Mr. William Crossland reports

THERMAL ENERGY SECURES FURTHER HEAT RECOVERY PROJECT FROM LEADING ANIMAL NUTRITION COMPANY

Thermal Energy International Inc. has been commissioned by a leading multinational animal nutrition and agricultural products company to improve energy efficiency at one of its European facilities.

The project, with a value of approximately $2.3-million, will see Thermal Energy install two of its proprietary FLU-ACE heat recovery systems to delivery greater fuel efficiency. The first system will recover heat from the site's process dryers, with the other recapturing heat from the site's boiler plant. The recovered heat will be used to displace steam and natural gas currently heating water and air used within the production process.

Upon commissioning, Thermal Energy's FLU-ACE systems are expected to reduce the customer's fuel usage by over 15 per cent, providing utility savings of approximately $920,000 per year. Carbon emissions will also be reduced by over 2,122 tonnes annually. This is the equivalent amount of energy saved by permanently removing more than 450 cars from the road or switching more than 80,000 incandescent light bulbs to LED.

This is the second and third FLU-ACE installation for this multinational manufacturer. Thermal Energy previously completed a similar project for this customer on a biomass boiler exhaust which is currently delivering a 32-per-cent annual energy reduction and is expected to achieve $3.4-million saving over the product life cycle. This latest project also comes after the successful deployment of Thermal Energy's high-efficiency, low-maintenance GEM steam trap technology at over five of the customer's sites across the Americas and Europe. The scope of this order covers all design, construction, commissioning and training for the system.

"Our partnership with this sector-leading organization has ongoing potential for a number of our products including GEM, FLU-ACE, Heatsponge and DRY-REX," said William Crossland, chief executive officer of Thermal Energy. "This order is just one example of how Thermal Energy is becoming a one-stop shop for a variety of our customers' sustainability needs.

"With up to 50 per cent of industrial energy consumption lost as waste heat, Thermal Energy's solutions reduce our customers' energy use and carbon emissions while also improving their profitability and competitiveness. Not only is increasing energy efficiency the fastest, cheapest and easiest way to reduce carbon emissions, it is also needed to deliver almost half of the world's carbon emission reduction targets -- three times more than renewables."

The project is expected to be completed and revenue earned within nine months.

About Thermal Energy International Inc.

Thermal Energy International is an established global supplier of proprietary, proven energy efficiency and emissions reduction solutions to the industrial and institutional sectors.

We seek Safe Harbor.