Presented by: Ervin Cash, CEO

APPLICATION - DRIVEN CLIENT SOLUTIONS

For Domestic Hot Water and Space Heating

Discussion Overview
About AERCO Client Solution Example 1:

San Diego Marriott Marquis

Client Solution Example 3: University of North Texas

Client Solution Example 2: Las Vegas Hotel / Casino

Sixty years of innovation

it all started with a vision

Goal: deliver on-demand, + 2 F temp controlled water heating without storage

Founder

Henry Angelery

Angelerys Solution: self-descaling, helical-coil heat exchanger Design remains unique to AERCO, and is still sold today!

and today innovation is a core competency

Seasonal Efficiencies

Reverse Fiber Mesh

Ultra Low Nox

Air-Fuel Delivery

O2 Monitoring/Trim

Internet

20 to 1 Turndown

Highest Btu to Footprint Ratio

439 SS HX
Firetube SS/ASME

Remote Monitoring

Proud to say:

Commitment to Investment
that enables process capability and performance

With 30,000,000 btus of R&D Testing

Moved into new, green-field 165,000 sqft mfg facility May 2010

Prototype and Life Cycle Testing

Quality
is a core part of our Manufacturing Discipline and Process Capability
Flow Manufacturing

Robotic Welder
Benchmark Series Heat Exchanger

Automated Braze Cell

Innovation Series Heat Exchanger

CMM (Coordinate Measurement Machine)

Dimensional Tolerances

Market Needs Drive Our Product and Application Solutions

Key Markets

Education: K-12

Education: University/ Colleges

Government

Healthcare

Lodging/ Entertainment

Multi-Family

Office/ Industrial Buildings

Boiler and Water Heater Product Platforms

Boilers
Btu/h (input): 6,000,000 3,000,000 2,000,000 1,000,000
Models:

Stainless Steel
Fire Tube (Benchmark Series)

Water Heaters

Aluminum
Cast

6000

Models:

Models: 3000 2500 2000 1500 1000 750

Size/Footprint O2 Trim/On AER

Stainless Steel
Stainless Steel
Water Tube Fire Tube (Innovation Series)
1350 1060 800/600
Space for BTU Tankless

Stainless Steel
Water Tube

500,000 399,000 220,000

1000 750 500 399 220

3060 2677 2295 1912 1530 1123 962 802 641 481 321
Outdoor Enclosure Redundancy

Models: 1000 750 500 399 220

Break-Fix

Break-Fix

Largest installed multi-boiler system: 99,000,000 Btu/h

Solutions Designed to Support Challenging Applications

AERCO Data Center

Internet

Campus Data Center or IDF

Router Firewall Switch

Building A
Switch

LAN

Products Application Knowledge Engineered Packages Services (Pre- and Post- Sale)
Remote Monitoring - OnAER

Worldwide Sales Offices

UK Poland Bulgaria

60 Offices
North America
Mexico El Salvador Egypt Saudi Arabia Thailand Jordan China (Singapore) S. Korea (JV) Taiwan Philippines

Malaysia Ecuador Peru Singapore

Bolivia

Argentina Uruguay Chile

60 North America Offices, 22 Outside North America

The AERCO Advantage

Application Expertise
Hydronic Heating

Technology
System Optimization

Services
Parts, Services Equal 2 New Refurbishment Program: Retrofit and Upgrades Extended Warranty Factory-Trained Service Technicians

Domestic Water Heating Controls/ Communication System Accessories

Remote Monitoring

Trending and Diagnostics

Energy, water and operational cost reductions

Operational sustainability Occupant health and welfare System reliability and equipment uptime

Peace of Mind

Case Studies

CLIENT SOLUTION EXAMPLES

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: 1984 - North Tower 1987 - 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 1

AERCO Advantage
Easy upgrade:
- Small and light enough to be rigged through a standard doorway
Tank

Installation before Tank Removal

Innovation

No cranes or costly rigging required

- Innovations rode the elevator up to 26th floor mechanical room

NO downtime:
- Small enough to be installed before removal of the 1500 gal tank

Reduced installation costs:

- Sidewall vented with readily available PVC

Full-time peak efficiency

- Around-the-clock onboard WH Management system

Maximum longevity:
- All stainless-steel heat exchanger design ensures long life

Client Solution Example 1

Result
In July, the San Diego Marriott was host hotel of the 2013 Comic-Con Convention Hotel was at peak occupancy with 2-4 per room OnAER logged that no more than 3 units were required to handle the sustained peak load during the entire 4 days of the convention! OnAER Remote Monitoring

Client Solution Example 2 Overview

Client : MGM Resorts International - Mirage - MGM Grand Location: Las Vegas, NV Vertical Experience : 15 + Hotel/ Casino Resorts

Client Solution Example 2 Challenge

Las Vegas Hotel/ Casino properties need to upgrade inefficient HVAC systems as part of their Green Advantage Sustainability Program
Incorporate environmentally responsible practices that effectively lowers their carbon footprint throughout all of operations

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.
SmartPlate

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
Benchmark

Client Solution Example 2

Before

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+
After

Client Solution Example 2 Client Property: MGM Grand

Products: Benchmark 6000, OnAER Remote Monitoring Application: Domestic Showers/ Pool Heating

AERCO Advantage
Reduced Operating Costs - 94.5% 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 (O2 ) Monitoring

Client Solution Example 2 Result

The property will be installing the other (3) BMK6000s by the end of 2013 The full system (4) BMK6000s 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

Client Solution Example 3 Overview

Client : University of North Texas (UNT); Denton, Texas

Vertical : UNT: 3rd largest university in Texas USA: 26th largest public university

Students: 36,000 Year founded: 1890

Client Solution Example 3

Challenge
Central steam plant supplied heating for most of the classroom/ admin buildings As the campus grew, each new building had a separate steam boiler or 80% efficient hydronic heating boiler Each dorm building used steam boilers for space heating and a mix of either indirect steam storage tank heaters or direct-fired 82% storage heaters 2002- Facilities Department began to upgrade with high-efficiency boilers as funds became available 2011- The Housing Department began a similar process to upgrade its aging boilers and domestic water heaters that were beginning to fail

Client Solution Example 3

AERCO Advantage
Benchmark Boiler, Innovation Water Heaters: Small footprint for easy installation All-SS HEX design for longevity Identical air/fuel delivery, combustion and control systems for consistent, high performance The Innovation On-Demand/ Tankless designs- Space Savings, Easy Retrofit Controls: Increased Efficiency
Water Heater Management AERCO Control System

Client Solution Example 3 Result

By 2014, UNT will have in place:
(16) INNVOVATIONs (50) BENCHMARKs

Natural gas savings:

The upgraded central steam plant alone consumed 57% less gas (6,465 mcf vs. 11,389 mcf) than it did with the previous heating system

and these are just three examples.

In addition to our technology, applications know-how, and solution-orientation, we add: A responsive staff with an entrepreneurial can-do spirit A company commitment to stand with you until youre satisfied

Thank you!