Thermal Energy International Inc.
TSX VENTURE : TMG

Thermal Energy International Inc.

April 04, 2006 06:30 ET

Thermal Energy Acquires Exclusive Rights to GEM'R' Condensate Return Technology for Key North American Markets

OTTAWA, ONTARIO--(CCNMatthews - April 4, 2006) -

Attention business, energy, environment editors

Thermal Energy International Inc. (TSX VENTURE:TMG)("the Company", www.thermalenergy.com) is pleased to announce it has acquired exclusive rights in Canada and key U.S. markets to a new energy saving, condensate return technology.

"GEM is very pleased to have found such a high quality partner in Thermal Energy to carry our GEM® Condensate Return System in Canada and the U.S.," said Robert Williams, Managing Director of GEM America. "Thermal's expertise in designing energy and emission reduction solutions for a wide variety of industrial and commercial applications is exactly what we have been looking for in expanding into North America."

Through a licensing agreement with GEM, Thermal Energy becomes the exclusive supplier of the GEM® Condensate Return System in Canada and key U.S. markets including Michigan, one of the largest U.S. industrial zones.

"One of the primary strategic goals of Thermal Energy's new management team has been to maximize our ability to engage new customers with innovative solutions, while profitably expanding our potential revenue base with our existing customers," said Thermal Energy President and CEO Tim Angus. "The GEM® Condensate Return System enhances the solution offering we provide our customers in existing markets and provides the company with entry into new markets such as automotive, pharmaceutical and petrochemical where we can promote other innovative technologies and solutions."

The U.S. Department of Energy estimates that the typical industrial facility can save 20% in fuel costs by improving steam systems with measures such as condensate recovery, more efficient steam trap operation, fixing steam leaks and heat recovery. If such improvements were adopted industry-wide, they would result in more than $5 billion in annual fuel savings and reduce emissions by 32 million metric tons.

The function of a steam trap is to only release steam that has condensed back to water and is designed to maintain steam system energy efficiency for performing specific tasks such as heating a building or maintaining heat for process use.

The unique GEM® Condensate Return System is designed as a permanent replacement solution for traditional lower efficiency steam traps which have moving components, are prone to frequent failures, have short life expectancies, high maintenance costs and waste energy. The GEM® technology has no moving components to wear out or fail. It delivers permanent energy and maintenance cost reductions while eliminating repair costs.

The GEM® Condensate Return System provides customers with:

- Permanent 12-55% reduction in steam/fuel use and energy costs;

- Corresponding air emission reductions;

- Complete elimination of steam trap repair costs and significant maintenance cost reductions though permanent solution versus industry standard equipment two to five year life expectancy;

- Unprecedented 10 year performance guarantee with 0% failure rates;

- Client payback in as little as six months.

The GEM® system has been installed throughout Europe at facilities owned by companies such as Dow Corning, Shell, Total Oil, Exxon, BASF, Coca Cola, Dupont, GlaxoSmithKline, Michelin, Pfizer and McCain's. GEM® technology has already been installed at some of these customers' North American sites and as such will provide Thermal with an immediate addressable customer base to focus on providing these and other solutions. Other implementations include hospitals, textile and paper manufacturing, and the pharmaceutical sector.

About GEM

Gardner Energy Management Ltd. is a privately held company based in Bristol, United Kingdom. In 1995 the 'GEM' Venturi Steam Trap was patented and launched onto the market. Since 1998, in recognition of its achievements in saving steam and the environment whilst improving safety, it has won a series of prestigious awards. To find out more about Gardner Energy Management Ltd. please visit their web site at www.gemtrap.com .

About Thermal Energy

Thermal Energy International Inc. is an innovative technology company providing custom energy and emission reduction solutions. Headquartered in Ottawa, Canada, TEI is a designer, design build developer, fabricator, and supplier of proprietary and patented energy conservation, renewable energy and environmental technology solutions. Thermal Energy is a fully accredited professional engineering firm, and offers advanced process and applications engineering services. FLU-ACE®, THERMALONOx™ and THERMALOZOMAx™ are trademarks of Thermal Energy International. To find out more about Thermal Energy International Inc. (TSX VENTURE:TMG), visit our website at www.thermalenergy.com.

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