Onsite Energy Corp. (OTCBB: ONSE; "Onsite") Monday announced that it has signed an agreement with a major frozen food processing company located in Central California.

This project is in addition to the projects previously announced at Central Cold Storage, Del Mar Foods and Grimmway Farms. Onsite is implementing a turnkey project to improve the efficiency of the refrigeration system at the facility that involves installation of new condensers and purgers.

In addition, Onsite is working as project manager and as the administrator of the incentives for the project provided by California's Standard Performance Contract (SPC) program. This includes the detailed monitoring and verification of energy savings required under the program.

Revenues to Onsite are anticipated to be approximately $525,000 for the project plus a share of the energy savings for the first two years. The customer is anticipated to realize approximately $95,000 in annual energy savings from the efficiency measures and approximately $400,000 in incentives.

This project is another in a growing list of customers in the food processing and refrigerated cold storage industry. "Onsite is a strong supporter of the food processing industry and the California League of Food Processors. Onsite is committed to work effectively with the food processing and refrigeration community on energy saving opportunities," said Elizabeth Lowe, Onsite's vice president responsible for Northern California sales and operations. "We expect additional projects from this customer as the SPC incentive program continues to make project paybacks attractive for these large industrial customers."

Onsite Energy Corp. is a comprehensive energy service company that assists its customers in reducing electricity and fuel costs by developing, designing, constructing, owning and operating efficient, environmentally sound energy projects. Onsite also offers a full range of professional consulting services, which include direct access planning, market assessments, business strategy and public policy analyses, utility deregulation and environmental impact/feasibility studies. It is Onsite's mission to help customers save money through independent energy solutions.

Safe Harbor Statement

Included in this release may be "forward-looking statements." Although Onsite believes the financial expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Additional information regarding factors that could potentially affect Onsite's financial results may be found in Onsite's filings with the Securities and Exchange Commission.