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THERMAL ENERGY RECEIVES $1,700,000 HEAT RECOVERY ORDER FROM LEADING PRODUCER OF INDUSTRIAL AND FUEL ALCOHOLS

Thermal Energy International Inc. (TMG.V) has received a $1.7-million order from a leading producer of industrial and fuel alcohols for the supply and installation of one of Thermal Energy's proprietary Flu-Ace heat recovery systems at one of the customer's ethanol plants. The project is expected to be completed and revenue earned over th e next six m onths .

"Our FLU-ACE heat recovery system will be used to heat a new greenhouse being built adjacent to one of the customer's ethanol plants," said William Crossland, CEO of Thermal Energy. "The amount of energy this FLU-ACE system is estimated to recover and deliver to the greenhouse would be enough to power approximately 1,300 average North American homes. Furthermore, using the waste heat from the ethanol plant, that otherwise would have been lost, to heat the greenhouse is an innovative win-win that provides the greenhouse with an economic and carbon neutral source of energy while providing the ethanol producer with an additional source of revenue."

Thermal Energy's FLU-ACE heat recovery technology has been implemented on dryer and boiler systems with great effectiveness in industrial facilities of many Fortune 500 and other leading multinational clients around the world. A series of related case studies and technical white papers demonstrating the energy efficiency and the environmental impact of the FLU-ACE technology are available on the Company's website at www.thermalenergy.com/flu-ace-heat-recovery .

About Thermal Energy International Inc.

Thermal Energy International Inc. is an established global supplier of proprietary, proven energy efficiency and emissions reduction solutions to the industrial and institutional sectors worldwide. We save our customers money and improve their bottom line by reducing their fuel use and cutting their carbon emissions. Our customers include a large number of Fortune 500 and other leading multinational companies across a wide range of industry sectors.

Thermal Energy is also a fully accredited professional engineering firm, and can offer advanced process and applications engineering services.

By providing a unique mix of proprietary products together with process, energy, environmental, and financial expertise Thermal Energy is able to deliver unique and significant financial and environmental benefits to our customers.

Thermal Energy's products include; GEM (R) - Steam traps, FLU-ACE (R) - Direct contact condensing heat recovery, and Dry-Rex (R) - Low temperature biomass drying systems.

Thermal Energy International Inc. has offices in Ottawa, Canada as well as Bristol, U.K., United States, Italy and China. The Company's common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG.