Sofame Receives PO for Engineering and Expects Bridge Financing

MONTREAL , Jan. 21 /CNW/ - Sofame Technologies Inc. (TSX-V: SDW), a leading manufacturer of environmentally efficient industrial hot water systems and cost efficient heat recovery equipment, has received expressions of interest for an initial tranche of $175,000 of bridge loan financing. Net proceeds of the bridge loan would fund continuing operations and sustain efforts to convert Sofame's sales funnel of industrial energy efficiency projects into confirmed purchase orders.

The bridge loan, which is to be secured by all the assets of Sofame Technologies, shall mature in one year and bear interest at an annual rate of 18 percent to be placed in escrow at the closing. Bonus shares at a deemed issue price of $0.05 per share representing 20% of the loan will be issued to the subscribers. If the initial tranche is completed, a total of 700,000 bonus shares will be issued. A commission of 10% shall be paid in common shares of Sofame Technologies to Notre Dame Capital and other agents. Shares issuable pursuant to the commission will be issued at a deemed issue price of $0.05 per share, for a maximum of 350,000 shares. Closing is subject to certain adjustments to the existing convertible debentures which must be approved by 66 percent of the debenture holders.

According to John Gocek , COO of Sofame, rising natural gas prices are making Sofame's energy-saving technology increasingly attractive as an investment for industrial and institutional customers.

Josh Costell , Executive Vice President and General Manager of Tozour Energy Systems of Philadelphia agreed that market conditions are improving. Tozour has received a purchase order to complete detailed engineering for a Sofame heat recovery project with a global pharmaceuticals manufacturer. The engineering mandate is the last step prior to awarding a turn-key contract utilizing Sofame's equipment which would be installed during the summer of 2010.

Sofame has confirmed its presence at the AHR Expo in Orlando , Florida, from January 25th to 27th and looks forward to meeting its existing and future clients at this major HVAC industry event. Sofame is also meeting with its local rep firms at the show to sharpen sales tactics in the face of improving economic conditions. Clients and interested parties should contact Sofame for more detailed information.

About Sofame

Sofame Technologies Inc. custom engineers and manufactures unique, high-efficiency direct-contact industrial hot water systems which extract up to 99 percent of heat from flue gases depending on the application, and return the energy in the form of high-temperature hot water or pre-heated make-up air. Sofame's products help hospitals, food processing plants, universities, central heating plants, utilities and many more large energy consumers to significantly reduce fuel costs and greenhouse gas emissions. Using world-leading, patented green technology, Sofame serves industrial, institutional and commercial markets through a network of dedicated engineering representatives. For more information, visit www.sofame.com.

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For further information: Stone Communication Services: Brian Edelstein, [phone], [email protected], www.stoneco.com