Thermal Energy International Inc.
TSX VENTURE : TMG

Thermal Energy International Inc.

May 24, 2005 09:46 ET

Thermal Energy Raises $1,000,100 in Financing Through Non-Brokered Private Placement at a Premium to Current Market Price

OTTAWA, ONTARIO--(CCNMatthews - May 24, 2005) - Thermal Energy International Inc. ("Thermal Energy") (TSX VENTURE:TMG), (the "Company") http://www.thermalenergy.com announced that it has closed a non-brokered private placement with gross proceeds of $1,000,000. The private placement was reserved with the TSX Venture Exchange on April 18, 2005.

The financing consists of an issuance of 3,333,666 units ("Units"), each comprised of one Common Share and one non-transferable Share Purchase Warrant ("Warrant") entitling the holder to acquire one additional Common Share at any time within two years of issuance at a price of $0.50 per warrant in year one and $0.75 per warrant in year two. The Units were sold at $0.30 per Common Share (a premium to market price) for proceeds to Thermal Energy of $1,000,100.

One Insider of the Company participated in the Private Placement. Tim Angus, President and CEO is again taking place in a private placement with the Company, this time acquiring 66,667 Units for an investment of $20,000. Two employees of the Company have also participated. There were no Pro-Group participants in the placement.

The proceeds of the private placement will be used to support the much increased business development efforts the Company is enjoying in the USA and Canada, including preliminary feasibility studies for several customers. The proceeds will also be used to support growth of the operations/engineering team to prepare for future workload as well as pursue Research and Development efforts.

"Thermal is thankful for the strong show of support from the existing and many new shareholders who took part in this placement. We are very pleased with the overwhelming interest level in this very mildly marketed offering." Stated Tim Angus, President and CEO "Considering the markets lack lustre performance of late, combined with the fact that our offering was at or slightly above market price, we feel that this shows the great confidence of the investment community in our ability to grow the business. We are experiencing a time of unprecedented business development opportunity and will put these funds to very good strategic use, ideally producing results on our income statement and in our investor's portfolios. The cash-flow from existing and anticipated projects, along with funds from options and warrants that should be exercised this year, will provide what we feel is a very comfortable level of capital to operate and grow."

This press release is available on the Thermal Energy Investor Relation's site for investor questions, commentary and feedback. Investors are asked to visit http://www.agoracom.com and select the Thermal Energy Investor Discussion and Contact Forum. Alternatively, investors can e-mail their questions or comments directly to TMG@agoracom.com or asked to be placed on the Thermal Energy investor e-mail list to receive all future press releases directly.

About Thermal Energy http://www.thermalenergy.com 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.

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