Fiber Optic Tunnel Detection System

US Seismic Systems Inc. (USSI), a subsidiary of Acorn Energy, Inc. (NASDAQ: ACFN), recently announced that the company demonstrated its Ultra High Sensitivity (UHS) Tunnel Detection product at the Force Protection Equipment Demonstration (FPED VIII) sponsored by (US) Department of Defense's Physical Security Equipment Action Group held last week in Stafford, Virginia. Designated GroundAlert-UHS, the system is based upon USSI’s revolutionary all-optical geophone, which can detect underground activity at levels more than 100 times quieter than competing systems.

The need for a tunnel detection solution around the world is becoming increasingly urgent, with 129 tunnels detected under U.S. borders since 1990. The Department of Homeland Security, U.S. Northern Command, the Army Corps of Engineers and other agencies formed the rapid reaction tunnel detection joint capability technology demonstration in 2010 to address this pressing issue. The highly publicized escape of 480 Taliban fighters in April (2011) month through a tunnel from a prison in Afghanistan has now heightened awareness by the DOD for the need for a tunnel detection capability at secure sites around the world.

Fiber Optic Tunnel Detection System              USSI’s GroundAlert-UHS fiber optic tunnel detection system, which is powered only by light, utilizes highly sensitive, yet unobtrusive fiber optic geophones planted in the ground to detect subsurface digging activity at distances in excess of 100 feet, coupled with a real-time signal processing suite for screening out nuisance/false alarms. “GroundAlert-UHS is a solid example of the broader applications and markets available for our Ultra High Sensitivity (UHS) fiber optic oilfield seismic systems,” stated Jim Andersen, CEO of US Seismic Systems. “The requirements for tunnel detection closely align with those needed for detecting microseismic events in the oilfield, that being small, rugged, ultra-sensitive sensors that are simple to install requiring no insitu electronics and no maintenance.”

Security Project in Latin America              Late last year, USSI announced that its GroundAlert security system had been selected for a 20-site maximum-security project in Latin America. 

Force Protection Equipment Demonstration (FPED) serves leaders and other decision-makers in defense, homeland security, nuclear security, and first-response, as well as officials in state and local law enforcement, physical security and first-responder organizations, and defense and homeland security media. Military and civilian personnel in command, physical security and first response positions are encouraged to attend and see the latest in immediately available integrated force protection, anti-terrorist and first-response solutions presented in 20 equipment categories.

US Seismic Systems Inc. (“USSI”), formerly US Sensor Systems Inc., designs, integrates, manufactures, and sells fiber optic sensing systems and solutions for the Energy and Defense markets. USSI utilizes all-optical fiber sensing technology for

its state-of-the-art sensors. USSI’s proprietary optical fiber and electronics combine to form the sensor system. It is designed to replace the legacy electronic-based sensor systems at a lower cost and with improved performance and reliability. For more information visit the USSI website at: www.ussensorsystems.com

Acorn Energy, Inc. is a holding company focused on technology driven solutions for energy infrastructure asset management. Our four businesses in which we have controlling interests, improve the world's energy infrastructure by making it cleaner and less expensive to operate air pollution systems for coal and gas-fired power plants (CoaLogix), more secure by providing security solutions for underwater energy infrastructure (DSIT), more reliable by providing condition monitoring instruments for critical assets on the electric grid (GridSense) and more productive and efficient by increasing oil and gas production while lowering costs through use of ultra-high sensitive seismic tools for more precise pinpointing of oil and gas reservoirs (USSI). For more information visit www.acornenergy.com

This press release includes forward-looking statements, which are subject to risks and uncertainties. There is no assurance that US Sensor Systems Inc. or Acorn Energy, Inc. will continue to grow their respective businesses, execute the initiatives described above or meet the expectations described above. A complete discussion of the risks and uncertainties which may affect Acorn Energy’s business generally and the businesses of its subsidiaries is included in “Risk Factors” in the Company’s most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.