ACORN ENERGY, INC. Announces Year End Results and Highlights

MONTCHANIN, Del., April 17 /PRNewswire-FirstCall/ -- ACORN ENERGY, INC.
(Nasdaq: ACFN), a holding company focused on intelligent energy
infrastructure, today announced that it has filed its Annual Report on Form
10-K for the year ended December 31, 2007. The Form 10-K provides full
disclosure and an analysis of the result of operations for the year. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080205/NYTU084LOGO)

Highlights during and following the fourth quarter include:

-- The Company created CoaLogix, Acorn's new platform for participating in
the burgeoning market for clean coal solutions and acquired SCR-Tech, a
leader in catalyst cleaning and regeneration for coal and other fossil
fueled plants in November, 2007. SCR-Tech is the cornerstone of Coal
Vision 360, CoaLogix's blueprint for improving the environmental
footprint and efficiency of coal-fired generation plants. In March
2008, CoaLogix announced that Enertech III has taken a 15% position in
CoaLogix.
-- The Company raised $29 million through the sale of a portion of its
Comverge shares in a Citigroup/Goldman Sachs led secondary follow-on
offering in December 2007. This gave Acorn the liquidity to further
develop its existing business, eliminate debt and finance future
acquisitions, while remaining Comverge's largest shareholder.
-- The Company demonstrated renewed financial vigor by returning to the
NASDAQ in December 2007 and by upgrading its listing to the more
prestigious NASDAQ Global Market in February 2008.
-- The Company completed its acquisition of a significant minority
interest in GridSense in January 2008, providing the Company a strong
foothold in Asia and the emerging field of remote monitoring and
control systems for electrical utilities
-- In January 2008 the Company completed the redemption of its outstanding
convertible debentures and as a result has virtually no debt.
-- Also in February, the Company's DSIT subsidiary, a leader in the field
of threat detection for underwater energy infrastructure, announced
$1.4 million in new contracts involving the integration of subsystems
developed by DSIT into systems built by customers and opportunities to
expand the projects in the future.
-- The CoaLogix subsidiary announced in March that in the first two months
of 2008 it had secured new contracts from major U.S. utilities
potentially representing more than twice its entire 2007 sales.
-- Acorn signed a letter of intent in March 2008 to acquire Software
Innovation, the developer of Coreworx(TM), a world-leading software
tool for collaboration for energy and other infrastructure for capital
projects.

John A. Moore, President and Chief Executive Officer of Acorn Energy
remarked: "In 2007 we began to implement Acorn's strategy of accelerating the
growth of emerging ventures that promise meaningful improvement in the
environmental and economic efficiency of energy infrastructure. We have used
the proceeds of the sale of a portion of our Comverge shares to clean-up our
capital structure and begin planting new acorns -- with our purchase of
SCR-Tech and acquisition of significant positions in Gridsense and Local Power
-- that we hope will become tomorrow's oaks. In the months ahead we look
forward to continued growth in our CoaLogix business and completion of our due
diligence on the Software Innovation acquisition. We are also engaged in
serious discussions regarding additional clean coal and other energy
intelligence sector opportunities."
About Acorn Energy, Inc.
Acorn Energy is a publicly traded holding company focused on improving the
efficiency of the energy grid and reducing the environmental impact of the
energy sector. Acorn Energy's operating companies leverage advanced
technologies to transform the existing energy infrastructure. Acorn's
strategy is to take primarily controlling positions in companies led by great
entrepreneurs and add value by supporting those companies with marketing,
strategy and business development. Acorn Energy is a global company with
equity interests in Comverge, CoaLogixDSIT, Gridsense, Local Power and
Paketeria. For more information visit www.acornenergyinc.com.
Safe Harbor Statement
This press release includes forward-looking statements, which are subject
to risks and uncertainties. There is no assurance that CoaLogix will continue
to grow its business. The completion of the acquisition of Software
Innovation Inc. referred to in this release is subject to completion by Acorn
Energy, Inc. of its due diligence and execution of a definitive purchase
agreement and any conditions to closing. There is no assurance Acorn Energy
will be able to complete its acquisition of Software Innovation. A complete
discussion of the risks and uncertainties which may affect Acorn Energy's
business generally is included in "Risk Factors" in the Company's most recent
Annual Report on Form 10-K as filed by the Company with the Securities and
Exchange Commission.
CONTACT:
Christianna Miller
Director of Communications
Acorn Energy, Inc.
(302) 656-1707
cmiller@acornenergyinc.com

ACORN ENERGY, INC.
(FORMERLY KNOWN AS ACORN FACTOR, INC.)
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
ASSETS As of December 31,
2006 2007
Current assets:
Cash and cash equivalents 1,521 19,644
Accounts receivable, net 1,373 1,775
Unbilled work-in-process 393 1,784
Inventory -- 119
Other current assets 316 1,391
Total current assets 3,603 24,713
Property and equipment, net 445 1,335
Available for sale -- Investment in Comverge -- 55,538
Investment in Paketeria 1,212 1,439
Other investments -- 668
Funds in respect of employee
termination benefits 1,568 1,607
Restricted cash -- 1,517
Other intangible assets, net 48 5,987
Goodwill 97 3,945
Other assets 285 218
Total assets 7,258 96,967
LIABILITIES AND SHAREHOLDERS' EQUITY
(CAPITAL DEFICIENCY)
Current liabilities:
Short-term bank credit 462 590
Current maturities of long-term debt
and Note payable -- related party 326 171
Convertible debt, net -- 4,237
Accounts payable 378 910
Accrued payroll, payroll taxes and
social benefits 478 1,118
Other current liabilities 1,700 3,844
Total current liabilities 3,344 10,870
Long-term liabilities:
Investment in Comverge, net 1,824 --
Liability for employee termination benefits 2,545 2,397
Long-term debt -- 12
Deferred income taxes -- 16,038
Other liabilities 6 325
Total long-term liabilities 4,375 18,772
Commitments and contingencies
Shareholders' equity (capital deficiency):
Common stock -- $0.01 par value per share:
Authorized -- 20,000,000 shares;
Issued -10,276,030 and 11,134,795
shares at December 31, 2006 and 2007 102 111
Additional paid-in capital 43,987 49,306
Warrants 888 1,330
Accumulated deficit (41,904) (9,692)
Treasury stock, at cost -- 777,371
shares for December 31, 2006 and 2007 (3,592) (3,592)
Accumulated other comprehensive
income 58 29,862
Total shareholders' equity (capital
deficiency) (461) 67,325
Total liabilities and shareholders'
equity (capital deficiency) $7,258 $96,967

ACORN ENERGY, INC.
(FORMERLY KNOWN AS ACORN FACTOR, INC.)
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT NET INCOME (LOSS) PER SHARE DATA)

Year ending December 31,
2006 2007
Sales:
Projects $3,186 $4,061
Catalytic regeneration services -- 797
Services 863 730
Other 68 72
Total sales 4,117 5,660
Cost of sales:
Projects 2,022 2,891
Catalytic regeneration services -- 681
Services 741 676
Other -- --
Total cost of sales 2,763 4,248
Gross profit 1,354 1,412
Operating expenses:
Research and development expenses, net 324 415
Selling, marketing, general and
administrative expenses 4,658 5,390
Total operating expenses 4,982 5,805
Operating loss (3,628) (4,393)
Finance expense, net (30) (1,585)
Gain on sale of shares in Comverge -- 23,124
Gain on Public offering of Comverge -- 16,169
Loss on private placement in Paketeria -- (37)
Other income -- settlement of a claim 330 --
Income (loss) before taxes on income (3,328) 33,278
Income tax benefit (expense) (183) 445
Income (loss) from operations of the
Company and its consolidated
subsidiaries (3,511) 33,723
Share in losses of Paketeria (424) (1,206)
Share in losses of Comverge (210) --
Net income (loss) from continuing
operations (4,145) 32,517
Loss on sale of discontinued
operations and contract
settlement, net of tax (2,069) --
Net income from discontinued
operations, net of tax 78 --
Net income (loss) ($6,136) $32,517

Basic net income (loss) per share:
Income (loss) per share from
continuing operations ($0.48) $3.30
Discontinued operations (0.23) --
Net income (loss) per share ($0.71) $3.30
Weighted average number of shares
outstanding -- basic 8,689 9,848
Diluted net income (loss) per share:
Income (loss) per share from
continuing operations ($0.48) $2.80
Discontinued operations (0.23) --
Net income (loss) per share ($0.71) $2.80
Weighted average number of shares
outstanding -diluted 8,689 12,177

SOURCE Acorn Energy, Inc.

Christianna Miller, Director of Communications of Acorn Energy, Inc.,
+1-302-656-1707, cmiller@acornenergyinc.com