Greetings!

As EnerNOC begins 2004 with wind in our sails, we want to pause for a moment to send you our best wishes for a happy, healthy, and productive year. We also want to thank you for all of the help that you provided to EnerNOC during 2003.

Here's a look at what we've been up to since we distributed our third quarter update in early October.

EnerNOC's Reach Widens

We completed our first installation in Massachusetts. EnerNOC is now active in the following areas where the power grid is highly problematic and our demand response services are most valuable: Northwest Vermont, Northeast Massachusetts, Southwest Connecticut, and New York City.

EnerNOC Introduces Client Energy Reporting

We enhanced the energy management and customer data administration software for our Network Operations Center (NOC), and introduced a customer-accessible information portal which enables customized reporting via the Internet.

In the fourth quarter, we also delivered our first set of Monthly Energy Reports, an important step in our commitment to provide our customers with industry- leading visibility into their power consumption and onsite generator performance.

New Customer Spotlight: The Jewish Home for the Elderly

The Jewish Home for the Elderly is a nonprofit geriatric facility serving the elderly of Fairfield County. The Home cares for 360 residents in a 211,000 square foot complex in Fairfield, Connecticut. The complex has a brand new 800 kilowatt emergency generator capable of reducing roughly 500 kilowatts of demand from the power grid.

This nonprofit organization joins a growing number of EnerNOC clients in Southwest Connecticut who have turned to EnerNOC to help them manage their energy while supporting their region's troubled power grid.

Staffing Updates

We added two new Sales Account Executives with over 20 years of experience selling technology and environmental services to the same vertical markets that EnerNOC targets. These individuals make great additions to our sales force and will help us meet our aggressive 2004 sales goals.

We doubled our office space in Boston's Faneuil Hall to accommodate additions to our team and handle continued growth in 2004. EnerNOC is currently searching for an additional Java Developer, SQA Engineer, Sales Account Executive, Director of Sales, and Installation and Deployment Project Manager. If you know a talented person who could add value in one of these roles, please ask him/her to send a cover letter and resume to us at Jobs@EnerNOC.com.

The Accolades Continue to Pile Up

In November, EnerNOC was recognized by the Boston Business Journal as one of the "Area's Top-Funded Early-Stage Startups." This recognition, which has clearly increased interest and awareness about EnerNOC in Boston, was a nice follow up to another distinction we received in late 2003: we were selected as one of the East Coast's most promising venture-backed companies by Ernst & Young and VentureOne.