Mr. William Crossland reports

THERMAL ENERGY RECEIVES $1 MILLION TURNKEY HEAT RECOVERY ORDER FROM MULTINATIONAL BUILDING MATERIALS COMPANY

Thermal Energy International Inc. has received a turnkey heat recovery order valued at approximately $1-million from a leading multinational building materials company. The turnkey project will include the installation of three HeatSponge multipass two-stage boiler economizers proprietary to and developed by the company's wholly owned subsidiary, Boilerroom Equipment Inc.

"We're excited to support this global manufacturer in reducing their fuel costs and progressing toward their greenhouse gas emission reduction goals," said William Crossland, chief executive officer of Thermal Energy International. "This turnkey project, which originated from a project development agreement signed in March of last year, will enhance the thermal efficiency of the site's three largest boilers. We look forward to building a strong relationship with this customer. Importantly, there are potentially additional opportunities for us not only at this location but also at six other U.S. manufacturing sites and several of their international facilities."

When completed, this turnkey project is expected to provide annual natural gas savings of 41,545 mmBTU (million British thermal units) while reducing greenhouse gas emissions by up to 2,202 metric tons CO2 (carbon dioxide) per year, or 10-per-cent reduction of the site's total CO2 emissions.

The revenue from this order is expected to be earned within 12 months. The company expects the gross margin for the project to be in line with historical amounts for its turnkey projects. Thermal Energy's overall gross margins are available in its quarterly disclosure materials.

About Thermal Energy International Inc.

Thermal Energy International provides energy efficiency and emissions reduction solutions to Fortune 500 and other large multinational companies. The company 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, U.K., 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 the company's customers.

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