Thermal Energy International Inc.

Thermal Energy International Inc.

March 08, 2005 11:44 ET

Thermal Energy Receives Letter of Intent from Johnson Controls for Pulp and Paper Heat Recovery Project




MARCH 8, 2005 - 11:44 ET

Thermal Energy Receives Letter of Intent from Johnson
Controls for Pulp and Paper Heat Recovery Project

OTTAWA, ONTARIO--(CCNMatthews - March 8, 2005) - Thermal Energy
International Inc. (TSX VENTURE:TMG) (the "Company") is pleased to announce it has received a
signed Letter of Intent from Johnson Controls for a Pulp and Paper
customer in Eastern Canada.

The Letter of Intent follows the completion by Thermal of a preliminary
study of energy savings opportunities available through implementation
of a FLU-ACE® Heat Recovery System. Under the agreement, Thermal will
be paid fees amounting to approximately $80,000 for completing a more
detailed engineering evaluation of the opportunity to refine and confirm
Thermal's previously proposed costs and savings associated with project
implementation. Under the Letter of Intent, the successful confirmation
of previously proposed project costs and savings will culminate in the
signing of a substantial contract for Thermal Energy. Specific economic
and technical details of the contract cannot be disclosed at this time
due to confidentiality. It is anticipated, that the detailed engineering
evaluation will take approximately 8 weeks. Thermal hopes to announce
more specific details about this project shortly thereafter, pending
review and approval of the proposed technical solution by Johnson
Controls and its customer.

"This is an exciting opportunity for Thermal Energy, since successfully
meeting the terms of this Letter of Intent will lead to a substantial
contract. Additionally, it will allow us to enter a new and promising
market for our technology" stated Tim Angus, President & CEO of Thermal.
"We look forward to an expeditious completion of the detailed
engineering evaluation and confirmation of our costs and savings so that
we can begin implementation of this unique and innovative solution for
Johnson Controls and their customer. Pulp and Paper is a huge market for
our FLU-ACE® technology and we are hopeful that we can finish
solidifying this contract and leverage the experience and proof-source
to grow our joint solution with Johnson Controls across the entire Pulp
and Paper market in North America".

About Thermal Energy

Thermal Energy is an environmental and energy technology company since
1986. Headquartered in Ottawa, Canada, it is an established designer,
developer, fabricator, and supplier of superior proprietary and patented
environmental compliance (air) and energy conservation, renewable energy
products and technology solutions. Thermal Energy is also 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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