SmartCool commences testing in lucrative Chinese telecommunications marketplace



    VANCOUVER, June 5 /CNW/ - SmartCool Systems Inc. (TSXV: SSC) is pleased
to announce that Smartcool International Inc., a wholly owned subsidiary, has
signed a "Trial Period Agreement" for its ESM(TM) technology with Wuhan
Eco-Energy Systems Co. Limited (China) ("EES China"). The location selected is
China Telecom's Huangshi Telephone Exchange, located in Hebei province. China
Telecom Corporation Limited is the leading provider of wireline
telecommunications services in China, providing voice, data, image,
multimedia, telecommunications and information services to a subscriber base
exceeding 200 million.
    The testing/evaluation process will be held over a 30 day period giving
all parties the opportunity to fully evaluate the energy reduction
capabilities of the ESM(TM). China Telecom has approximately 100 other
facilities in this vicinity and a further 900 locations in Hebei province,
with additional locations in 19 other provinces/autonomous regions and
municipalities across China. The evaluation is also being monitored by several
other entities that are clients of EES China including mobile telephone and
distribution companies. At the end of the evaluation period a Savings Report
and Purchase proposal will be provided to China Telecom by EES China.

    Wuhan Eco-Energy Systems Co. Limited (China)

    Wuhan Eco-Energy Systems Co. Limited (China), ("EES China"), is a
partnership between Eco-Energy Systems Pty Ltd ("EESPL") out of Australia and
Mr. Zhang Zhulin a successful businessman from Guanghzou and Mr. Yuan Juancin,
Deputy Dean of the Wuhan Huazang Technology University. Eco-Energy Systems Pty
Ltd., have provided energy saving services to industry customers for over ten
years in the Australian marketplace. Mr. Zhulin and Mr. Juancin have built a
hugely successful mobile telephone distribution business across China with Mr.
Zhang Zhulin controlling distribution of international technologies from
global leaders in the telecommunications industry for over 15 years. The
Formation of this JV partnership will give "EES China" access to capital,
superb marketing and networking in China, a strong awareness of western
business and a strong respect for the protection of International IP in China.
Mr. Tom Mitchell, Sales and Marketing Director from "EESPL", has relocated to
Wuhan, China, and has been implementing energy efficiency solutions to known
contacts and networks in China through both government and industry since the
establishment of the partnership. The company is supported by a team of
marketing, engineering and administrative staff based in Wuhan.
    The objective of EES China is to become the leading project based energy
efficiency contractor in China and provide an innovative "technology pipeline"
to China through which a range of the 'world's best' energy saving technology
products can be supplied and installed into industry client facilities. The
ESM(TM) has been selected because of the long track record of successful
installations conducted by Eco-Energy Systems PTY Ltd in the Australian
marketplace over the past number of years.
    EES China is initially focusing on major facilities and buildings in the
cities of Wuhan and Huangshi in Hebei Province with approval to expand this
contracting model into a further 6 Provinces in China. The Company is
committed to utilizing the combined technological, management, operational and
marketing strengths of its team to provide energy savings services, projects
and technologies to industry customers.
    EES China has wide acceptance throughout all levels of Provincial and
Local Governments in China. A rapidly expanding market and high energy prices,
has resulted in new Government regulations requiring industry in China to
reduce energy demand by 20% by 2010.

    Smartcool Systems Inc.

    Smartcool Systems Inc. is an advanced energy savings solutions company
specializing in energy and cost reduction technologies for commercial 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 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.

    %SEDAR: 00015981E




For further information:

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

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