Acorn Energy Third Quarter Revenue up 40% to $6.5 Million

Gross profit Increases 219% for the quarter; 192% for the nine month period

MONTCHANIN, Del., Nov. 12 /PRNewswire-FirstCall/ -- Acorn Energy Inc. (Nasdaq:
ACFN) an energy technology holding company, today announced results for the
third quarter ended September 30, 2009. Below are the highlights from the
three month and nine month periods:

Q3 2009 Highlights
-- Revenues increased by 40% to $6.5 million
-- Gross profit increased by 219% to $2.9 million
-- CoaLogix' revenues increased by 53% to $2.8 million

-- CoaLogix' gross profit increased by $0.9 million

Nine Month Highlights
-- Revenue increased 81% to $22.7 million
-- Gross Profit increased by 192% to $9.7 million
-- CoaLogix' revenues increased 134% to $12.8 million

-- CoaLogix' gross profit increased 380% or $3.3 million

"All of our innovative companies continue to show solid progress in broadening
their reach and growing their businesses by providing pragmatic technological
solutions that bring efficiencies to the aging and often neglected core energy
infrastructure," said John Moore, CEO of Acorn Energy.

Q3 Financial Review
Revenues for the 2009 third quarter reflected an increase of $1.8 million over
the third quarter of 2008. The increase in sales was attributable primarily to
CoaLogix' increase in sales of $1.0 million from $1.8 million in 2008 to $2.8
million in 2009 combined with the increase in Coreworx' third quarter sales
of $0.6 million as well as a $0.2 million increase in DSIT sales.
-- Gross profit in the third quarter of 2009 increased by $2.0 million or
219% as compared to the third quarter of 2008. The increase in gross
profit was attributable to the inclusion of Coreworx' gross profit in
the third quarter of 2009 of $1.2 million compared to the gross profit
of $0.5 million recorded for Coreworx following our acquisition in
August 2008 and increased gross profit at CoaLogix of $0.9 million, an
increase of 398 %, and $0.3 million at DSIT, an increase of 55 %.
Gross
margins for CoaLogix increased to 25% in the third quarter of 2009
from
a negative gross profit of 13% in the third quarter of 2008. Gross
margin in DSIT increased from 31% in the third quarter of 2008 to 43%
in
the third quarter of 2009 due to higher margin projects worked on in
2009 in DSIT's Naval and RT Solutions segment.

-- Selling, general and administrative expenses ("SG&A") in the third
quarter of 2009 increased by $1.2 million as compared to the third
quarter of 2008. A portion of the increase was attributable to the
inclusion in 2009 of Coreworx' SG&A costs of $1.6 million compared to
the $0.4 million recorded in 2008 with respect to the period following
our acquisition in August 2008. CoaLogix' SG&A costs in the third
quarter of 2009 increased by $0.4 million as compared to the third
quarter of 2008, reflecting increased overhead costs resulting from
the
company's growth and legal fees associated with the EES and Evonik
lawsuits. DSIT's SG&A costs were relatively unchanged. Corporate
general
and administrative costs decreased by $0.4 million reflecting the
effects of the Company's efforts to reduce overhead costs.

On November 4, 2009 Acorn announced that it intends to purchase the 69% of
equity in Gridsense that it currently does not own. This is a timely
development since Gridsense will now have the capital to implement
forthcoming contracts stimulated by grants announced by the U.S. government to
utilities for the adoption of technologies to bring efficiencies into the
national grid. A total government grant and utility commitments of $8 billion
must be spent by March 2011. Gridsense produces the most cost effective remote
two way communication device for monitoring the health of power lines and
transformers, the largest and oldest systems in a utility's network.
Currently, millions of miles of lines and hundreds of thousands of
transformers are inspected physically. They have out-lived their expected 40
year lives and are an accident waiting to happen.

CoaLogix is regenerating SCR( )catalyst used in coal-fired electric plants to
reduce NOx and other pollutants, and such catalysts generally lose
effectiveness after three years of constant use. CoaLogix can regenerate a
catalyst for 60% of the cost of a new one. Within three or four years when the
market reaches equilibrium, the total addressable market is expected to be
between $200 million and $300 million annually. CoaLogix has a dominant 85%
share of the market and is growing rapidly and running near capacity. New
leased facilities will increase capacity by next summer, and enable CoaLogix
to meet increased demand.

DSIT is showing modestly increasing sales and significantly increasing profits
as it moves from development contracts to commercial product sales. It is a
world leader in underwater security for energy installations, of which there
are over 3,000 around the world. Also, the Nuclear Regulatory Commission has
recently ordered all of the 104 nuclear facilities to protect the water intake
systems

Coreworx provides integrated product execution and information control
solutions for mega capital projects in the oil & gas, power and mining
sectors. The Coreworx solution is a proven web-based enterprise software
system that enables engineering and construction contractors and
owner/operators to automate construction management. Coreworx services a
portfolio of projects valued at over $500 billion across more than 50
countries, on more than 400 capital projects with nearly 70,000 users.

Investor Conference Call - Thursday, November 12th at 4:15 pm Eastern Time

The Company will host an investor call today, November 12th at 4:15pm ET to
discuss its third quarter 2009 results and developments. To participate in the
conference call, please dial (800) 860-2442 or (412) 858- 4600 (Intl) (no pass
code required). The call will also be broadcast live on the Internet at
www.acornenergy.com.

If you are unable to participate in the live call, a digital replay of the
call will be available from Thursday, November 12, 2009 at 6:00 PM through
9:00 AM on November 27, 2009 by dialing (877) 344-7529 or (412) 317-0088 and
entering account # 435680.

About Acorn Energy, Inc.
Acorn Energy, Inc. is a publicly traded holding company with equity interests
in CoaLogix, Coreworx, DSIT and Gridsense. These companies leverage advanced
technologies to transform and upgrade the energy infrastructure around the
world. Acorn companies are focused on three problems in the energy sector:
improving the efficiency of the energy grid, reducing the risk for owners of
large energy assets, and reducing the environmental impact of the energy
sector. Acorn's strategy is to take primarily controlling positions in
companies led by great entrepreneurs. For more information visit
http://www.acornenergy.com

Safe Harbor Statement
This press release includes forward-looking statements, which are subject to
risks and uncertainties. There is no assurance that CoaLogix, DSIT, Coreworx
or Gridsense will continue to grow their respective businesses. 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.

--Financial Tables to Follow--

Investor Contact:
Paul Henning
Cameron Associates
(212) 245-8800
Paul@cameronassoc.com

ACORN ENERGY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (unaudited)
(in thousands, except per share data)

Nine months ended Three months ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Sales
Catalytic regeneration
services $12,761 $5,441 $2,824 $1,840
Projects 6,156 5,959 2,154 1,918
Software license and services 3,487 767 1,385 767
Other 317 363 100 103
--- --- --- ---
22,721 12,530 6,463 4,628
------ ------ ----- -----
Cost of sales
Catalytic regeneration
services 8,592 4,573 2,126 2,075
Projects 3,566 4,091 1,215 1,314
Software license and services 599 257 183 257
Other 234 282 78 85
--- --- -- --
12,991 9,203 3,602 3,731
------ ----- ----- -----
Gross profit 9,730 3,327 2,861 897
Operating expenses:
Research and development
expenses, net of SRED credits
of $1,016 in the nine months
ended September 30, 2009 76 510 424 402
Acquired in-process research
and development -- 551 -- 551
Impairments 80 3,000 -- 2,454
Selling, general and
administrative expenses 13,292 8,094 4,565 3,401
------ ----- ----- -----
Total operating expenses 13,448 12,155 4,989 6,808
------ ------ ----- -----
Operating loss (3,718) (8,828) (2,128) (5,911)
Gain on early redemption of
convertible debentures -- 1,259 -- --
Finance income (expense), net 213 (2,950) 297 (50)
Gain on sale of Comverge
shares 1,403 8,861 176 3,079
Gain on outside investment in
Company's equity investments,
net -- 7 -- 7
-- -- -- --
Loss before taxes on
income (2,102) (1,651) (1,655) (2,875)
Tax benefit (expense) on
income 72 (689) 72 (691)
-- ---- -- ----
Loss from operations of the
Company and its
consolidated subsidiaries (2,030) (2,340) (1,583) (3,566)
Share in losses of GridSense (129) (194) -- (60)
Share in income (losses) of
Paketeria 263 (1,560) 263 (899)
--- ------ --- ----
Net loss (1,896) (4,094) (1,320) (4,525)
Net (income) loss attributable
to non-controlling interests (48) 284 96 204
--- --- -- ---
Net loss attributable to Acorn
Energy Inc. ($1,944) ($3,810) ($1,224) ($4,321)
======= ======= ======= =======
Basic and diluted earnings per
share attributable to Acorn
Energy Inc.:
Net loss per share
attributable to Acorn Energy
Inc. - basic and diluted ($0.17) ($0.34) ($0.11) ($0.37)
====== ====== ====== ======
Weighted average number of
shares outstanding
attributable to Acorn Energy
Inc. - basic and diluted 11,365 11,285 11,186 11,538
====== ====== ====== ======

ACORN ENERGY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except share and per share data)

As of As of
December 31, September
ASSETS 2008 30, 2009
------------- -----------
(unaudited)
-----------
Current assets:
Cash and cash equivalents $15,142 $12,018
Restricted deposit 2,157 970
Accounts receivable, net 4,524 4,606
Unbilled work-in-process 581 1,728
Inventory 1,148 2,493
Other current assets 2,080 2,071
----- -----
Total current assets 25,632 23,886
------ ------
Property and equipment, net 2,447 2,901
Available for sale - Investment in Comverge 2,462 --
Investment in GridSense 129 --
Investment in EnerTech 1,117 2,037
Funds in respect of employee termination
benefits 1,677 1,863
Restricted deposit 579 --
Other intangible assets, net 10,357 10,085
Goodwill 6,342 6,637
Other assets 313 355
--- ---
Total assets 51,055 47,764
====== ======
LIABILITIES AND EQUITY
Current liabilities:
Short-term bank credit and current
maturities of long-term debt 445 820
Notes payable 3,400 --
Trade accounts payable 2,285 2,391
Accrued payroll, payroll taxes and social
benefits 1,314 1,319
Other current liabilities 4,350 3,196
----- -----
Total current liabilities 11,794 7,726
------ -----
Long-term liabilities:
Liability for employee termination
benefits 2,651 2,892
Other liabilities 487 581
--- ---
Total long-term liabilities 3,138 3,473
----- -----
Equity:
Acorn Energy Inc. Common stock - $0.01 par
value per share:
Authorized - 20,000,000 shares; Issued
-12,454,528 at December 31, 2008 and
12,485,086 at September 30, 2009 124 124
Additional paid-in capital 54,735 56,460
Warrants 1,020 978
Accumulated deficit (17,587) (19,531)
Treasury stock, at cost - 841,286 and
1,275,081 shares for December 31, 2008
and September 30, 2009, respectively (3,719) (4,827)
Accumulated other comprehensive loss (425) (208)
---- ----
Total Acorn Energy Inc. shareholders'
equity 34,148 32,996
Non-controlling interests 1,975 3,569
----- -----
Total equity 36,123 36,565
------ ------
Total liabilities and equity $51,055 $47,764
======= =======

SOURCE Acorn Energy, Inc.

Investor Contact: Paul Henning, Cameron Associates, +1-212-245-8800,
Paul@cameronassoc.com