “Investors” section under "News Releases.”   The earnings call will be available for playback through Friday, November 18, 2011.  To listen to the playback, call (877) 344-7529 within the U.S. or (412) 317-0088 outside the U.S. and use Conference Number 10006147.

The earnings conference call will be webcast live.  To register for and listen to the webcast, go to www.americandg.com/webcast.  Following the call, the webcast will be archived for 30 days.

About American DG Energy

American DG Energy supplies low-cost energy to its customers through distributed power generating systems.  The Company is committed to providing institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by local utilities – without any capital or start-up costs to the energy user – through its On-Site Utility energy solutions.  American DG Energy is headquartered in Waltham, Massachusetts.  More information can be found at www.americandg.com.

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FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company’s website and in Securities and Exchange Commission filings. This press release does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

American DG Energy Reports Third Quarter 2011 Financial Performance, page 3 of 6

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the Three Months Ended September 30, 2011 and September 30, 2010

	Three Months Ended
	September 30,			September 30,
	2011			2010
	(unaudited)			(unaudited)
Revenues
Energy revenues	$	1,389,159		$	1,395,274
Turnkey & other revenues		29,252			174,303
		1,418,411			1,569,577
Cost of sales
Fuel, maintenance and installation		716,806			763,653
Depreciation expense		318,903			226,006
		1,035,709			989,659
Gross profit		382,702			579,918
Operating expenses
General and administrative		593,558			375,197
Selling		699,898			111,132
Engineering		221,866			154,604
		1,515,322			640,933
Loss from operations		(1,132,620	)		(61,015	)
Other income (expense), net
Interest and other income		11,433			11,779
Interest expense		(142,772	)		(23,280	)
Change in fair value of warrant liability		125,668			-
		(5,671	)		(11,501	)
Loss before income taxes		(1,138,291	)		(72,516	)
Benefit (provision) for state income taxes		41			(5,360	)
Consolidated net loss		(1,138,250	)		(77,876	)
Income attributable to the noncontrolling interest		28,734			(57,148	)
Net loss attributable to American DG Energy Inc.		(1,109,516	)		(135,024	)
Net loss per share - basic and diluted	$	(0.02	)	$	(0.00	)
Weighted average shares outstanding - basic and diluted		45,834,904			44,835,844
Non-GAAP financial disclosure
Loss from operations	$	(1,132,620	)	$	(61,015	)
Depreciation expense		332,368			236,807
Stock based compensation		186,960			37,425
Adjusted EBITDA		(613,292	)		213,217
Grants from rebates and incentives		-			117,898
Total cash inflows (outflows)	$	(613,292	)	$	331,115

American DG Energy Reports Third Quarter 2011 Financial Performance, page 4 of 6

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the Nine Months Ended September 30, 2011 and September 30, 2010

	Nine Months Ended
	September 30,			September 30,
	2011			2010
	(unaudited)			(unaudited)
Revenues
Energy revenues	$	4,270,336		$	3,744,862
Turnkey & other revenues		283,256			513,955
		4,553,592			4,258,817
Cost of sales
Fuel, maintenance and installation		2,799,733			2,649,554
Depreciation expense		921,931			641,249
		3,721,664			3,290,803
Gross profit		831,928			968,014
Operating expenses
General and administrative		1,618,181			1,062,556
Selling		933,848			496,079
Engineering		536,132			587,664
		3,088,161			2,146,299
Loss from operations		(2,256,233	)		(1,178,285	)
Other income (expense)
Interest and other income		31,414			39,947
Interest expense		(246,376	)		(96,085	)
Change in fair value of warrant liability		509,663			-
		294,701			(56,138	)
Loss before income taxes		(1,961,532	)		(1,234,423	)
Provision for state income taxes		(17,071	)		(10,710	)
Consolidated net loss		(1,978,603	)		(1,245,133	)
Less: Income attributable to the noncontrolling interest		(34,808	)		(136,936	)
Net loss attributable to American DG Energy Inc.		(2,013,411	)		(1,382,069	)
Net loss per share - basic and diluted	$	(0.04	)	$	(0.03	)
Weighted average shares outstanding - basic and diluted		45,647,265			43,030,344
Non-GAAP financial disclosure
Loss from operations	$	(2,256,233	)	$	(1,178,285	)
Depreciation expense		954,751			667,436
Stock based compensation		479,205			139,203
Adjusted EBITDA		(822,277	)		(371,646	)
Grants from rebates and incentives		327,138			428,751
Total cash inflows (outflows)	$	(495,139	)	$	57,105

American DG Energy Reports Third Quarter 2011 Financial Performance, page 5 of 6

CONDENSED CONSOLIDATED BALANCE SHEETS

as of September 30, 2011 and December 31, 2010

	September 30,			December 31,
	2011			2010
	(unaudited)			(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	12,111,185		$	3,921,054
Restricted cash		-			65,790
Accounts receivable, net		1,216,674			661,435
Unbilled revenue		12,477			117,846
Due from related party		77,560			52,432
Inventory		517,329			487,724
Prepaid and other current assets		221,142			86,089
Total current assets		14,156,367			5,392,370
Property, plant and equipment, net		14,657,330			14,362,444
Accounts receivable, long-term		90,834			17,034
Other assets, long-term		40,397			-
TOTAL ASSETS		28,944,928			19,771,848
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		486,911			482,917
Accrued expenses and other current liabilities		517,478			370,774
Due to related party		125,018			2,560,720
Capital lease obligations		3,365			3,365
Total current liabilities		1,132,772			3,417,776
Long-term liabilities:
Convertible debentures		12,500,000			-
Warrant liability		166,940			676,603
Capital lease obligations, long-term		4,206			6,730
Other long-term liabilities		46,454			-
Total liabilities		13,850,372			4,101,109
Stockholders’ equity:
American DG Energy Inc. shareholders’ equity:
Common stock, $0.001 par value; 100,000,000 shares authorized; 45,901,404 and 45,598,029 issued and outstanding at September 30, 2011 and December 31, 2010, respectively		45,901			45,598
Additional paid-in capital		30,280,646			28,905,660
Accumulated deficit		(16,160,524	)		(14,147,113	)
Total American DG Energy Inc. stockholders’ equity		14,166,023			14,804,145
Noncontrolling interest		928,533			866,594
Total stockholders’ equity		15,094,556			15,670,739
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	28,944,928		$	19,771,848

American DG Energy Reports Third Quarter 2011 Financial Performance, page 6 of 6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

for the Nine Months Ended September 30, 2011 and September 30, 2010

	Nine Months Ended
	September 30,			September 30,
	2011			2010
	(unaudited)			(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(2,013,411	)	$	(1,382,069	)
Income attributable to noncontrolling interest		34,808			136,936
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		954,751			667,436
Provision for losses on accounts receivable		22,568			42,650
Amortization of deferred financing costs		2,256			6,395
Change in fair value of warrant liability		(509,663	)		-
Stock-based compensation		479,205			139,203
Changes in operating assets and liabilities
(Increase) decrease in:
Restricted cash		65,790			-
Accounts receivable and unbilled revenue		(546,238	)		(199,636	)
Due from related party		(25,128	)		94,312
Inventory		(29,605	)		(114,945	)
Prepaid and other current assets		(130,283	)		13,540
Increase (decrease) in:
Accounts payable		3,994			(343,453	)
Accrued expenses and other current liabilities		146,704			151,208
Other long-term liabilities		46,454			-
Due to related party		(35,702	)		653,078
Net cash used in operating activities		(1,533,500	)		(135,345	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(1,249,637	)		(4,590,790	)
Sale of short-term investments		-			561,847
Net cash used in investing activities		(1,249,637	)		(4,028,943	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible debentures		10,100,000			-
Proceeds from exercise of warrants		-			350,000
Proceeds from sale of common stock, net of costs		-			999,952
Proceeds from sale of subsidiary common stock, net of costs		1,148,401			1,356,037
Proceeds from exercise of stock options		26,798			54,941
Proceeds from related party line of credit		-			2,400,000
Convertible debenture transaction costs		(47,423	)		(21,556	)
Principal payments on capital lease obligations		(2,524	)		(2,524	)
Cancellation of restricted stock		(20	)		-
Distributions to noncontrolling interest		(251,964	)		(200,573	)
Net cash provided by financing activities		10,973,268			4,936,277
Net increase (decrease) in cash and cash equivalents		8,190,131			771,989
Cash and cash equivalents, beginning of the period		3,921,054			3,149,222
Cash and cash equivalents, end of the period	$	12,111,185		$	3,921,211