Flu-Ace Heat Recovery Solution Wins Two Awards

Thermal Energy International Inc. (TSX-V: TMG) (www.thermalenergy.com) congratulates Mike Sanford of Minas Basin Pulp and Power Co. for winning an Energy Conservation Award from the Pulp and Paper Technical Association of Canada (PAPTAC) yesterday at the industry's annual gathering in Montreal.

Sanford, Steam Plant Supervisor of Minas Basin Pulp and Power, located in Hantsport, Nova Scotia, won the award for reducing the mill's fuel oil consumption by an estimated 15% to 20% by using Thermal Energy's FLU-ACE(R) heat recovery solution.

The project, implemented by Johnson Controls, saves thousands of dollars a day in energy costs and also reduced greenhouse gases and other emissions. It utilizes Thermal Energy's innovative FLU-ACE(R) heat recovery technology to recover waste heat from the paper making dryer and use it in the manufacturing process to offset the mill's oil consumption.

"We extend our congratulations to Mike Sanford and Minas Basin for this outstanding achievement and demonstrating leadership in reducing energy costs and fossil fuel use," said Thermal Energy President and CEO Tim Angus. "We also congratulate Minas Basin for showing industry that the fight against global warming can be achieved with business and financial benefits - not as a cost or threat to business.

Thermal Energy has also won a 2006 Project Merit Award from the U.S.-based Environmental Business Journal, for the application of FLU-ACE(R) at Minas Basin, which in addition to the benefits derived by Minas Basin, also was largely responsible for the company achieving record revenues in Fiscal 2006.

The awards will be presented in a special ceremony at the Environmental Business Journal's fifth annual Environmental Industry Summit in Coronado, California, on February 28, 2007. The Journal is recognized as the leading business publication for companies operating in the environmental industry.

"We are extremely honoured to receive this recognition from such an influential publication as the Environmental Business Journal," said Mr. Angus. "This is a tremendous validation of our FLU-ACE(R) heat recovery solutions and the energy, environmental and business benefits Thermal Energy can provide to its customers." -- www.tsx.com