WaterFurnace Renewable Energy, Inc. Second Quarter Results: Sales up 21% and Profits up 64% (U.S.$)

    FORT WAYNE, IN, Aug. 12 /CNW/ - WaterFurnace Renewable Energy, Inc.
announced second quarter results today. Bruce Ritchey, President and CEO,
said, "The Company had sales of $31,330,000 for the quarter which was the
highest quarter for sales in Company history. Sales were up 21% and Net Income
was up 64% versus the same quarter last year. Through the first half of the
year sales are up 18% and Net Income is up 63%."
    Ritchey went on to note, "Sales in the U.S. residential business were
robust despite the slowdown in residential new construction and the tight
lending markets. Our dealers are finding that homeowners are very interested
in saving money on their heating and cooling bills and in doing the right
thing for the environment."
    Board Chairman Tim Shields noted, "The board is very pleased with the
outstanding financial results for the quarter and year to date. We are
particularly pleased to see the success in a very tough U.S. residential
market."
    The Board has approved the regular $0.18 quarterly dividend to be paid on
September 2, 2008 to shareholders of record as of August 22, 2008. Management
will conduct a web cast covering the results of the quarter at 10:00 a.m.
Eastern Time on Wednesday, August 13th. Interested parties can listen live or
to the recorded version at
www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2334640 or at the Company's
website at www.waterfurnace.com.

                     WaterFurnace Renewable Energy, Inc.
                      Consolidated Statements of Income
       Prepared using Canadian generally accepted accounting principles
            (Unaudited--Thousands of U.S.$ except per share data)


                                  Three months ended        Six months ended
                                             June 30,                June 30,
                               ----------------------  ----------------------
                                    2008        2007        2008        2007
                               ----------  ----------  ----------  ----------
    Sales                       $ 31,330    $ 25,814    $ 55,143    $ 46,817
      Cost of sales               20,782      17,949      37,314      32,885
                               ----------  ----------  ----------  ----------
    Gross profit                  10,548       7,865      17,829      13,932
      Operating expenses           4,728       4,006       9,508       8,119
      Research and development
       expenses                      575         578         944       1,031
                               ----------  ----------  ----------  ----------
    Income before interest and
     income taxes                  5,245       3,281       7,377       4,782
      Interest income                 34          66          93         135
      Interest on long-term debt      (8)        (13)        (18)        (26)
                               ----------  ----------  ----------  ----------
    Income before income taxes     5,271       3,334       7,452       4,891
      Income taxes                 1,846       1,246       2,445       1,819
                               ----------  ----------  ----------  ----------
    Net income                  $  3,425    $  2,088    $  5,007    $  3,072
                               ----------  ----------  ----------  ----------
                               ----------  ----------  ----------  ----------
    Basic and diluted earnings
     per share U.S.$            $   0.28    $   0.17    $   0.41    $   0.25
                               ----------  ----------  ----------  ----------
                               ----------  ----------  ----------  ----------



                     WaterFurnace Renewable Energy, Inc.
                         Consolidated Balance Sheets
       Prepared using Canadian generally accepted accounting principles
                       (Unaudited--Thousands of U.S.$)

                                                        June 30, December 31,
    Assets                                                  2008        2007
                                                      ----------- -----------
    Current assets
      Cash and cash equivalents                         $  3,426    $  2,021
      Short-term investments                               2,890       6,410
      Receivables                                         16,321      13,846
      Inventory                                            6,951       4,932
      Other current assets                                 1,933       1,762
                                                      ----------- -----------
    Total current assets                                  31,521      28,971

    Capital assets                                         4,405       4,596
    Other assets                                           1,877       1,527
                                                      ----------- -----------
    Total Assets                                        $ 37,803    $ 35,094
                                                      ----------- -----------
                                                      ----------- -----------
    Liabilities
    Current liabilities
      Payables and accruals                             $  7,599    $  6,716
      Income taxes payable                                   256         353
      Provision for warranty claims - current portion      1,716       1,483
      Long-term debt - current portion                       130         130
                                                      ----------- -----------
    Total current liabilities                              9,701       8,682

    Long-term debt                                           765         830
    Deferred compensation                                  1,433       1,160
    Provision for warranty claims                          4,982       4,087
                                                      ----------- -----------
    Total Liabilities                                     16,881      14,759
                                                      ----------- -----------
                                                      ----------- -----------
    Shareholders' Equity
      Share capital                                       14,865      14,831
      Retained earnings                                    6,057       5,504
                                                      ----------- -----------
    Total Shareholders' Equity                            20,922      20,335
                                                      ----------- -----------
                                                      ----------- -----------
    Total Liabilities & Shareholders' Equity            $ 37,803    $ 35,094
                                                      ----------- -----------
                                                      ----------- -----------

    More Information: Additional information is available on the Company's
web site: www.waterfurnace.com. WaterFurnace Renewable Energy, Inc. is traded
on the Toronto Stock Exchange under the symbol WFI.

    Risk and Uncertainties: This press release contains certain
forward-looking statements that may or may not be realized. Investors should
not rely solely on this information to make investment decisions.

    The Company's sales are related to the cost and stability of electricity,
fuel oil, propane and natural gas. Federal, state and provincial building
codes and energy incentives can also impact sales. The Company is subject to
standard risks associated with most companies, such as normal competitive
pressures.

For further information: WaterFurnace Renewable Energy, Inc. (formerly
WFI Industries Ltd.), Bruce Ritchey, President and CEO, 9000 Conservation Way,
Fort Wayne, IN, 46809-9794, (260) 479-3224