Thermal Energy International Inc.
TSX VENTURE : TMG

Thermal Energy International Inc.

April 03, 2006 06:00 ET

Thermal Energy to Supply FLU-ACE'R' Equipment for Quebec Hospital

OTTAWA, ONTARIO--(CCNMatthews - April 3, 2006) -

Attention business, healthcare, energy, environment editors

Win attests to TEI strength in healthcare market as competitive equipment supplier

Thermal Energy International Inc. (TSX VENTURE:TMG)("the Company", www.thermalenergy.com) is pleased to announce it has been selected to provide a FLU-ACE® heat recovery system for the Centre Hospitalier Universitaire de Quebec (CHUQ).

The system will be installed at the medical centre's newly-constructed Centre Mere-enfant at CHUQ's St Foy site. Total cost of the equipment supply contract is $172,000. The FLU-ACE® system will be designed to reduce natural gas consumption by up to 15% at the hospital and is the second FLU-ACE® system in the CHUQ group of hospitals. The first system was installed at the CHUQ's Saint Francois D'Assise hospital site in 1992.

"Thermal Energy has worked over the past number of months to develop a simplified, lower cost, standard FLU-ACE® offering. This new offering is a compelling, competitive, high value solution for a rapidly growing equipment supply market. It gives us additional revenue opportunities and positions us to enter into license agreements for our technology with re-sellers," said President and CEO Tim Angus. "This win against several major competitors attests to our success in this regard."

The equipment supply market typically has a faster turnaround including;

- Shorter bidding processes;

- Faster entry through a client's existing third-party engineering and consulting relationships;

- Expedited delivery with pre-configured products;

- Shorter completion timeframes; and

- Management of multiple projects with minimal resources.

"This contract win is one we hope to replicate repeatedly in healthcare and other sectors," said Mr. Angus. "These new revenue streams will enhance our ability to pursue opportunities in our core business of providing custom energy and emission reduction solutions."

Under this contract, Thermal Energy will supply a preconfigured FLU-ACE® system and related materials and commissioning services. Engineering will be conducted by a third party and Thermal Energy expects to supply the equipment for the contract within six months.

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, developer, fabricator, and supplier of proprietary and patented energy conservation, renewable energy products, environmental compliance (air) and technology solutions. Thermal Energy is a fully accredited professional engineering firm, and offers advanced process and applications engineering services. FLU-ACE® and THERMALONOx™ are trademarks of Thermal Energy.

To find out more about Thermal Energy International Inc. (TSX VENTURE:TMG), visit our website at www.thermalenergy.com.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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