ISG CAPITAL PROTOTYPE BUILDING REDUCES ENERGY COSTS BY 50%

Greening methodology benefits both industrial landlords and tenants

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TORONTO, Dec. 16 /CNW/ - ISG Capital Corporation (TSX-V: SUS) ("ISG" or the "Corporation") announced today that implementation of its greening methodology at the Corporation's 200,000 square-foot distribution facility in Ingersoll, Ontario has provided notable results by providing better heat distribution, a more stable ambient temperature and better overall illumination - all while cutting overall utility costs by greater than 50%.   

"We have created an opportunity for landlords and tenants to work together to reduce gross occupancy costs, share savings and enhance the environmental performance of their properties," said David Ogden, ISG's President and CEO.  "Our strategy is focused on acquiring buildings where we can add significant value by lowering operating costs, enhancing net rents and delivering a more productive working environment for tenants."

ISG is positioning itself to be Canada's premiere investment vehicle to capitalize on the growing demand for energy-efficient properties and is currently working to demonstrate the efficiency of its methodology on a number of industrial properties owned by third parties.

Hard Savings

For the period commencing April 1, 2010 and ending November 30, 2010, the proprietary temperature management system employed by ISG cut natural gas consumption at the Ingersoll facility by an average of 60%.  Similarly, new energy efficient light fixtures equipped with motion sensors cut electricity consumption by greater than 50%. In both cases, the reductions were normalized against the same period in the prior year and adjusted for changes in use, activity and climate by Abraxas Energy Consultants in order to provide an accurate account of the savings that are being achieved.  Taken together, these initiatives reduced CO2 emissions in the period by 56%. 

"We are delighted by the initial results and the enhanced productivity in our warehouse," said Rob Keller, President of Hercules Tire, the building's tenant. "ISG provided an opportunity for us to reduce our energy costs, improve conditions for our workers and reduce the carbon footprint of our warehousing operations." 

In addition to improving the work environment, these efforts are helping the broader environment by targeting to increase the facility's Energy Star rating from 73 to 90 within 12 months of implementation. The Energy Star rating system identifies buildings that are able to meet the increasingly stringent energy and environmental performance that tenants are demanding.  It also provides objective verification of a given facility's energy efficiency standing. 

Key Alliances

To implement the retrofits and technologies associated with its greening methodology, ISG has partnered with a number of recognized experts in the lighting, HVAC and electrical contracting sectors.   ISG's partners in this initiative include:

• The State Group Inc. one of North America's leading multi-trade contractors, which will serve as project manager and provide trade personnel in each key area as required;
• Westburne Ruddy Electric, which will supply lighting hardware and related design and advisory services; 
• Halsall Associates Limited, which will provide energy audits; and  
• Abraxas Energy Consulting, which will provide monthly reporting, monitoring and normalization services to ensure that all energy reduction initiatives are performing within expected parameters.

About ISG

ISG is a publically-traded commercial real-estate company focused on enhancing the environmental and financial performance of industrial buildings. The company is committed to creating shareholder value by incorporating environmentally and socially responsible approaches in its growth strategy. 

The TSXV has neither approved nor disapproved the contents of this press release
and does not accept responsibility for its adequacy or accuracy.

For further information:

David Ogden President and Chief Executive Officer
[phone] or [phone]
www.isgcapital.ca