Thermal Energy receives first order in China for GEM(R) steam traps from Lee and Man Paper Manufacturing Co.



    Asia's premier paper products company outfits large containerboard
    machine with "no-fail" condensate return system

    OTTAWA, Aug. 7 /CNW Telbec/ - Thermal Energy International Inc. (TSX-V:
TMG) (www.thermalenergy.com) is pleased to announce that China's Lee and Man
Paper Manufacturing Co. is moving forward with a conversion to the GEM(R)
Condensate Return System on one of its paper machines.
    This order makes Lee and Man the first company in China to use the GEM(R)
steam trap system on a full production basis. This installation stems from the
trial announced July 11, 2007, which demonstrated the tremendous potential for
steam savings and reduced failures through this unique technology. Lee and Man
will now replace many of the steam traps on one of the company's four large
containerboard machines at its 1 million sq. ft. Hongmei Plant in Guangdong
Province.
    The massive plant opened in 2004 produces over 1.5 million tons of
containerboard annually, making it one of the largest plants of its type in
the world. Lee and Man management will monitor the results as a basis for the
consideration of further conversions of the company's large condensate systems
at its various plants.
    "We are very encouraged by Lee and Man's quick evaluation of the initial
trial and their decision to purchase and install the GEM(R) system to evaluate
its performance on a full production basis," said Thermal Energy president and
CEO Tim Angus. "We look forward to the results of this installation and having
an opportunity to work with Lee and Man on reducing their steam production
costs and other energy saving solutions."
    China represents a multi billion dollar market for condensate return
systems in all industrial sectors and is the fastest growing steam systems
market in the world with high failure rates in many existing traditional steam
systems.
    The GEM(R) Condensate Return System is the first major advancement in
steam trap technology in over 100 years. With no moving parts, the traps are
offered with an unprecedented 10-year, no-fail guarantee and offer up to 50%
savings in the cost of steam production over traditional steam traps, through
reduced leakage and maintenance.

    About Thermal Energy

    Thermal Energy International Inc. is an innovative technology company
providing custom energy and emission reduction, and bioenergy solutions.
Headquartered in Ottawa, Canada, TEI is a designer, design build developer,
fabricator, owner, operator and supplier of proprietary and patented energy
conservation, renewable energy and environmental technology solutions. Thermal
Energy is a fully accredited professional engineering firm, and offers
advanced process and applications engineering services. The Company is a proud
member of the Chicago Climate Exchange (CCX). FLU-ACE(R), Dry-Rex(TM),
THERMALONOx(TM) and THERMALOZOMAx(TM), THERMAL AUD(TM) are trademarks of
Thermal Energy International. GEM(R) is a trademark used under exclusive
license from Gardner Energy Management Ltd.

    For more information about Thermal Energy International Inc. (TSX-V:
TMG), visit our website at www.thermalenergy.com.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    %SEDAR: 00007994E




For further information:

For further information: Stuart McCarthy, Thermal Energy International
Inc., Investor Relations and Communications, (613) 723-6776 x 220,
stuart.mccarthy@thermalenergy.com

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