Acorn Energy, Inc (ACFN), the digital energy company is a holding company focused on making energy better by providing digital solutions for energy infrastructure asset management. The four businesses in which we have controlling interests, improve the world's energy infrastructure by making it: more secure - providing security solutions for underwater energy infrastructure (DSIT); more reliable - providing condition-based monitoring to critical assets on the electric grid (GridSense, OmniMetrix) and more productive and efficient - increasing oil and gas production while lowering costs through use of permanent ultra-high sensitive seismic tools that allow for a more precise picture of reservoirs (US Seismic). This is the first ever MicroCapClub company presentation featuring Acorn Energy (ACFN). Investors Neil Cataldi and DavidS join me while we listen and provide feedback to John Moore CEO of Acorn Energy. We hope you enjoy this medium, and we look forward to doing more interactive company presentations in the future with companies we find interesting. Disclosures: ACFN is a sponsor of MicroCapClub. Ian Cassel, Neil Cataldi, and DavidS do not own shares of ACFN. The MicroCapClub (mc2) is an exclusive micro cap forum focused on micro cap companies (sub $300m market cap). The MicroCapClub was created and founded by Ian Cassel as a way to share ideas and to learn from other seasoned like-minded micro cap investors. Our goal at MicroCapClub.com is quality membership and quality stock ideas. If you are an experienced micro cap investor, feel free to Apply today.

1. The Digital Energy Company
October 2012
We Make Energy Better

2. Safe Harbor Statement
Certain of the matters discussed in this presentation contains statements that are forward-looking, such
as statements relating to results of operations, financial condition, business development activities and market
dynamics. Such forward-looking information involves important risks and uncertainties that could significantly affect
anticipated results in the future and, accordingly, such results may differ materially from those expressed in any
forward-looking statements made on or behalf of Acorn Energy.
All statements other than statements of historical fact in this presentation regarding Acorn Energy’s
future performance, revenues, margins, market share and any future events or prospects are forward-looking
statements.
For more information regarding risks and uncertainties that could affect Acorn Energy’s results of
operations or financial condition review Acorn Energy’s filings with the Securities and Exchange Commission (in
particular, it’s most recently filed Form 10-K and Form 10-Q).
Acorn Energy’s forward-looking statements are not guarantees of future performance and the actual
results or developments may differ materially from the expectations expressed in the forward-looking statements.
As for the forward-looking statements that relate to future financial results and other projections, actual results will
be different due to the inherent uncertainties of estimates, forecasts and projections and may be better or worse
than projected and such differences could be material.
Acorn Energy undertakes no obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
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3. The Digital Energy Company
● Why should you own ACFN today?
● Strong history of creating shareholder value
● Strong balance sheet and dividend
● Big vision of transforming the oil and gas industry and electric grid
● Cleaner
● Safer
● More reliable
● Cheaper
● We are pioneering the Enercosm….
….the coming world of networked energy that resembles biological systems. This new era
will be driven by economies of connection – the benefits provided by vast networks of
inexpensive sensors connected to operations centers via wireless communication but
making decisions locally. The Enercosm will change our energy systems from batch to real-
time and will yield huge productivity gains for our society and outsized returns for
investors who understand its importance.
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4. Growth Story
Accelerating the digital oilfield revolution Enabling a self-healing, self-balancing grid
Securing the world’s energy assets 24/7 monitoring of power generation infrastructure
• Grow 2011 revenues 5x by 2014 • 4 strong businesses
• Majority controlled platform
investments (energy, security) • Great customer interest
• Growth capital to accelerate
organic development of existing
businesses
•Management we know and feel
comfortable with
• Opportunistic M&A
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5. Proven Track Record- $20 M raised to create $150M Value
September 2005 2007 August 2011
• JAM and other • April COMV IPO @ • Sell CoaLogix for
investors initiate 13D $250MM Valuation $101 MM
• $10MM Market Cap • December Secondary • 5x Trailing Revenue
@ $600MM Valuation
• March 2006 JAM ACFN nets $50MM • ACFN nets $61 MM
appointed CEO
• Buy CoaLogix for $9.7
MM
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6. Evolution Of Oil Well Technology
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7. History and Future of Seismic
Evolution from 2D to 4D Seismic
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8. The Biggest Problem Facing the O&G Industry Today
Cost to replace each barrel of oil produced is up 350%
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9. Value Proposition
Replace This… With This
Electronic-based Sensors Optical Fiber Sensor
• USSI Replaces Bulky, Expensive, Unreliable Electronic Sensors with Fiber Sensors
• No copper wire, electronics, or electrical power at the sensor
• Sensors are inherently safe – no sparks or heat generated
• Sensor data can be transmitted for miles without any performance degradation
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10. How It Works
Laser Light
Optical Interrogation
Unit
Downhole FO
Geophone Array
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11. Proven Fiber Optic Technology
• LWWAA is the largest fiber optic sensor system in production, valued at more than $450mm
•USSI CEO (Jim Andersen) started and led Litton’s (now NG) fiber optic strategic business unit
• Key members of the LWWAA team have migrated over to USSI
• USSI has commercialized the
technology which has resulted in
improved reliability and lower cost
•USSI has its own IP
•USSI licensed NG technology
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12. USSI Fiber Optic Geophone vs. Conventional Geophone
● Side-by-Side Comparison
USSI Geophone
• USSI’s 3-Axis Fiber Optic Geophone vs. Conventional 3- Electronic
Axis Geophone Geophone
• Both at approximately 300 ft well depth
Well Head
• USSI’s product demonstrated superior performance
under actual oilfield conditions
New Iberia - LO Fayetteville - AK Devine - TX
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13. Competitive Advantage
US DOE Lawrence Berkeley National Laboratory (LBNL) Richmond Field test site
USSI fiber optic accelerometer
frequency response is more than
300x standard seismic geophone
10,000.0
1,000.0
Scale factor (Volts/g)
100.0 Fiber optic
accelerometer
Geospace OMNI-
2400 geophone
10.0
1.0
0.1
1 10 100 1,000
Frequency (Hz)
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14. USSI Annual Potential Market (Seismic Equipment)
1,000
1,000 In Million USD
800
600
400
300
200
200 150
0
VSP Ocean Bottom Seismic Streamers Microseismic
Cables
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15. What is Hydrofrac Monitoring?
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16. The DOE believes in 100% micro-seismic monitoring
Secretary of Energy Advisory Board
Natural Gas Subcommittee
Shale Gas Production
Second Ninety Day Report
November 18, 2011
Annex C – Subcommittee Recommendations
10. Adopt best practices in well development and construction, especially casing,
cementing, and pressure management. Pressure testing of cemented casing and state-
of-the-art cement bond logs should be used to confirm formation isolation.
Microseismic surveys should be carried out to assure that hydraulic fracture growth is
limited to the gas producing formations. Regulations and inspections are needed to
confirm that operators have taken prompt action to repair defective cementing jobs.
The regulation of shale gas development should include inspections at safety-critical
stages of well construction and hydraulic fracturing.
11. Additional field studies on possible methane leakage from shale gas wells to water
reservoirs.
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17. USSI – Halliburton Joint Field Test: July 2012
Multi-day test in New Iberia, Louisiana to compare and contrast data collected from USSI’s fiber optic sensor
system with Halliburton’s proprietary DAS system and conventional down-hole geophone system. Data
analysis in process with final results pending.
Confidential 17

18. E&P Companies Need to Improve their NPV
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19. Stark Difference Between a Good Well and a Poor One
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20. Key is Correct Understanding of the Subsurface
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21. Small Increase in Well Productivity Yields Huge Returns
Upfront Investment:
$300,000 to survey before fraccing
Estimated savings by eliminating 30% unproductive
frac stages=
$7,000,000
To Improve Yields:
$400,000 per well x 8 = $3,200,000
Results:
- $33M @ 10% improvement
- $65M @ 20% improvement
- $100M @30% improvement
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22. Fiber optic geophones for microseismic
Market Drivers Highlights Financial Snapshot
• 4-D mapping • Congressional Subcommittee • $1.3M Rev in 2011
• Need for more sensitive, • Shipped world’s largest
more rugged, cheaper sensors down-hole optical array • $1.9M in backlog
• STEP-change (June ’12) • Implementing efficiency
• Shipped all optical marine improvements
• Address environmental
concerns and productivity seismic array (June ‘12) • 85% ownership*
needs of the fracking industry • NG license for interrogator
• 7 demos to date
$1Bn+ TAM
• 20,000 wells fractured in 2010 (less than 3% use micro-seismic)
• $700K per well
* Fully-diluted stake
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23. Sensing technologies to detect and alert
security teams to the presence of U-W
threats to critical energy infrastructure
Market Drivers Highlights Financial Snapshot
• Emerging market economy • 70% Global Market Share; 5 • $10.5M Rev in 2011
heavily reliant on port and Reference Clients
energy infrastructure • $9.5M in backlog as @ Q2’12
• BIRD funding for world’s first
• Global insecurity on the passive/active sonar system • 35% Gross Margin in 2011
rise/growing awareness of
• Selected for strategic tunnel • 84% Ownership Stake
underwater threats
• Credibility of Israeli detection project
technology
$3.5 B+ TAM
• 3,500 water-based energy terminals at $1M per terminal
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24. Cost-effective sensors for transformers and power
lines (easy retrofit) to help utilities improve
electric grid
Market Drivers Highlights Financial Snapshot
• Aging transformer fleet • Partnership with CA utility to • $7.1M Rev in 2011
• Need for digital age reliability measure PV’s effect on grid
• 2 utilities use LineIQ to • 47% Gross Margin in 2011
• Power quality issues related
monitor substations
to renewable power and • 100% ownership*
electric cars • Recruited Alain Steven to the
• Availability of communication board
and sensor technology for • Testing web-based platform
real-time condition for 24/7 access to sensors
monitoring
$1B+ TAM
• 1M large and medium transformers
• Less than 2% of transformers being monitored (1-2 000 per unit)
* 16% phantom option plan
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25. Transformer Asset Wall
Analysis of transformer failures by
Hartford Steam Boiler Inspection &
Insurance Co., 2012:
…Not yet seen an alarming increase
in end of life failures, such a rise
must be expected eventually…
…Most difficult task for the utility
engineer is predict future reliability
of transformer fleet, and replace
each one the day before it fails…
…Meeting growing demand of grid
and at same time maintain system
reliability with aging fleet will
require significant changes in the
way utility operates and cares for its
transformers…
Peak estimated:
next 5-10 years
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26. Remote monitoring solutions for back-power
as well as pipelines
Market Drivers Highlights Financial Snapshot
• Aging grid • Business model innovation • $3.0M Rev in 2011
• Need for uninterrupted • 4G radio implementation
power • 70% gross margin
• Recruited sales force
• Regulatory requirements • Converting consignment • 100% ownership*
• Availability of communication units to subscription
and sensor technology for
real-time condition
monitoring
$1B+ TAM
• Over 2M permanently-installed generators (50% residential, 50% C&I)
• Less than 2% of generators being monitored
• Less than 2% of households have generator
* Pre- management option pool
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27. The Digital Energy Company
● Why should you own ACFN today?
● Strong history of creating shareholder value
● Strong balance sheet and dividend
● Big vision of transforming the oil and gas industry and electric grid
● Cleaner
● Safer
● More reliable
● Cheaper
Confidential 27

28. Balance Sheet
As of
LIABILITIES AND EQUITY As of December 31,
ASSETS As of December 31, As of December 31, December 31,
2011 2010
2011 2010 Current liabilities:
Current assets: Short-term bank credit and current maturities of
677 1,308
Cash and cash equivalents 34,280 6,549 long-term bank debt
Short-term deposits 18,000 Accounts payable 2,052 2,578
Restricted deposit 2,223 1,317 Accrued payroll, payroll taxes and social benefits 1,907 1,531
Funds held in escrow 5,961 -
Other current liabilities 7,420 3,428
Accounts receivable 4,965 5,273
Current liabilities of discontinued operations - 4,372
Unbilled revenue 3,778 3,806
Total current liabilities 12,056 13,217
Inventory 2,144 1,114
Long-term liabilities:
Other current assets 922 333
Accrued severance 3,837 3,715
Discontinued operations - 9,424 Long-term debt 141 302
Total current assets 72,273 27,816 Other long-term liabilities 204 240
Property and equipment, net 635 490 Discontinued operations - 434
Severance assets 2,620 2,498 Total long-term liabilities 4,182 4,691
Restricted deposit 271 85 Equity:
Intangible assets, net 4,780 5,339 Common stock - $0.01 par value per share:
Goodwill 4,637 4,679
Authorized – 30,000,000 shares; Issued – 183 180
Deferred taxes 440 302 18,067,925 and 18,318,863 shares at December
31, 2010 and September 30, 2011
Other assets 149 378
Additional paid-in capital 84,614 83,596
Discontinued Operations - 18,198 Warrants 427 427
Accumulated deficit -13,022 -48,431
Total assets $85,805 $59,785
Treasury stock, at cost – 801,920 shares at
-3,036 -3,036
December 31, 2010 and September 30, 2011
Accumulated other comprehensive income 485 637
Total Acorn Energy shareholders’ equity 69,651 33,373
Non-controlling interests -84 8,504
Total equity 69,567 41,877
Total liabilities and equity $85,805 $59,785
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29. Income Statement
Year End December 31,
2011 2010
Revenues:
Projects 11,368 11,235
Smart grid distribution products and services 7,119 2,382
Other 441 441
Total revenues 18,928 14,244
Cost of sales:
Projects 7,886 6,646
Smart grid distribution products and services 3,792 1,210
Other 337 344
Total cost of sales 12,015 8,200
Gross profit 6,913 6,044
Operating expenses:
Research and development expenses, net of credits 2,995 965
Selling, general and administrative expenses 11,952 10,440
Total operating expenses 14,947 12,571
Operating loss -8,034 -6,527
Finance expense, net -26 -224
Gain on investment in GridSense - 1,327
Distribution from EnerTech - 135
Gain on sale of HangXing 492 -
Loss before taxes on income -7,568 -7,110
Income tax benefit (expense) 12,767 -671
Net income (loss) from continuing operations 5,199 -7,781
Loss from discontinued operations -1,948 -17,969
Gain on the sale of discontinued operations, net of income taxes 31,069 -
Non-controlling interest share of loss from discontinued operations 540 67
Net income (loss) attributable to Acorn Energy 34,860 -25,683
Net loss attributable to non-controlling interests 549 595
Net loss attributable to Acorn Energy Inc. 35,409 -25,088
Diluted loss per share attributable to Acorn Energy, Inc. shareholders:
From continuing operations 0.33 -0.48
From discontinued operations 1.70 -1.20
Net income (loss) per share attributable to Acorn Energy, Inc. shareholders 1.99 -1.68
Weighted average number of shares outstanding attributable to Acorn Energy Inc. – basic and diluted 17,743 14,910
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30. Statement of Cash Flows
Year Ended December 31,
2011 2010
Cash flows used in operating activities:
Net income (loss) before non-controlling interests 34,320 -25,750
Less net loss from discontinued operations -29,121 17,969
Net income (loss) from continuing operations 5,199 -7,781
Adjustments to reconcile net loss to net cash used in operating activities (see Schedule A) --13,038 -1,527
Net cash used in operating activities – continuing operations -7,839 -6,254
Cash flows provided by (used in) investing activities:
Investment in Enertech - -900
Restricted Deposits -1,930 -1,301
Release of restricted deposits 839 1,029
Loan to GridSense prior to acquisition - -200
Advances from CoaLogix prior to sale -278 -
Proceeds from the sale of CoaLogix net of CoaLogix cash 62,117 -
Escrow deposits from CoaLogix sale -6,308 -
Proceeds from the sale of HangXing 492 -
Amounts funded for severance assets -315 -281
Acquisitions of property and equipment -502 -237
Acquisition of USSI, net of cash acquired - 7
Acquisition of GridSense, net of cash acquired - (1,352)
Acquisition of OMI - -
Net cash provided by (used in) investing activities- continuing operations 36,562 -2,336
Cash flows provided by (used in) financing activities:
Proceeds from capital raises, net of transaction costs - 15,176
Issuance of shares to non-controlling interests in consolidated subsidiary - 3,010
Exercise of options and warrants 194
Short-term debt borrowings (repayments), net -557 962
Proceeds from borrowings of long-term debt 68 -
Repayments of long-term debt -342 127
Other 31 -140
Net cash provided by financing activities – continuing operations -1,203 19,419
Discontinued operations:
Operating cash flows -2,020 -8,536
Investing cash flows -187 -7,051
Finance Cash Flows 1,683 479
Net cash used in discontinued operations -524 -15,108
Effect of exchange rate changes on cash and cash equivalents -72 273
Effect of exchange rate changes on cash and cash equivalents of discontinued operations - 154
Net increase (decrease) in cash and cash equivalents 26,924 -3,852
Cash and cash equivalents at beginning of period 6,549 8,033
Cash and cash equivalents at held by continuing operations at end of year 34,280 6,549
Confidential 30