Blue Earth (OTCBB:BBLU): Completes Merger with Castrovilla

Blue Earth, Inc. (OTCBB:BBLU) is pleased to announce that it has successfully closed its previously announced Letter of Intent (LOI) to acquire its first company, Castrovilla, Inc. Blue Earth's acquisition of Castrovilla is effective as of January 1, 2011 for $2.15 million payable in 1,279,762 restricted shares of Blue Earth common stock valued at $1.68 per share and $200,000 for debt retirement. Founded in 2004 and based in Mountain View, California, Castrovilla had approximately $3.5 million in revenues in 2010, more than double its 2008 revenues. Revenues are forecasted to exceed $5 million in 2011 with EBITDA forecasts of over $700,000, which was the basis for the negotiation of the purchase price.

"We are pleased to join the Blue Earth family and are excited about the opportunities our partnering will bring," said Castrovilla's President John Pink. "We have grown our business steadily since its inception and have developed strong relationships with several Northern California utilities as well as with several thousand small business customers. Joining Blue Earth enables us to more rapidly expand our energy efficient retrofit services and will give our existing customers the opportunity to utilize the products and services from any future Blue Earth company."

Castrovilla has served over 6,000 small businesses and several utilities in Northern California with its 25 employees. Castrovilla participates in numerous utility ratepayer-funded energy efficiency rebate programs, one of which Castrovilla successfully developed for the utilities called "Keep Your Cool". For the small businesses, it performs energy audits and comprehensive commercial refrigeration efficiency upgrades in restaurants, supermarkets, refrigerated warehouses and other businesses, saving its customers tens of millions in utility expenses.

"The acquisition of Castrovilla establishes our market presence in the energy efficiency services sector and brings a rapidly growing company to the Blue Earth family," said CEO Dr. Johnny R. Thomas. "It provides Blue Earth with seasoned business developers, important relationships with utilities and a large customer base that includes regional and national companies." The Blue Earth strategy is to sell lighting and Heating, Ventilation and Air-Conditioning (HVAC) bundled retrofits to the Castrovilla customer base, as well as to any additional acquisitions specializing in these areas that become Blue Earth family members.

"Management's primary acquisition efforts are currently focused on completion of due diligence of one potential acquisition candidate which has an innovative software platform. The importance, size and complexity of this opportunity justifies a more deliberate pace on other potential acquisitions while the Company completes its evaluation of this exciting opportunity," said Dr. Thomas.

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