Mr. Mike Kordysz reports

SMARTCOOL'S ECO3 SOLUTION INSTALLED AT LARGEST SGN UK SITE

Smartcool Systems Inc.'s agency partner, CoolSave Ltd., has successfully installed a number of Smartcool ECO3 solutions as part of an initial installation for SGN, which is expected to develop across multiple sites.

SGN is one of the largest suppliers of natural gas in the United Kingdom. SGN also offers a full M&E (monitoring and evaluation) and renewable solutions service to its customer base. SGN is committed to helping its customers reduce energy by demonstrating through innovation, behavioral change and renewable energy uptake. SGN currently has a customer base of 5.9 million domestic homes and businesses, along with a significant amount in the commercial and industrial sector. These improvements in energy efficiency will further help to ensure SGN continues to be one of the most trusted and valued energy suppliers in the United Kingdom.

SGN has implemented and installed Smartcool Systems' technology as part of its pledge to drive down energy consumption and achieve significant energy reduction. All data to support energy savings will be calculated from an independent energy metering system installed at the site, which demonstrates the technology's capability.

Nick Weedon, national sales manager of CoolSave, commented: "CoolSave have embraced the SGN core values with the use of Smartcool technology, which are to provide the energy people need in a reliable and sustainable way. We are working in partnership with SGN to drive down energy costs within their own operations. Further sites are likely to be evaluated for installation upon successful results at this initial site. It is hoped that after a continued install program on its own facilities, SGN will make the Smartcool solution available to its customers in its continued commitment to help drive down energy consumption in U.K."

About Smartcool Systems Inc.

Smartcool Systems provides cutting-edge energy-efficient and energy-cost-reduction solutions for businesses around the world. The ECO3, ESM and ECOHome are Smartcool Systems' unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by up to 40 per cent.

About SGN

SGN manages the network that distributes natural and green gas to 5.9 million homes and businesses across Scotland and the south of England. Whoever your supplier is, SGN's pipes deliver gas safely, reliably and efficiently to every customer.

SGN ensures it employs the highest safety standards, strives for the best levels of service and puts customers at the centre of everything it does. SGN also knows it is expected to do its work in a way that causes minimum impact on the environment.

We seek Safe Harbor.