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AERCO International Receives 2004 Frost & Sullivan Award for Technology Leadership

Palo Alto, Calif. — January 27, 2004 — Frost & Sullivan’s recent analysis, North American Commercial and Institutional Boilers Market, selected AERCO International, Inc. as the recipient of the 2004 Technology Leadership Award for leading the way in high efficiency boiler technology.

Every year, Frost & Sullivan presents this award to the company that has demonstrated excellence in technology leadership within its industry. The award recognizes the recipient’s excellence in all stages of the technology life cycle – incubation, adaptation, take-up, and maturity – to ensure a continuous flow of improvements. By innovating leading-edge concepts, the company has pioneered client applications.

"AERCO was the first company in the North American boilers market to develop and manufacture fully modulating and condensing high-efficiency boilers that enable remarkable energy savings for users," says Frost & Sullivan Industry Analyst Jorge Moreno. "The company has since preserved its reputation as the leader in developing and exploring high efficiency boiler technology."

In designing its high-efficiency boilers, AERCO was determined to develop a way for customers to quickly and accurately change the firing input levels. For this, the company realized that it had to produce its own boiler components and take the lead in research and development.

The first effort – the KC-1000 model – was launched in 1987 and was the only high-efficiency boiler built in North America that was designed to condense and fully modulate at a 14 to 1 turn down rate. In contrast, the traditional on and off boiler types are set up to burn at maximum capacity when the boiler is turned on.

"With a market need to adjust the boilers' firing rates to different load levels, AERCO's high-efficiency boiler technology was nothing short of a breakthrough," notes Moreno. "It allowed end-users to adjust the firing levels across a 14 to 1 turn down rate, enabling much greater fuel burning efficiency of up to 95.0 percent."

In 1998, AERCO introduced the Benchmark model, which was able to satisfy the growing need for large applications using high-efficiency technology. Not only did the company successfully increase the capacity of its existing high-efficiency boiler but it also managed to improve the firing rate to an impressive 20 to 1 turn down rate – a rate that is yet to be matched by any competitor in the industry.

With such a high turn down rate, the Benchmark – which has the capacity of 2 million British thermal units (BTUs)/hour – automatically adjusts to satisfy demand as low as 100,000 BTUs/hour and, as a result, precisely matches end users' needs to deliver up to 98 percent thermal efficiency.

Part of AERCO’s success in developing high-efficiency technology is attributable to its patented air fuel valve that was designed to enable its boilers to have extremely stable combustion levels over the entire operating range. End users with high-efficiency boilers have benefited from cost-effective and seasonal operating efficiency gains, as well as through energy savings and lower operating costs.

AERCO has experienced incredible growth rates for its high efficiency product line. With a new product in development that combines a high turn down with a low nitrous oxide (NOx) technology at highly competitive prices –AERCO is poised to once again raise the bar for high efficiency boilers.

About AERCO International, Inc.

AERCO has set the pace of change in the commercial heating market by designing and manufacturing high-efficiency, hydronic boilers and water heaters that maximize value and return for facility managers, contractors and building owners. The originator of semi-instantaneous, tank-less water heating (1949), today AERCO offers innovative, gas and steam-fired solutions which simplify overall plant infrastructure, reduce total project costs, minimize lifecycle expenses and satisfy environmental requirements of value-driven schools, hospitals and others seeking long-lasting, reliable, high-efficiency equipment with advanced building integration and control capabilities. AERCO’s innovative product designs, renowned manufacturing process, reputation for consumer education, and network of sales agencies are respected by HVAC and plumbing engineers worldwide. For more information about AERCO, please go to http://www.aerco.com.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company founded in 1961, partners with clients to create value through innovative growth strategies. The foundation of this partnership approach is our Growth Partnership Services platform, whereby we provide industry research, marketing strategies, consulting, and training to our clients to help grow their business. A key benefit that Frost & Sullivan brings to its clients is a global perspective on a broad range of industries, markets, technologies, econometrics, and demographics. With a client list that includes Global 1000 companies, emerging companies, as well as the investment community, Frost & Sullivan has evolved into one of the premier growth consulting companies in the world. For more information, visit http://www.frost.com.

Contact:

Stacie Jones
210.247.2450
Stacie.jones@frost.com

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