Mr. William Crossland reports

THERMAL ENERGY IMPROVES SITE EFFICIENCY FOR LEADING CHEMICALS CORPORATION

Thermal Energy International Inc. has been commissioned by a leading specialty chemical producer to design, manufacture and install a turnkey heat recovery project.

This $960,000 contract is set to be implemented as part of a company-wide resource productivity and sustainability initiative and follows the successful deployment of a GEM trap installation at the same location, which was designed to maximize steam system and energy efficiency by optimal steam trapping. The current project at this European production site will recover wasted energy from a boiler flue and existing gas turbine exhaust. The recovered heat will be used to preheat water for the steam boilers, improving process efficiency. The proposed heat recovery solution will deliver an estimated $465,000 of savings per year.

This represents Thermal Energy's first heat recovery project in the chemical sector as well as the first with this Fortune 500 client. The project features a Heat-Sponge indirect heat recovery unit from the company's recently acquired subsidiary Boilerroom Equipment Inc. (BEI) and a direct contact Flu-Ace system. This holistic approach, and the resulting product combination, offers optimal heat recovery with payback estimated to be less than 25 months. This is a more compelling economic case than either system could provide alone. The project is expected to be completed with revenue earned within nine months.

This is the latest in a number of transformational heat and water recovery projects announced by the company as it continues to grow its presence in the global sustainability market.

"The effective use of resources, whether these are water, fuel or materials, is a high priority for businesses and organizations across sectors and territories," said William Crossland, chief executive officer of Thermal Energy.

"We are increasingly working with customers to deliver custom engineered efficiency measures which improve sustainability. This project is one such example. As a continuation of our partnership with this leading speciality chemicals producer, it highlights our mutual commitment to site sustainability delivered through an array of complementary technology."

About Thermal Energy International Inc.

Thermal Energy is an established global supplier of proprietary and proven energy efficiency, emissions reduction and sustainability solutions to the industrial, commercial and institutional sectors. The company saves its customers money and improves their bottom line by reducing their fuel use and cutting their carbon emissions.

Thermal Energy is also a fully accredited professional engineering firm and, by providing a unique mix of proprietary products together with process, energy and environmental engineering expertise, Thermal Energy is able to deliver unique turnkey projects with significant financial and environmental benefits for its customers.