Thermal Energy International Inc.
TSX VENTURE : TMG

Thermal Energy International Inc.

August 19, 2005 15:09 ET

Ontario Health Minister Inaugurates Thermal Energy FLU-ACE'R' System at Stratford General Hospital: Natural Gas Use and Greenhouse Gas Emissions Cut by 20%, Frees $ for Health Care

STRATFORD, ONTARIO--(CCNMatthews - Aug. 19, 2005) - Thermal Energy International Inc. (TSX VENTURE:TMG) www.thermalenergy.com is pleased to announce that the Hon. George Smitherman, Health Minister for the Province of Ontario joined company officials today for the official start-up of the company's latest FLU-ACE® installation at the Stratford General Hospital site of the Huron Perth Healthcare Alliance.

"It was a great honour to have Minister Smitherman join us today to mark the activation of our seventh FLU-ACE® system at a hospital and the sixth now in use by hospitals in Ontario," said Mr. Angus. "The Huron Perth Healthcare Alliance is to be commended for its concerted effort at reducing energy costs and air pollution with the use of innovative technology such as the FLU-ACE® system."

Thermal Energy's FLU-ACE® technology recovers waste heat from a variety of combustion sources, sometimes providing a complete smokestack replacement, while removing harmful pollutants, and returning "free" clean hot water for industrial processes and building heating. FLU-ACE® also provides an attractive return on investment by significantly reducing fuel consumption and generating certifiable emissions credits.

Minister Smitherman and John Wilkinson, MPP Perth-Middlesex and Parliamentary Assistant to the Minister of the Environment, were given a tour of the Stratford General Hospital site installation by Mr. Angus. They were accompanied by officials from Johnson Controls, Inc. and the Huron Perth Healthcare Alliance. Mr. Angus showed how the waste heat recovered by the FLU-ACE® is being redirected for building heating. Minister Smitherman and Mr. Wilkinson participated in a ribbon cutting to mark the system's activation.

This FLU-ACE® installation will reduce the Stratford General Hospital site's consumption of natural gas by 20% annually generating an estimated annual saving in excess of $154,000. It also reduces greenhouse gas emissions by at least 20% a year including 776 metric tons of carbon dioxide (CO2), the equivalent of removing more than 170 cars from area roads.

The 10-metre tall FLU-ACE® system which sits mostly inside the hospital's boiler room facility and captures the waste heat and flue gases from three boilers, virtually eliminates the use of the hospital's existing 45-metre tall smoke stacks.

Huron Perth Healthcare Alliance CEO Andrew Williams said he looks forward to deriving the benefits of the FLU-ACE® system and other energy reduction measures at his facility. "The project's impact on patients and hospital savings will be significant," said Mr. Williams. "We can also all breathe a little easier thanks to the reduction in greenhouse emissions."

The system at the Stratford General Hospital site was supplied to Johnson Controls, Inc. (NYSE: JCI) as part of its major energy reduction project at all four hospitals in the Huron Perth Healthcare Alliance (HPHA). Under the project Johnson Controls issued Thermal Energy a supply and engineering contract for the system as previously announced in a news release on June 15, 2004. The FLU-ACE® system accounts for more than one-third of the energy savings and more than half of the emission reductions being derived from the $3.8 million energy reduction project at the three hospitals.

About Thermal Energy www.thermalenergy.com Thermal Energy (TSX-V: TMG) is an environmental and energy technology company established in 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.
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Contact Information

  • Thermal Energy International Inc.
    Stuart McCarthy
    Investor Relations and Communications
    (613) 723-6776 or (613) 762-4321 (cell)
    stuart.mccarthy@thermalenergy.com
    or
    Huron Perth Healthcare Alliance
    Peter Robertson
    Director of Building Services
    (519) 272-8210, ext. 2538
    or
    Huron Perth Healthcare Alliance
    Chuck Meyer
    Manager of Building Services
    (519) 272-8210, ext. 2538