Onsite Energy Corp. (fka ONSE)

[kiddo]

Onsite Energy June 30, 2013

Letter to share holders:

Onsite has completed another year of profitability.
The last fiscal year marked a turning point for our business as we saw marked improvement in our industrial energy efficiency project business. This increase included almost all industrial sectors we serve, as customers have begun to invest in projects to improve the energy efficiency of their facilities. Industrial energy efficiency projects we developed through our utility 3rd party contract partners over the past five years are being approved and implemented, resulting in significant growth in industrial project revenues and corresponding gross margins.

Industrial energy efficiency project revenues in our fiscal year completed in June 2013 increased several fold over our previous fiscal year. During the last fiscal year we received contract extensions into 2015 coupled with significant increase in funding allocations under these contracts to assist large industrial utility customers in identifying and implementing energy efficiency projects.
Here are few important financial highlights that were achieved since our last report to shareholders:
Onsite has continued to grow it's positive shareholders' equity position
Onsite has continued to reduce legacy long term debt.
Onsite recently renewed it's existing credit facilities with a major commercial bank.

Richard T. Sperberg
President