Smartcool Establishes New Distributor in Israel

    VANCOUVER, Oct. 11 /CNW/ - Smartcool Systems Inc. (TSXV: SSC), is pleased
to report that Smartcool International Inc., a wholly owned subsidiary of the
Company, has established a new international distributor with the formation of
Smartcool Systems (Israel) Ltd. ("SSI"). SSI has Israeli management that has
vast experience in the high technology and communications industry within
    "Entering the Israeli market is a significant move forward for
Smartcool", states George Burnes, President. "Yet again we have been able to
identify and engage a distribution partner with a wealth of experience within
their market place. The geographical location of Israel makes it a prime
location for Smartcool and our energy reduction technology."
    Chris Lefaivre, V.P. Sales and Marketing added, "Israel's major industry
sectors include electronic and biomedical equipment, food processing,
chemical, high-tech and communications. These are vertical markets that
recognize energy expenditures as one of their top three costs of doing
business. Our ESM(TM) technology can assist companies in these sectors to
achieve their budget controls whilst helping to reduce their carbon
    George Burnes added, "Smartcool is committed to expanding its
international presence. We have a proven technology that has been accepted in
many vertical markets throughout the world and with the creation of a global
distribution network we are creating a solid foundation on which Smartcool
expects to see considerable growth."
    Israel has seen massive investment and over the last ten years with its
economic environment being praised globally. This can be seen by the fact that
Israel now ranks second in foreign companies listed on U.S. stock exchanges.
It's immigration statistics has shown a significant influx of highly educated
immigrants and Newsweek has recognized Tel Aviv as one of the most technically
influential cities in the world with companies such as Intel and Microsoft
have invested in Research and Development centres there.

    About 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

    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

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