APPLICATION - DRIVEN CLIENT SOLUTIONS For Domestic Hot Water and Space Heating Presented by: John Brody

About AERCO Client Solution Example 1: San Diego Marriott Marquis Client Solution Example 2: Las Vegas Hotel / Casino Discussion Overview

Goal: deliver on-demand, + 2 F temp controlled water heating without storage Sixty years of innovation it all started with a vision… Angelery’s Solution: self-descaling, helical-coil heat exchanger Design remains unique to AERCO, and is still sold today! Founder Henry Angelery

…and today innovation is a core competency 20:1 turndown 439 SS HX Reverse Fiber Mesh Ultra Low Nox O2 Monitoring/Trim Primary-Variable Systems Highest Btu to Footprint Ratio Firetube SS/ASME Remote Monitoring Internet Seasonal Efficiencies

Commitment to Investment that enables process capability and performance New165,000 sq ft HQ and manufacturing facility in May 2010, Blauvelt, NY Prototype and Life Cycle Testing Automated Braze Cell Innovation Series Heat Exchanger Robotic Welder Benchmark Series Heat Exchanger

Key Markets Education: K-12Education: University/ Colleges GovernmentHealthcare Lodging/ EntertainmentMulti-FamilyOffice/ Industrial Buildings

Boiler and Water Heater Product Platforms Boilers Water Heaters Btu/h (input): 6,000,000 3,000,000 2,000,000 1,000, , , ,000 Stainless Steel Fire Tube (Benchmark Series) Models: Aluminum Cast Models: Outdoor Enclosure Redundancy Size/Footprint O2 Trim/On AER Stainless Steel Fire Tube (Innovation Series) /600 Tankless Stainless Steel Water Tube Models: Stainless Steel Water Tube Models: Largest installed multi-boiler system: 99,000,000 Btu/h Products Application Knowledge Engineered Packages Services (Pre- and Post- Sale)

64 Offices North America Singapore Malaysia Thailand Philippines Taiwan China (Singapore) S. Korea (JV) Saudi Arabia Egypt Jordan Bulgaria Poland UK Uruguay Argentina Chile Bolivia Peru El Salvador Mexico Ecuador 60 North America Offices, 22 Outside North America Worldwide Sales Offices

CLIENT SOLUTION EXAMPLES Case Studies

Client Solution Example 1 Overview Client : San Diego Marriott Marquis Location: San Diego, CA Vertical : Full-service resort-style property that includes meeting space, multiple restaurants, marina Year(s) built: North Tower South Tower Size: 1.4 million sq. ft Rooms: 1,362

Client Solution Example 1 Challenge Two leaking tanks on the 26th floor mechanical room of the North Tower 30 years old with a rated efficiency less than 80% Hot Water for 681 hotel rooms, 25 floors

Client Solution Example 1 AERCO Solution -(6) Innovation Water Heaters - Water Management System -OnAER Remote Monitoring AERCO Advantage Reduced Operating Costs - 96% Efficient Space Savings, Easy Retrofit - On Demand/ Tankless- Small Footprint Increased Efficiency - Water Heater Mgmt Peace of Mind - OnAER Remote Monitoring

Client Solution Example 2 Overview Client : MGM Resorts International - Mirage - MGM Grand Location: Las Vegas, NV

Client Solution Example 2 Client Property: Mirage Products: (10) Benchmark 3.0, (3) SmartPlate Double Application- Hydronic heating loop which includes pool heating, domestic water heating (through SmartPlates) and space heating. AERCO Advantage Reduced Operating Costs - 95% Efficient Space Savings, Easy Retrofit - Small Footprint Serviceability Increased Efficiency - AERCO Control System Space Saving Design- TEN BMK3.0 boilers fit in the same footprint of TWO mid efficiency boilers No downtime - during the full installation SmartPlate Benchmark

Client Solution Example 2 Result AERCO system solution met their needs of: Efficiency Space Serviceability The systems proved highly reliable with the added benefit of low-cost maintenance. Operating cost saving / year: $500,000+

Client Solution Example 2 Client Property: MGM Grand Products: Benchmark 6000, OnAER Remote Monitoring Application: Domestic Showers/ Pool Heating AERCO Advantage Reduced Operating Costs % efficient Reduced "greenhouse" gasses - low emissions Space savings / Compact Footprint - 66% the size of the original installation Vent material savings – Replaced existing 36” venting with 12” SS venting; 100% savings Pro-active maintenance - Remote Monitoring with Oxygen (O 2 ) Monitoring

Client Solution Example 2 Result The property will be installing the other (3) BMK6000’s by the end of 2013 The full system (4) BMK6000’s will fit into the same footprint as one the mid efficiency boiler Installation will take place with no downtime MGM is also working on plans to replace the rest of the mechanical system

Thank you! John Brody, Director of Sales AERCO International Inc.