Smartcool signs distribution agreement for Germany, receives initial order for multiple installations

    VANCOUVER, May 13 /CNW/ - Smartcool Systems Inc. (TSXV: SSC), is pleased
to report that Smartcool International Inc., a wholly owned subsidiary of the
Company, has signed a Distribution Agreement with Smartcool Systems GmbH to
become the exclusive distributor for all Smartcool products in the territory
of Germany.
    The initial Memorandum of Understanding that was signed in October 2007
required a feasibility study, which comprised of the installation of the
Energy Savings Module (ESM(TM)) in multiple locations. This study has been
completed successfully and the savings reports generated from the tests
indicated significant cost savings.
    The signing of the Distribution Agreement coincides with an initial order
from Smartcool Systems GmbH for equipment to be installed in multiple
locations. These locations include the major target sectors that have been
identified by the distributor, being Food & Beverage, Data Centres and the
Telecommunications sector.
    "We are extremely excited with the signing of this agreement as Smartcool
is aggressively entering a market that is one of the largest consumers of
electricity in the world and one that relies on imports for most of its energy
supply" states George Burnes, President of Smartcool Systems Inc. "Germany is
widely accepted as a world leader in the adoption of energy efficiency
technologies. There is a commitment to meet European Union targets for
reduction in carbon emissions and also to alleviate the pressures of ever
increasing power costs to Germany's end-users. We are fully aware of the
advancements being made in Europe with respect to green technologies and their
adoption of such and Smartcool is committed to expanding its presence in this
region."

    Target Market - Germany:

    Germany is one of the world's largest energy consumers with limited
domestic energy resources which results in Germany importing most of its
energy. Germany has one of the largest economies in the world with GDP in
excess of US$2.8 trillion and is also one of the world's largest energy
consumers.
    Germany is the third largest carbon dioxide emitter in the OECD, behind
the United States and Japan. Germany has a strong commitment to protecting its
environment. It has actively promoted the use of renewable energy, both under
the Kohl government with the Electricity Feed Law and under Schroeders'
government with eco-taxes. However, Germany's reliance on coal, particularly
brown coal, for electricity generation and the heavy industrialization of the
economy has lead to serious problems with air pollution, acid rain and habitat
degradation.
    Germany ratified the Kyoto Protocol on climate change in May 2002 however
the EU has decided to meet its Kyoto obligations as a whole, rather than
individual signatories. Under the EU's burden-sharing program, Germany must
cut its carbon dioxide emissions by 21% relative to the 1990 baseline during
the 2008-2012 commitment period.

    About Smartcool - "A Clean-Tech Company Specializing in Energy Cost
    Reduction Technologies"

    Smartcool Systems Inc. is an advanced energy savings solutions company
specializing in energy and cost reduction technologies for commercial,
industrial and retail businesses. The company's wholly owned subsidiary,
Smartcool International Inc., is the owner, developer, manufacturer and
worldwide distributor of the Energy Saving Module (ESM(TM)). This green
technology reduces the electricity consumption (kWh) and maximum demand (KW)
of air conditioning and refrigeration compressors. Rather than replacing
existing equipment, the ESM(TM) works in conjunction with existing HVAC
controls in order to ensure that compressors work at maximum efficiency, while
maintaining preset temperature levels and without causing over-cycling.
    Rising global energy demand is resulting in significant increases in
energy prices. Environmental concerns are causing both government and industry
to re-examine the way they do business. Smartcool provides companies with
solutions to address the growing pressure to reduce energy costs, increase
profits and reduce green house gas emissions. For more information, please
visit www.smartcool.net.

    The TSX Venture Exchange has neither approved nor disapproved the
    contents of this press release.

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For further information: Allan Thompson, (604) 669-1388, or
1-888-669-1388, or allant@smartcool.net