Document:

NOTICE
OF GUARANTEED DELIVERY

FOR

NON-TRANSFERABLE
SUBSCRIPTION RIGHTS CERTIFICATES ISSUED

BY
ACORN ENERGY, INC.

 

This
form, or one substantially equivalent hereto, must be used to exercise Rights pursuant to the rights offering (the “Rights
Offering”) described in the Prospectus, dated June [__], 2019 (the “Prospectus”) of Acorn Energy, Inc., a Delaware
Corporation (the “Company”), if a holder of Rights cannot deliver the certificate(s) evidencing the Rights (the “Subscription
Rights Certificates(s)”) to the Subscription Agent listed below (the “Subscription Agent”) at or prior to 5:00
p.m., Eastern time, on June 24, 2019, unless such time is extended by the Company as described in the Prospectus (as it may be
extended, the “Expiration Date”). Such form must be delivered by hand or sent by fax transmission, first class mail
or overnight courier to the Subscription Agent, and must be received by the Subscription Agent on or prior to the Expiration Date.
See “The Rights Offering—Method for Exercising Rights” in the Prospectus.

 

Payment
of the Subscription Price of $0.24 per share for each 0.312 of a share of the Company’s common stock subscribed for upon
exercise of such Rights must be received by the Subscription Agent in the manner specified in “The Offer—Form of Payment”
in the Prospectus at or prior to 5:00 p.m., Eastern time, on the Expiration Date even if the Subscription Rights Certificate(s)
evidencing such Rights is (are) being delivered pursuant to the Guaranteed Delivery Procedures thereof. See “The Offer—Method
for Exercising Rights” in the Prospectus.

 

The
Subscription Agent is: American Stock Transfer & Trust Company, LLC

 

	If
delivering by regular mail:	If
    delivering by hand, express mail, courier or other expedited service:
	 	 
	American
    Stock Transfer & Trust Company, LLC

    Operations Center

    P.O. Box 2042

    New York, NY 10272-3042	American
    Stock Transfer & Trust Company, LLC

    Operations Center

    6201 15th Avenue

    Brooklyn, NY 11219

 

Telephone
number for Confirmation (Toll Free): 877-283-0323

 

DELIVERY
OR TRANSMISSION OF THIS INSTRUMENT OTHER THAN AS SET FORTH ABOVE DOES NOT CONSTITUTE A VALID DELIVERY.

 

If
you have any questions or require additional copies of relevant documents please contact the Company’s Information Agent,
D.F. King & Co., Inc. (toll free): 866-388-7535.

 

    	 	1	 

     

    

 

Ladies
and Gentleman:

 

The
undersigned hereby represents that the undersigned is the holder of Subscription Rights Certificate(s) representing [●] Rights
and that such Subscription Rights Certificate(s) cannot be delivered to the Subscription Agent at or before 5:00 p.m., Eastern
time, on the Expiration Date. Upon terms and subject to the conditions set forth in the Prospectus, receipt of which is hereby
acknowledged, the undersigned hereby elects to exercise the Rights to subscribe for shares of common stock with respect to the
Rights represented by such Subscription Rights Certificates(s).

 

The
undersigned understands that payment of the Subscription Price of $0.24 for each 0.312 share of common stock subscribed for pursuant
to the Rights Offering must be received by the Subscription Agent at or before 5:00 p.m., Eastern time, on the Expiration Date
and represents that such payment, in the aggregate amount of $_________ either (check appropriate box):

 

	 	●	is
    being delivered to the Subscription Agent herewith or,
	 	●	has
    been delivered separately to the Subscription Agent in the manner set forth below (check appropriate box and complete information
    relating thereto):

	 	●	Uncertified
    check (Payment by uncertified check will not be deemed to have been received by the Subscription Agent until such check has
    cleared. Holders paying by such means are urged to make payment sufficiently in advance of the Expiration Date to ensure that
    such payment clears by such date.)
	 	●	Certified
    check
	 	●	Bank
    draft (cashier’s check)
	 	●	Money
    order

Name
of Maker: ___________________________

Date
of check, draft or money order: ___________

Check,
draft or money order number: ___________

Bank
or other institution on which

Check
is drawn or issuer of money order: ________

 

	Signature(s)
    	 	 	Address	 
	Name(s)	 	 	 	 
	 	(please
    type or print)	 	 	Area
    Code and Tel. No.(s)

 

Subscription
Rights Certificates (No(s). (if available) _______________________________________________________

 

    	 	2	 

     

    

 

GUARANTEE
OF DELIVERY

(Not
to Be Used For Subscription Rights Certificate Signature Guarantee)

 

The
undersigned, a member firm of a registered national securities exchange or of the National Association of Securities Dealers,
Inc., or a commercial bank or trust company having an office or correspondent in the United States, or a bank, stockbroker, savings
and loan association or credit union with membership in an approved signature guarantee medallion program, pursuant to Rule 17Ad-15
of the Securities Exchange act of 1934, as amended, guarantees that the undersigned will deliver to the Subscription Agent the
certificates representing the Rights being exercised hereby, with any required signature guarantee and any other required documents,
all within two (2) business days after the Expiration Date.

 

	 	 	Dated:
    	 
	 	 	 	 
	 	 	 
	(Address)	 	 	(Name
    of Firm)
	 	 	 	 
	 	 	 
	(Area
Code and Telephone Number)	 	 	(Authorized
    Signature)

 

The
institution that completes this form must communicate the guarantee to the Subscription Agent and must deliver the Subscription
Rights Certificate(s) to the Subscription Agent within the time period shown in the Prospectus, dated June [___], 2019 of Acorn
Energy, Inc. Failure to do so could result in a financial loss to such institution.

 

    	 	3INSTRUCTIONS
AS TO USE OF ACORN ENERGY, INC.

RIGHTS CERTIFICATES

 

The
following instructions relate to a rights offering (the “Rights Offering”) by Acorn Energy, Inc., a Delaware
corporation (the “Company”), to the holders of record of shares of its common stock, par value $0.01 per share
(“Common Stock”) and to holders of certain outstanding warrants to purchase shares of Common Stock (“Warrants”),
as described in the Company’s Prospectus dated June [__], 2019 (the “Prospectus”). Holders of record
of shares of Common Stock as of 5:00 p.m., New York City time, on June 3, 2019 (the “Record Date”) are receiving,
at no charge, non-transferable subscription rights (the “Rights”) to subscribe for and purchase up to 9,975,553
shares of the Company’s Common Stock at a subscription price of $0.24 per share (the “Subscription Price”).
American Stock Transfer and Trust Company, LLC is acting as subscription agent for the Rights Offering (the “Subscription
Agent”).

 

Each
holder will receive one Right for each share of Common Stock owned of record as of 5:00 p.m., New York City time, on the Record
Date. The Rights will expire, if not exercised prior to 5:00 p.m., New York City time, on June 24, 2019 (the “Expiration
Date”), unless the Company extends such Expiration Date. Each Right entitles the holder thereof, at the election of
such holder, to subscribe for 0.312 shares of Common Stock at the Subscription Price.

 

The
Company will not issue fractional shares in the Rights Offering. Fractional shares resulting from the exercise of the Subscription
Right will be rounded to the nearest whole number, with such adjustments as may be necessary to ensure that we offer no more than
9,975,553 shares of Common Stock in the Rights Offering.

 

The
Rights will be evidenced by non-transferable Rights certificates (“Rights Certificates”). The number of Rights
to which you are entitled is printed on the face of your Rights Certificate. You should indicate your wishes with regard to the
exercise of your Rights by completing the appropriate section on the back of your Rights Certificate and returning the Rights
Certificate with your payment to the Subscription Agent in the envelope provided, or, if you are a beneficial owner of Common
Stock, by instructing your broker, custodian bank or other nominee to do so on your behalf. See “Method of Subscription
– Exercise of Rights.”

 

YOUR
RIGHTS CERTIFICATE MUST BE RECEIVED BY THE SUBSCRIPTION AGENT PRIOR TO 5:00 P.M., NEW YORK CITY TIME, ON THE EXPIRATION DATE.
PAYMENT OF THE SUBSCRIPTION PRICE FOR ALL RIGHTS EXERCISED, INCLUDING FINAL CLEARANCE OF ANY CHECKS, MUST BE RECEIVED BY THE SUBSCRIPTION
AGENT PRIOR TO 5:00 P.M., NEW YORK CITY TIME, ON THE EXPIRATION DATE. RIGHTS NOT VALIDLY EXERCISED PRIOR TO 5:00 P.M., NEW YORK
CITY TIME, ON THE EXPIRATION DATE WILL EXPIRE. IN CASE YOU HOLD RIGHTS THROUGH A BROKER, CUSTODIAN BANK OR OTHER NOMINEE, YOU
SHOULD VERIFY THE DEADLINE FOR DELIVERING YOUR INSTRUCTION WITH YOUR BROKER, CUSTODIAN BANK OR OTHER NOMINEE.

 

    	 	 	 

     

    

 

1.
Method of Subscription — Exercise of Rights

 

Your
Rights are evidenced by a non-transferable Rights Certificate, which will either be a physical certificate issued through the
facilities of the Subscription Agent. The Rights Certificates will be delivered to record holders or, if a shareholder’s
Common Stock is registered in the name of a broker, custodian bank or other nominee, on his, her or its behalf, to such broker,
custodian bank or other nominee.

 

The
Rights may be exercised by registered holders of Common Stock or Warrants by completing and signing the Rights Certificate and
delivering the completed and duly executed Rights Certificate, together with the full subscription payment, to the Subscription
Agent at the address set forth below. Completed Rights Certificates and related payments, including final clearance of any uncertified
checks, must be received by the Subscription Agent prior to 5:00 p.m., New York City time, on the Expiration Date.

 

If
you are a beneficial owner of shares of Common Stock that are registered in the name of a broker, custodian bank or other nominee
and you wish to exercise your Rights, you should instruct your broker, custodian bank or other nominee to exercise your Rights
on your behalf by delivering all documents and payment on your behalf prior to 5:00 p.m., New York City time, on the Expiration
Date. This means that you should give such instructions to your broker, custodian bank or other nominee sufficiently in advance
of the Expiration Date to enable your broker, custodian bank or other nominee to exercise your Rights on your behalf before the
Expiration Date. The Company will ask your record holder to notify you of the Rights Offering. You should complete and return
to your record holder the appropriate subscription documentation you receive from your record holder. Your Rights will not be
considered exercised unless the Subscription Agent receives from your broker, custodian bank or other nominee all of the required
documents and your full subscription payment prior to 5:00 p.m., New York City time, on the Expiration Date. Brokers, custodian
banks or other nominee holders of Rights will be required to certify to the Subscription Agent, before any Right may be exercised
with respect to any particular beneficial owner, as to the aggregate number of shares of Common Stock subscribed for pursuant
to the Right by such beneficial owner.

 

Nominees,
such as brokers, dealers, custodian banks or other nominees, who hold shares of Common Stock for the account of others, should
notify the respective beneficial owners as soon as possible to ascertain the beneficial owners’ intentions and to obtain
instructions with respect to the Rights. If the beneficial owner so instructs, the nominee should exercise the Rights on behalf
of the beneficial owner and deliver all documents and payment prior to 5:00 p.m., New York City time, on the Expiration Date.
Whether you are a record holder or hold through a broker, custodian bank or other nominee, the Company will not be obligated to
honor your exercise of Rights if the Subscription Agent receives the documents relating to your exercise from you or from your
nominee, as applicable, after the expiration of the Rights Offering, regardless of when you transmitted the documents.

 

The
Company and the Subscription Agent will accept only properly completed and duly executed Rights Certificates actually received
at the applicable address listed below, prior to 5:00 p.m., New York City time, on the Expiration Date.

 

    	 	2	 

     

    

 

The
Rights Certificate and payment of the Subscription Price must be delivered to the Subscription Agent by one or more of the following
methods:

 

	If
    delivering by regular mail:	If
    delivering by hand, express mail, courier or other expedited service:
	 	 
	American
    Stock Transfer & Trust Company, LLC

    Operations Center

    P.O. Box 2042

    New York, NY 10272-3042	American
    Stock Transfer & Trust Company, LLC

    Operations Center

    6201 15th Avenue

    Brooklyn, NY 11219

 

DELIVERY
TO AN ADDRESS OTHER THAN THAT PROVIDED ABOVE DOES NOT CONSTITUTE VALID DELIVERY AND, ACCORDINGLY, MAY BE REJECTED BY THE COMPANY.
PLEASE DO NOT SEND RIGHTS CERTIFICATES OR PAYMENTS TO THE COMPANY.

 

If
you do not indicate the number of Rights being exercised, or do not forward full payment of the Subscription Price, then you will
be deemed to have exercised your Rights with respect to the maximum number of whole Rights that may be exercised with the aggregate
Subscription Price you delivered to the Subscription Agent.

 

2.
Payment Method

 

Your
payment of the Subscription Price must be made in U.S. dollars for the full number of shares of Common Stock you wish to acquire
under the Rights by one of the following methods:

 

	 	●	Check
    or bank draft drawn on a U.S. bank payable to “American Stock Transfer & Trust Company, LLC, as Subscription Agent”;
    or	 
	 	 	 	 
	 	●	Wire
    transfer of immediately available funds directly to the account maintained by American Stock Transfer & Trust Company,
    LLC, as Subscription Agent. If you desire to make payment by wire transfer, please see the wire instructions on the reverse
    side of the Rights Certificate and on page [—] of the Prospectus.	 

 

All
payments will be deemed to have been received by the Subscription Agent immediately upon receipt, provided that payment by uncertified
check shall not be deemed to have been received until final clearance of such check. Payment received after the expiration of
the Rights Offering, or any uncertified check which has not cleared by the expiration of the Rights Offering, will not be honored,
and the Subscription Agent will return your payment to you, without interest or penalty, as soon as practicable.

 

3.
Issuance of Common Stock

 

Stockholders
whose shares are held of record by Cede or by any other depository or nominee on their behalf or their broker-dealers’ behalf
will have any shares that they acquire credited to the account of Cede or the other depository or nominee. With respect to all
other stockholders, shares will be issued in book-entry form The Company will not issue any stock certificates. Holders of record
of Common Stock will receive a statement of ownership from the Company’s transfer agent, American Stock Transfer & Trust
Company, LLC, reflecting the shares of Common Stock that have purchased in the Rights Offering, shortly after the expiration of
the Rights Offering.

 

    	 	3	 

     

    

 

4.
Sale or Transfer of Rights

 

The
Rights granted to you are non-transferable and, therefore, you may not sell, transfer or assign your Rights to anyone.

 

5.
Execution

 

	 	a.	Execution
    by Registered Holder. The signature on the Rights Certificate must correspond with the name of the registered holder exactly
    as it appears on the face of the Rights Certificate without any alteration or change whatsoever. Persons who sign the Rights
    Certificate in a representative or other fiduciary capacity must indicate their capacity when signing on behalf of the registered
    holder and, unless waived by the Subscription Agent in its sole and absolute discretion, must present to the Subscription
    Agent satisfactory evidence of their authority to so act.
	 	 	 
	 	b.	Execution
    by Person Other than Registered Holder. If the Rights Certificate is executed by a person other than the holder named
    on the face of the Rights Certificate, proper evidence of authority of the person executing the Rights Certificate must accompany
    the same unless, for good cause, the Subscription Agent dispenses with proof of authority.
	 	 	 
	 	c.	Signature
    Guarantees. Your signature must be guaranteed by an Eligible Institution if you specify special delivery instructions.

 

6.
Method of Delivery

 

The
method of delivery of Rights Certificates and payment of the subscription payments to the Subscription Agent will be at the election
and risk of the participating Rights holder, but if sent by mail it is recommended that such certificates and payments be sent
by overnight courier or by registered mail, properly insured, with return receipt requested, and that a sufficient number of days
be allowed to ensure delivery to the Subscription Agent and clearance of payment prior to 5:00 p.m., New York City time, on the
Expiration Date. If you are a beneficial owner, you must act promptly to ensure that your broker, custodian bank or other nominee
acts for you and that all required certificates and payments are actually received by the Subscription Agent prior to the expiration
of the Rights Offering. The Company is not responsible if your broker, custodian bank or other nominee fails to ensure that all
required certificates and payments are actually received by the Subscription Agent prior to the expiration of the Rights Offering.

 

7.
No Revocation

 

All
exercises of Rights are irrevocable.

 

8.
Special Provisions Relating to the Delivery of Rights Through DTC

 

In
the case of Rights that are held of record through the Depository Trust Company (“DTC”), exercises of Rights
may be effected by instructing DTC to transfer Rights from the DTC account of such holder to the DTC account of the Subscription
Agent, together with certification as to the aggregate number of Rights subscribed for pursuant to the Rights by each beneficial
owner of Rights on whose behalf such nominee is acting, and payment of the Subscription Price for each share of Common Stock subscribed
for pursuant to the Rights.

 

    	 	4

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