THERMAL ENERGY RECEIVES PURCHASE ORDERS FROM A MAJOR FOOD MANUFACTURER

OTTAWA, Dec. 23 /CNW/ - Thermal Energy International Inc. (TSX-V: TMG) (www.thermalenergy.com) ("Thermal Energy" or "the company"), is pleased to announce that over the last 4 days it has received purchase orders totaling £374,167 (approximately CDN $584,000) from a major food manufacturer based in the UK, to provide GEM® condensate return systems for use at 5 of its manufacturing sites. The product associated with these orders is expected to be shipped and the revenue recognized over the next 3 months.

The customer manufactures a full range of branded and private label products, from chilled and frozen products through to savoury, cakes and baked products.The GEM® system is being utilized to reduce energy and carbon emissions across one of the food manufacturer's main divisions, as part of their commitment to reducing energy consumption and carbon emissions.

These purchase orders followed 3 months of intensive steam metered trials at one of the division's 12 food manufacturing sites. At the trial site a complete condensate return system was converted over to a GEM® system and metered analysis of both pre and post installation was conducted to verify the energy reduction.

"Thermal Energy has again demonstrated its ability to innovatively support its customers' objectives for energy and emission reductions by delivering a program uniquely tailored to their needs" said Thermal Energy President and CEO William Crossland. "We worked closely with this major food manufacturer to confirm the energy saving capabilities of the GEM® technology thereby allowing the customer to confidently install the GEM® system at a number of sites simultaneously.

About Thermal Energy International Inc.
With offices in Ottawa, Canada and Bristol UK, Thermal Energy International Inc. is an innovative clean technology company providing a variety of proprietary and proven energy efficiency, emission reduction, water efficiency and bioenergy products and solutions to the industrial, commercial and institutional markets worldwide. Thermal Energy's products include; GEM® - Steam traps and condensate return systems, FLU-ACE® - Direct contact condensing heat recovery, and Dry Rex™ - Low temperature biomass drying systems. Thermal Energy International Inc. is also a fully accredited professional engineering firm, and offers advanced process and applications engineering services. FLU-ACE®, GEM®, DRY-REX®, THERMALONOx®, and THERMAL AUD® are trademarks of Thermal Energy International Inc.

To find out more about Thermal Energy International Inc. (TSX-V: TMG), visit our website at http://www.thermalenergy.com.

NOTE: This press release contains forward-looking statements relating to, and amongst other things, based on management's expectations, estimates and projections with respect to, expected agreement on and execution of definitive agreements, timing of installation and implementation, the anticipated effectiveness of the Company's products and services and the revenues to be received by the Company from the project described. Statements with respect to anticipated effectiveness of the Company's products and services are based on studies conducted by the Company and third parties as well as the Company's experience with similar installations for other customers. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, some of which are outside of the Company's control, could cause events and results to differ materially from those stated. The Company disclaims any obligation to publicly update or revise any such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information:

William Crossland
President and CEO
613-723-6776