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Exemplary Performers: ENERGY STAR Partner News

Published 12-05-03

Submitted by US EPA

WASHINGTON, DC - The U.S. EPA's voluntary ENERGY STAR program (www.energystar.gov) works with businesses and individuals to protect the environment through superior energy efficiency. ENERGY STAR Partners are leaders in the effort to reduce the threat of global climate change while simultaneously improving their financial performance.

Partner Profiles

1. Food Lion (NYSE: DEG)

Food Lion LLC, a subsidiary of Brussels-based Delhaize Group, operates 1,200 supermarkets in 11 Southeastern and Mid-Atlantic states. The company won the ENERGY STAR(r) Partner of the Year Award for both 2002 and 2003 by demonstrating the value of superior energy performance to its bottom line. By fully integrating energy management throughout its business practices, Food Lion tripled its annual energy savings in just one year. In 2002, Food Lion achieved energy savings of five percent and annualized cost savings of nearly $15 million, despite increasing its net square footage by two percent. In addition to various technology and system upgrades, Food Lion has implemented several highly successful initiatives, including a company-wide energy awareness program. Food Lion currently has more than 100 ENERGY STAR stores, some of the most energy efficient retail facilities in the United States. Food Lion's 2002 energy cost reductions are equivalent to eliminating the energy use of 55 stores. Food Lion's 2002 energy savings prevented the equivalent pollution of removing 27,000 cars from the road or planting 37,000 acres of trees. Food Lion's corporate energy mission is to be a world-class leader in energy management in the supermarket industry.

2. Starbucks Coffee Company (Nasdaq: SBUX)

Starbucks Coffee Company joined ENERGY STAR in October 2000 and operates more than 7000 retail locations worldwide. Starbucks is recognized as one of Fortune's 100 Most Admired Companies at number nine and ranks twenty-first on Business Ethics Magazine's 100 Best Corporate Citizens. As a company that strives to be a leader in corporate social responsibility, Starbucks knows that the quality of our environment can be protected through energy efficient operations. Starbucks drive to conserve energy and promote environmental stewardship directly relates to its six guiding principles; one of which states "Contribute positively to our communities and our environment." In May 2003, The Business and Industry Resource Venture presented Starbucks with the BEST Award (Businesses for an Environmentally Sustainable Tomorrow). This award honors organizations that operate more efficiently through conservation and/or pollution prevention practices. In Fiscal Year 2002, Starbucks undertook a number of energy conservation projects in its North American stores. This included replacing inefficient lighting with more efficient bulbs and fixtures in over 2,700 existing stores, resetting thermostats to increase heating and cooling efficiency, and educating partners (employees) through a best practice Energy Checklist. The projects are estimated to have saved 27.7 million kWh in Fiscal Year 2002 which is equivalent to taking 3,717 cars off the road or planting 5,807 acres of trees. The results of these projects continue to impact operations as all new construction incorporates energy efficient lighting specifications. Starbucks recognizes the importance of conservation and is committed to furthering conservation efforts in partnership with ENERGY STAR as its business continues to grow.

3. Servidyne Systems, LLC (Nasdaq: ABRI)and Douglas, Emmett & Co.

Servidyne Systems, LLC, a wholly-owned subsidiary of Abrams Industries, Inc. (Nasdaq: ABRI), and an ENERGY STAR Service and Product Provider Partner of the Year Award Winner (2001, 2002, and 2003), provides energy management services to a number of ENERGY STAR Partners. Among them is Douglas, Emmett & Co., one of the largest commercial and residential property owners in Los Angeles County. Douglas, Emmett recently announced that their corporate energy program yielded a 15% reduction in energy consumption for their entire portfolio of 32 facilities over a two year period with a total energy cost savings of $5,525,109. Servidyne credits Douglas Emmett's corporate management and building personnel for taking a holistic approach that included 1) portfolio-wide benchmarking; 2) a tenant energy awareness campaign; and 3) targeted investments in technology upgrades, including lighting, HVAC systems and controls. Servidyne notes that while each initiative individually can reap rewards, the commitment to a total energy management approach across all facilities is what sets Douglas Emmett apart from other organizations.

4. Hines

Hines, one of the largest privately held real estate development, investment, and management companies in the world, has won the ENERGY STAR Partner of the Year Award three years in a row (2003, 2002, and 2001). Hines has benchmarked its entire eligible real estate portfolio of more than 62 million square feet using EPA's national energy performance rating system. Hines holds the largest square footage of ENERGY STAR-qualified properties in the nation. Hines has achieved an average portfolio-wide energy performance rating of 70 on a 100 point scale. Hines proactively communicates to tenants and joint venture partners that cost effective and efficient use of energy is not only good for the environment but also good for the bottom line. The California Public Employees Retirement System (CalPERS), the nation's largest public pension fund, has chosen Hines to manage a portion of its real estate assets in part because of Hines' track record of exemplary energy performance.

5. Transwestern Commercial Services

Transwestern Commercial Services (TCS), a national commercial real estate firm overseeing nearly 450 properties and 82 million square feet of office, industrial, and retail space, joined ENERGY STAR in May 2000.

According to Senior Vice President Dave Rock, "[ENERGY STAR]has added an additional layer of organization, enhanced marketing capabilities, and has provided several 'Value Added' opportunities - all of which are necessary in today's competitive environment." TCS has a corporate "Energy Team" that includes the majority of its senior management. In 2002, TCS saved over $7.5 million in energy costs and reduced energy consumption by almost 84 million kWh - the equivalent of planting over 17,000 acres of trees. TCS shares information and materials on reducing energy use and saving money with ENERGY STAR labeled products with its 312,000 tenants and visitors. Chief Investment Officer Kirk White: "Transwestern has taken a proactive approach to power consumption through the purchase of ENERGY STAR products such as servers and desktops. The energy efficiency standards of these products not only enable us to focus on energy conservation, they aid us by promoting longevity within our equipment."

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