Stem, Inc. - Market Leader in AI-Driven Clean Energy Storage Systems - to Combine with Star Peak, Creating First Public Pure Play Smart Energy Storage Company

Stem, Inc., ("Stem" or "the Company"), a global leader in artificial intelligence (AI)-driven clean energy storage systems, and Star Peak Energy Transition Corp. ("Star Peak") (NYSE: STPK), a publicly-traded special purpose acquisition company, announced a definitive agreement for a business combination that will result in Stem becoming a public company. Upon closing of the transaction, the combined company will be named Stem and remain listed on the New York Stock Exchange under the new ticker symbol "STEM." The combined company will be led by John Carrington, Chief Executive Officer of Stem.

Founded in 2009, Stem is an industry leading provider of AI-driven energy storage systems and market leader in the clean energy ecosystem. The Company generates revenue by providing customers with integrated energy storage systems, long-term recurring software services and energy market participation through its proprietary software platform, called Athenaâ„¢, which enables AI-automated system operations. The Company empowers its customers and partners to optimize energy usage by automatically switching between battery power, onsite generation and grid power. Its storage solutions address a $1.2 trillion opportunity for leading fortune 500 companies, commercial and industrial customers, independent power producers and renewable asset owners, among others.

Stem's smart energy storage technology solves many of the challenges facing today's dynamic power market and is well positioned to manage the increasing decentralization and democratization of the electric grid, significantly accelerating renewable growth and virtual power plants. Stem's network of energy storage systems supports utilities in reducing the dependency on conventional power sources. The network helps alleviate grid intermittency issues and promotes the adoption of renewable energy generation as a replacement for fossil fuels while supporting customers in meeting their ESG goals.

Management Commentary:

John Carrington, Chief Executive Officer of Stem, commented, "This transaction is transformative for us and we expect it to significantly accelerate our growth. Stem is a market leader and our Athenaâ„¢ software platform is proven in the U.S., Japan and Canadian markets, and this merger will enable expansion to several additional global markets. Our systems deliver value to our customers by lowering energy costs, enhancing renewable returns, and meeting ESG and sustainability goals, while increasing grid reliability. We are excited to partner with the Star Peak team and share a collective vision. The balance sheet strength of the combined company will empower Stem to expand its technological leadership and geographic reach. We look forward to creating long-term value for our customers, employees and shareholders as a public company."

Mike Morgan, Chairman of Star Peak who will join Stem's Board of Directors, said, "Stem is a leader in one of the fastest growing markets in clean energy and the first pure play smart energy storage company to go public. Stem and its highly experienced management team perfectly align with Star Peak's mission to provide growth capital to a market-leading business focused on climate change initiatives, emissions reductions and energy efficiency. In support of global decarbonization objectives, the entire power grid is being decentralized and democratized. We believe Stem is at the epicenter of this clean energy transition and its AI-driven software systems will be critical in accelerating renewables adoption and addressing climate change."

Eric Scheyer, Chief Executive Officer of Star Peak, commented, "Stem is an exceptional investment opportunity. We completed an extensive due diligence process and view Stem as a market leader in one of the most exciting segments of the clean energy ecosystem. The Star Peak team has significant experience investing in the broader energy infrastructure, renewables and technology sectors, and we believe Stem represents a highly compelling opportunity to capitalize on the scarcity of high-quality, public clean energy companies with attractive ESG characteristics, significant scale and visible growth."

Stem Investment Highlights:

• Large addressable market and strong macroeconomic tailwinds - the global energy storage market is expected to increase approximately 25-fold by 2030, driven by the convergence of two technologies (i) low-cost renewable generation and (ii) rapid reduction in battery costs and improving efficiency. The energy storage market is expected to grow materially faster than solar and wind generation.
• Market and technology leader:
  • More than 600 MWh of storage capacity commissioned since 2014.
  • Over 900 systems operating or contracted with Stem's proprietary Athenaâ„¢ software platform, in more than 200 cities and representing approximately 1 GWh of storage capacity.
  • 75% market share in the California commercial and industrial storage market, the largest energy storage market in the U.S.
  • First mover AI software platform has operated globally with over 40 utilities and 16 million runtime hours across its customer base.
• Balance sheet supports significant market expansion - strong balance sheet with approximately $525 million of cash to fully finance all U.S. and international forecasted growth.
• Highly visible growth - strong backlog and long-dated recurring software revenue streams enhance near-term revenue visibility.
• Capital light business model - AthenaTM AI-driven software leads to strong operating leverage with low expected capital intensity.
• Pure play clean energy company with attractive ESG characteristics - Stem facilitates rapid adoption of renewables and supports customer sustainability goals.

Stem | www.stem.com

Star Peak | www.starpeakcorp.com