Thermal Energy International Inc.

Thermal Energy International Inc.

May 12, 2005 10:51 ET

Thermal Energy Becomes an Associate Member of Chicago Climate Exchange'R'...

OTTAWA, ONTARIO--(CCNMatthews - May 12, 2005) - Thermal Energy International Inc. (TSX VENTURE:TMG) -

...joining an elite group which includes some of North America's largest private and public sector entities committed to reducing greenhouse gas emissions.

Thermal Energy International Inc. ("Thermal Energy") (TSX VENTURE:TMG), (the "Company") announced that the Company has joined the Chicago Climate Exchange (CCX®) as an Associate Member. The Chicago Climate Exchange (CCX) is the world's first voluntary, legally binding greenhouse gas (GHG) emission reduction and trading pilot program. CCX is a self-regulatory, rules-based exchange, designed and governed by CCX Members.

CCX Members with direct emissions commit to reduce GHG emissions 1% per year over the years 2003 to 2006 relative to a 1998 through 2001 average. During 2006 program-wide net emissions must be 4% below baseline. Those members that reduce their emission below the required level can sell surplus emission allowances on the exchange or bank them. A member that cannot achieve the reduction target internally can meet its compliance commitment by purchasing emission allowances through CCX's electronic trading platform from other CCX Members that reduce their emissions beyond the reduction target, or purchase project-based offsets.

Thermal joins an impressive group of members from major public and private sector North American entities, including Ford Motor Company, International Paper, IBM, American Electric Power, DuPont, Dow Corning, Bayer Corporation, Baxter Healthcare Corporation, Motorola, Waste Management Inc., Manitoba Hydro, Amtrak, the City of Chicago, The University of Iowa and Oklahoma University, as well as non-industrial environmental innovators such as World Resources Institute, Pax World, Natural Capitalism, and the Rocky Mountain Institute.

"Thermal Energy is elated to have been accepted for membership into this group of elite and environmentally committed organizations" stated Tim Angus, President and CEO of Thermal Energy International. "Participation with the Chicago Climate Exchange will allow us to demonstrate our strong commitment to the environment. Membership will also give us an opportunity to highlight to other participating members and the world what our company's energy recovery and air emissions reduction technology and services can do to greatly assist organizations to achieve their GHG emission targets. The cross-section of corporate members of the CCX represents a number of large fortune 500 type companies with a demonstrated commitment to reducing their emissions, which aligns exactly with our stated target audience for marketing of our technology and solutions. We believe this as an excellent opportunity to share best practices including our technology directly with the environmental leaders of these organizations, while at the same time making a significant contribution to reducing our own direct impact on climate change."

Richard Sandor, Chairman and CEO of the Chicago Climate Exchange, stated "CCX is very pleased to welcome Thermal Energy International to the Exchange," says Dr. Richard L. Sandor, CEO and founder of CCX. "Our Members are leaders in their sectors, and also leaders in the effort to address the challenge of climate change. Participation in CCX continues to emphasize the fact that CCX makes excellent business and governance sense, and it also provides a platform for sound and wise action to protect our planet for ourselves and future generations."

As an Associate Member, Thermal Energy International has committed to purchasing Carbon Financial Instruments (CFIs) equivalent to the greenhouse gas emissions of both its energy consumption and its staff's business travel. The offsets the Firm will purchase and retire are generated by emission cuts by other CCX Members or by CCX Offset Providers.

About Thermal Energy Thermal Energy has been an environmental and energy technology company since 1986. Headquartered in Ottawa, Canada, TMG is a designer, developer, fabricator, and supplier of proprietary and patented environmental compliance (air) and energy conservation, renewable energy products and technology solutions. Thermal Energy is a fully accredited professional engineering firm, and offers advanced process and applications engineering services. FLU-ACE® is a registered trademark of Thermal Energy. Thermal Energy also trades in the United States (PINK:TMGEF)

About CCX CCX is a self-regulatory exchange that administers the world's first multi-national, multi-sector marketplace for reducing and trading greenhouse gas (GHG) emissions. CCX represents the first legally binding commitment by a cross-section of North American corporations, municipalities and other institutions to establish a rules-based market for reducing greenhouse gases. CCX enables members to receive credit for reductions, and to buy and sell credits to determine the most cost-effective means of achieving emission reductions. For additional information regarding the Chicago Climate Exchange please contact:

Rafael Marques

Chicago Climate Exchange



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