Thermal Energy International Inc.
TSX VENTURE : TMG

Thermal Energy International Inc.

October 27, 2005 17:15 ET

Thermal Energy Updates Shareholders on Litigation with Thomas V. Hinke

OTTAWA, ONTARIO--(CCNMatthews - Oct. 27, 2005) - Thermal Energy International Inc. (TSX VENTURE:TMG) (www.thermalenergy.com) is advising shareholders that the Company has also received an offer of settlement from former employee Thomas V. Hinke to settle his $2.3 million claim for the amount of $425,000.

The claim and offer to settle were delivered on October 25, 2005. Thermal Energy is in the process of preparing its defence to the claim and a counterclaim against Mr. Hinke as previously announced. The documentation will be filed with the court on or before November 25, 2005.

The Company is extremely confident of the merits of its defence as well as the upcoming counterclaim. Thermal Energy is committed to continuing its efforts on behalf of all shareholders in respect of this matter.

About Thermal Energy

Thermal Energy (TSX-V: TMG) (www.thermalenergy.com) 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® and THERMALONOx™ are trademarks of Thermal Energy.

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