Mr. William Crossland reports

THERMAL ENERGY SECURES $3.2 MILLION TURNKEY HEAT RECOVERY PROJECT WITH EUROPEAN AGRICULTURAL AND DAIRY CO-OPERATIVE

Thermal Energy International Inc. has received an order for a turnkey heat recovery project valued at $3.2-million from a European agricultural and dairy co-operative.

"We are pleased to announce this significant order from a new customer in one of our key sectors," said William Crossland, Thermal Energy chief executive officer. "This turnkey heat recovery project is expected to provide annual fuel savings of 1.2 gigawatt-hours while reducing the customer site's carbon emissions by approximately 2,446 tonnes per year. We look forward to helping them realize measurable benefits while also working with them to identify other potential energy efficiency and emissions reduction opportunities at this site as well as the other sites they operate."

This turnkey heat recovery project is expected to recover waste energy from the boiler exhaust from two boilers and use the captured energy to reduce overall fuel consumption on site. By recovering and redirecting this waste energy back into their process, this project is projected to result in approximately $1.2-million in annual savings for the customer when including CO2 (carbon dioxide) offset.

The revenues expected from this latest order is expected to be earned within the next 12 months. The company expects the gross margin for the turnkey 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, 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 our customers.

Thermal Energy's common shares are traded on the TSX Venture Exchange under the symbol TMG, on the OTCQB under the symbol TMGEF and on the Frankfurt Open Market (FSE) under the symbol EUW.

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