Extended Stay America to Deploy Stem Systems Hotel chain partners with Stem to manage energy costs Across 68 California Locations

Millbrae, Calif. – September 30, 2014 – Stem, Inc., a leader in advanced energy

technology, today announced it has finalized an agreement to install and manage

energy intelligence systems for Extended Stay America, Inc., the largest company-
owned and operated hotel chain in the U.S. After the successful performance of

a pilot project, Extended Stay America will deploy Stem advanced energy storage

systems and real-time energy intelligence software across 68 of its California

locations.

By drawing on previously stored power during peak times of the day, Stem reduces

Extended Stay America's energy costs without any impact to the hotels' daily

operations. The fully automated advanced storage systems enable Extended Stay

America to apply a hands-off approach to reducing energy bills.

"The Stem system is invisible to our guests and our staff - it's simply a great way

to save on energy costs. In addition, the software provides us with a clear view

of electricity usage and activity at our California sites," said Larry Fichuk, Director

of Energy and Sustainability at Extended Stay America. "We look forward to the

benefits and impact we can have on the environment from working with Stem."

The Extended Stay America locations will adopt Stem's PowerStore unit, which is

optimized to fit seamlessly within existing building facilities. The pilot installation,

located in San Jose, Calif., was initiated in late 2013, and the remaining systems

are expected to come online by early 2015.

"Extended Stay America has demonstrated its deep commitment to advancing the

sustainability of its operations," said Stem CEO John Carrington. "With the support

of our energy intelligence solution, Extended Stay America strengthens this legacy

while also benefiting from immediate and long-term energy savings. At the same

time, this is an important milestone for Stem as we deploy our systems widely

across California."

About Stem

Stem, a leading provider of energy optimization services, combines big data,

predictive analytics and energy storage to reduce electricity costs for businesses.

The company's solution requires no compromises on building occupant comfort

and offers unparalleled energy insights, allowing a comprehensive view into past,

present and future energy use. As demands on the grid continue to increase,

Stem's system enables good energy citizenship and unlocks the potential for

expanded renewable energy integration. Headquartered in Millbrae, California,

Stem is funded by a consortium of leading investors including Angeleno Group,

Iberdrola (Inversiones Financieras Perseo) and GE Ventures.

About Extended Stay America

Extended Stay America, Inc., the largest owner/operator of company-branded

hotels in North America, owns and operates 682 hotels in the U.S. and Canada

comprising approximately 76,000 rooms and employs approximately 10,000

employees in its hotel properties and headquarters. The Company owns

and operates hotels under the core brand Extended Stay America®, which

serves the midpriced extended stay segment, and other brands. Visit

www.extendedstay.com for more information about the Company and its services.

Media Contact

Zoe Fishman

Antenna for Stem

stem@antennagroup.com

415-977-1929