Mr. William Crossland reports

THERMAL ENERGY TO RELOCATE UK OPERATIONS TO MEET GROWING DEMAND FOR GEM STEAM TRAP PRODUCT

Thermal Energy International Inc. is relocating its United Kingdom operations to a larger industrial unit on the outskirts of Bristol. The move comes as a strategic response to the remarkable growth in demand for the company's proprietary Gem steam trap product, which has seen average monthly volumes increase more than 85 per cent over the past year. Site adaptations have already commenced, and the move is expected to be completed in December.

"We have experienced tremendous growth in our Gem business and this new facility will help us accommodate the growing demand and continue to provide the exceptional quality and service our customers expect," said William Crossland, Thermal Energy chief executive officer. "The new production facility is 2.5 times the size of our current manufacturing space and will allow us to not only more than double throughput capacity from current levels, but also provides space for new in-house equipment testing -- further increasing efficiency and agility to meet customer lead-time requirements -- and more space for research and development, helping us maintain our competitive advantage in the market. Finally, the new location offers improved logistics, enabling faster and more cost-effective transportation of materials and products."

The growing demand for Thermal Energy's Gem steam traps can be attributed to the increasing number of companies around the world committing to reducing their carbon emissions, compounded by the continually increasing cost of carbon and ongoing volatility in natural gas prices. Improving thermal energy efficiency is the fastest, cheapest and easiest way to reduce industrial carbon emissions and Gem steam traps provide a high return on investment with a short, compelling payback.

About Thermal Energy International Inc.

Thermal Energy International Inc. provides energy efficiency and emissions reduction solutions to Fortune 500 and other large multinational companies. It saves its customers money by reducing their fuel use and cutting their carbon emissions. Thermal Energy's proprietary and proven solutions can recover up to 80 per cent of energy lost in typical boiler plant and steam system operations while delivering a high return on investment with a short, compelling payback.

Thermal Energy is a fully accredited professional engineering firm with engineering offices in Ottawa, Canada, Pittsburgh, United States, as well as Bristol, U.K., with sales offices in Canada, the U.K., the U.S., Germany, Poland and Italy. By providing a unique mix of proprietary products together with process, energy and environmental engineering expertise, Thermal Energy can deliver unique, site-specific turnkey and custom engineered solutions with significant financial and environmental benefits for its customers.

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