Mr. William Crossland reports

THERMAL ENERGY WINS THREE HEAT RECOVERY ORDERS TOTALLING $2.1 MILLION WITH GLOBAL NUTRITION COMPANY

Thermal Energy International Inc. has received repeat business in the form of three orders worth approximately $2.1-million from a global nutrition company. The orders include two turnkey projects in the United States and a major equipment package for a site in Indonesia, representing the company's first heat recovery order in that country.

"We received three pieces of repeat business in quick succession," said William Crossland, Thermal Energy chief executive officer. "In addition to an MEP order, we won our 10th and 11th turnkey heat recovery projects from this customer, making that five turnkey projects won with them in under a year. Including these latest orders, our total business with this customer since 2019 now exceeds $16.8-million, with at least partial penetration in 28 manufacturing sites across nine countries worldwide. We continue to identify additional opportunities to partner with them across their global manufacturing network."

Significance of the major equipment package

"The MEP order is an important proof point against the strategic plan we announced last year. With MEPs, we complete the engineering and supply the equipment, but the customer handles the installation. This can dramatically shorten the sales cycle while providing customers more flexibility. They can be especially helpful in regions where we don't yet have installation experience or as many contacts."

Energy savings and impact

"We help industrial operations permanently cut energy costs and emissions," added Mr. Crossland. "Our long-standing partnership with this customer is focused on real, economic decarbonization. These latest orders are a strong signal: Our solutions deliver measurable value, and the opportunity ahead remains significant as we continue helping this customer meet their energy savings and environmental goals."

The three orders announced today are expected to deliver significant energy savings by capturing heat that is currently blowing out of the customer's steam boiler exhausts. By recovering and redirecting this waste energy back into their process, Thermal Energy's solutions are projected to add $410,000 to $472,000 in annual natural gas savings while reducing their annual carbon dioxide equivalent emissions by another 2,306 to 2,637 tonnes.

Revenue timing

The revenues expected from these three orders are expected to be earned within the next 12 months, with the majority recognized in the company's fiscal year ending May 31, 2027. The company expects the gross margin for the turnkey projects 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 provides energy efficiency and emission 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, and Pittsburgh, United States, as well as Bristol, United Kingdom, 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 its customers.

Thermal Energy's common shares are traded on the TSX Venture Exchange under the symbol TMG and on the OTCQB under the symbol TMGEF.

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