Smartcool generates sales through new Australian distribution channel

    VANCOUVER, Oct. 30 /CNW/ - Smartcool Systems Inc. (TSXV: SSC), is pleased
to report that the company has entered into a new distribution agreement with
Environmental Energy Solutions ("EES") based in Sydney, Australia. The
exclusive distribution agreement covers the territory of Australia and New
Zealand. The EES management team not only has intimate knowledge of
Smartcool's Energy Savings Module (ESM(TM)), it consists of a group with
experience in a multitude of areas that are applicable to the ESM(TM). This
includes Building Service Management, Property Development/Management and
Environmental Efficiency Consulting for groups such as telecommunications
companies, hospital and local governments.
    Subsequent to the signing of the new distribution agreement, EES has
entered into a sales arrangement with Ecosave Pty. Ltd. in Sydney, Australia
for the purpose of distribution of the Energy Savings Module(TM). This
arrangement has already led to the following testing and subsequent sales of
the ESM(TM) in Sydney, NSW;

      -   North Sydney Council, a major local government authority, funded a
          test site for the ESM(TM) in conjunction with the New South Wales
          State Government. Both institutions are committed to the reduction
          of greenhouse gas emissions for both municipal and state government
          buildings whilst generating significant financial returns. The
          successful test has now led to the initiation of a rollout
          throughout other government buildings within Sydney and the state
          of New South Wales.

      -   The EES/Ecosave arrangement also led to the installation of the
          ESM(TM) in a 17 storey office building in Sydney's central business
          district for testing purposes. The building is owned by a major
          Australian Superannuation Group with a vast portfolio of buildings
          throughout Australia. The successful test provided suitable cost
          savings that has led to the development of a rollout program of the
          ESM(TM) into other buildings within their portfolio.

      -   In conjunction with EES, Ecosave will be installing 7 ESM(TM)
          systems into a large shopping centre in Sydney which is owned by
          one of Australia's most prominent property developers. Upon
          successful completion of the initial 2 week trial and verification
          period, commencing in early November 2007, there will be a roll out
          for a further 8 centres to complete Stage 1 of the energy savings
          joint venture between Ecosave and EES.

    "Management is extremely pleased with the advancements that are being
made by Environmental Energy Solutions", comments George Burnes, President.
"This is a very important territory for us and the continued growth of our
sales through this distribution channel broadens our exposure in an area of
the world where energy costs and environmental issues are being addressed with
equal importance. The management team that has been assembled has a vast
knowledge of this industry and the contacts they have are allowing the ESM(TM)
technology to be presented to the highest levels of management at our
potential client base."

    About Environmental Energy Solutions:

    EES is Smartcool's independent distributor of products in the territory
of Australia and New Zealand. The management group has strong technical
expertise and is well respected in the energy efficiency/environmental sector.
In addition, management has utilized the ESM(TM) technology in many projects
achieving significant energy cost savings for their clients. Having utilized
the ESM(TM) in the past, EES completely understands the technical and
marketing requirements to expand the customer base for this energy reduction
    EES has committed to an aggressive business plan that addresses the
economic and environmental issues facing a variety of vertical markets in
their territory. Initial programs have already led to testing and subsequent
sales to some of Australia's prominent organizations in a variety of sectors
including, but not limited to, supermarkets, cold storage facilities,
telecommunications, pharmaceuticals and government.

    About Ecosave Pty. Ltd.:

    Ecosave is the fastest growing energy and water conservation company in
Australia. Established in 2002, Ecosave specializes in lighting and air
conditioning energy conservation, as well as all aspects of water conservation
for commercial and industrial buildings. With offices in Sydney and Melbourne,
Ecosave has helped customers throughout Australia by completing projects in
every state, both within capital cities and country areas.
    Through its offer of a free site assessment, Ecosave provides potential
customers with a list of the energy and water conservation projects that meet
the client's financial criteria. Expected savings and costs for the
recommended projects are provided in an obligation free proposal. Once a
proposal is approved, Ecosave manages all aspects of the installation process
to provide the client with energy and/or water savings with no interruption to
the client's operations.

    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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