Waste Heat Recovery System installed at the site.

OTTAWA, (Canada NewsWire via COMTEX News Network) — Thermal Energy International Inc, (TSX-V: TMG) (www.thermalenergy.com) (“Thermal Energy” or the “Company”) is pleased to announce that on June 29th, 2010 Thermal Energy, through its wholly owned subsidiary Forevergreen Energy Inc., signed an arm’s length Greenpower Purchase Agreement with Fortress Specialty Cellulose Inc. (“Fortress Specialty”).

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The agreement is to supply recovered energy to the Fortress Specialty mill in Thurso, Quebec from a FLU-ACE(R) Waste Heat Recovery System installed at the site. The FLU-ACE(R) Waste Heat Recovery System commenced operations and began delivering recovered energy to Fortress Specialty in June 2010. The terms of the green power purchase agreement are effective until December 31, 2012. The agreement may be worth up to $1.8 million based on the estimated amount of waste energy recovered between now and December 31, 2012. In addition after December 31, 2012 Fortress Specialty has an option to extend the agreement for up to a maximum of 24 months on substantially the same terms or purchase the FLU-ACE(R) Waste Heat Recovery System from Thermal Energy for approximately $1 million.

In 2007 the previous owners of the mill contracted Thermal Energy to install a FLU-ACE(R) Waste Heat Recovery System on one of the two existing recovery boilers to generate hot water from recovered waste heat. Thermal Energy delivered the FLU-ACE(R) Waste Heat Recovery System in March 2008 pursuant to an agreement whereby the previous owner would pay Thermal Energy for recovered energy. However in June 2009, as stated in Thermal Energy’s financial reports, the previous owner filed for protection from its creditors under the Companies’ Creditors Arrangement Act and no further payments from the previous owner were received by Thermal Energy. In March 2010 Fortress Specialty announced the acquisition of the Thurso Pulp Mill.

About Thermal Energy

Thermal Energy International Inc. is an innovative cleantech company providing a variety of proprietary and proven energy and water efficiency, emission reduction, and bioenergy products and solutions to the industrial, commercial and institutional markets. Thermal Energy International Inc. is headquartered in Ottawa, Canada, with offices in the UK and in China and sales capabilities worldwide. GEM(R), FLU-ACE(R), DRY-REX(TM), THERMALONOx(TM) and THERMAL-AUD(TM) are trademarks of Thermal Energy International.

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

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.

SOURCE: Thermal Energy International Inc.

William Crossland, Thermal Energy International Inc., (613) 723-6776, bill.crossland@thermalenergy.com