University of Miami reports on Smartcool's energy reduction technology for Florida Power & Light Company



    "Smartcool's green technology demonstrates significant savings to major
    utility"

    VANCOUVER, July 9 /CNW/ - Smartcool Systems Inc. (TSXV: SSC), reports
that the Company's Energy Saving Module (ESM(TM)) technology has successfully
completed vigorous testing by the University of Miami's Department of
Industrial Engineering for Florida Power & Light Company ("FPL") under FPL's
Conservation R&D Program. The goal of the research was to estimate how
Smartcool's ESM(TM) is able to reduce energy consumption overall but more
importantly reduce demand during peak hours both in the Summer and Winter
schedule. The ESM technology was installed on the HVAC equipment at a site of
a National Drug Chain located in Miami, Florida.
    "It was a privilege to be chosen to participate in this R&D project and
we are extremely pleased with the outcome of the 12 month test completed by
the University of Miami," states George Burnes, President & CEO of Smartcool
Systems Inc. "Having such a well regarded Utility such as FPL publish a report
that outlines the economic benefits available by using the ESM(TM) is a
significant milestone for our Company. The independence of such a report and
the ability to distribute it as a public document to interested parties
throughout our distribution network will only help the ESM(TM) to become more
widely adopted technology world-wide."
    "This report is a valuable tool for our sales representatives especially
in the Florida region," added Chris Lefaivre, VP Sales and Marketing for
Smartcool Systems Inc. "The savings shown in the report reflects a 29-month
payback, before applying rebates that it now qualifies for, based on the size
and location of the test environment. Industry reports have shown that this
falls well within the parameters that industry is looking for when evaluating
the economics of capital programs. We will now be able to approach customers
armed with a document that illustrates impressive kWh savings and peak demand
reduction giving them further confidence that Smartcool's ESM(TM) technology
will provide significant cost savings."
    The FPL Group, with annual revenues of nearly $16 billion and a growing
presence in 26 states, is nationally recognized as one of the country's
premier energy companies. FPL Group's two principal subsidiaries are Florida
Power & Light Company and FPL Energy, LLC. FPL is the largest investor-owned
electric utility in Florida, serving more than 4.4 million customer accounts.
It is one of the largest and fastest-growing electric utilities in the United
States and is the nation's leading utility in customer energy efficiency
programs. FPL Energy is a leader in producing electricity from clean and
renewable fuels, a world leader in the development and operation of wind
power, and the largest generator of solar power in the nation.
    Chris Lefaivre continued, "FPL is committed to its community and the
environment. They invest more than $100 million annually on energy efficiency
programs and incentives and see efficiency as a major part of stemming the
ever increasing demand for energy. Over the past decade the FPL Product
Development Group has identified, tested and assisted with the deployment of
green technologies that have mitigated the need to build 10 power plants,
saving millions of dollars in generation costs, not to mention the
environmental benefits."
    George Burnes summarized, "We feel confident that being able to provide a
third-party report from FPL, a globally recognized leader in energy efficiency
initiatives and environmental programs, will provide further comfort to our
customers and it is our expectation that the sales cycle for our technology
will be reduced significantly."
    The following provides the Executive Summary of the final report prepared
by The University of Miami for FPL with respect to the 12 month field
monitoring test of the ESM(TM). The test was completed at one of FPL's client
locations, a national chain drug store located in Miami, Florida.

    Report - Executive Summary

    "This is a field test of the SMARTCOOL(TM) Energy Savings Module(TM)
(ESM(TM)) in a commercial HVAC application conducted by the University of
Miami for Florida Power & Light Company under FPL's Conservation R&D Program.
The Smartcool is an electronic control system which collects temperature data
versus time when the compressor is on or off in order to calculate the optimal
run time for each compressor. Control modules connect to switches located
between the thermostat and each compressor.
    The goal of the research is to estimate demand reduction of a heating/
ventilation/and air-conditioning (HVAC) control technology from Smartcool
Systems, Inc. during Florida Power & Light summer schedule peak hour (4:00 to
5:00 pm), and winter schedule peak hour (7:00 to 8:00 am) specifically during
the months of August and January, respectively. Additionally, consumption and
reduction of energy (kilowatt-hours) is also of primary importance.
    To measure the impact of the SMARTCOOL(TM), the University of Miami,
Department of Industrial Engineering team installed, 21 dedicated data loggers
and current transformers (CT), 3 loggers at the service entrance and 3 loggers
on each of the A/C roof top units, free-standing, building of a national chain
drug store in Miami, Florida.
    These loggers were installed to acquire the power consumption at the
service entrance and for each of these six units for a full one year. The
SMARTCOOL(TM) was switched ON/OFF every other week to minimize the effect of
the weather variation.
    This report explains the methodology followed by the University of Miami
team, presents the main results obtained, and explains the analysis techniques
followed to investigate the performance of the SMARTCOOL(TM) to determine
whether or not the installation of the SMARTCOOL(TM) on the cooling units will
result in a reduction in the power consumption and/or the peak demand. The
data collected using the HOBOs were validated by comparing it to a number of
the electric bills of that facility. The average absolute percentage
difference between the logged kWh and the FPL reported kWh was 3.34% for the
5 billing cycles selected during the winter period, while the average absolute
difference between the logged kW demand and the FPL reported kW demand was
2.32%, and for the summer period the average absolute percentage difference
between the logged kWh and the FPL reported kWh was 3.34% for the 3 billing
cycles selected, while the average absolute difference between the logged kW
demand and the FPL reported kW demand was 2.32%.
    After validation of the data collection process, the multiple regression
technique was the statistical tool used to analyze the data obtained. The kWh
consumption data of the cooling units corresponding to an outside temperature
that was below the thermostat setting of 70degreesF were excluded from the
analysis.
    Regression equations were developed to describe the relationship between
the power consumption of the A/C units (kWh), peak demand recorded at the
service entrance (kW) and both the outside temperature and the SMARTCOOL(TM)
were developed.
    A t-test was performed on both the indoor relative humidity (RH) and
temperature for the summer months. The first hypothesis tested was whether the
mean RH with the SMARTCOOL(TM) "ON" equals the mean RH when it's "OFF". The
t-test showed that there was no statistical significant difference (P (less
than).001) between the mean RH values when the SMARTCOOL(TM) was "ON" and when
it was "OFF".
    The same conclusion was drawn when performing the t-test on the indoor
temperature, there was no statistical evidence that turning the SMARTCOOL(TM)
will significantly alter the indoor temperature (P (less than).001).
    Based on the regression equation developed, it was concluded that the
SMARTCOOL(TM) managed to reduce the kWh consumption by 8.9% and to reduce the
peak demand by 10.8 % respectively. Using the test building characteristics
and typical average weather for the FPL service territory, the annual energy
savings is estimated to be 43,660 kWh with a demand reduction of 6.9 kW at
4-5 PM in August. The greatest energy savings occurred during the summer
months. These savings were achieved with no report of change in comfort by the
occupants of the test location."

    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)) and the ESM
ECO(3)(TM). These green technology products reduce the electricity consumption
(kWh) and maximum demand (KW) of air conditioning and refrigeration
compressors through enhanced system performance. Rather than replacing
existing equipment, Smartcool's products work 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 around
the world 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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