Thermal Energy International Inc.: $5,000,000 Equity Line of Credit Investment Secured

    OTTAWA--Aug. 6, 2002--Thermal Energy International Inc. (TSX Venture Exchange:TMG) (www.tse-cdnx.com) is pleased to announce that the Company has executed an agreement with Cornell Capital Partners, LP (or CORNELL) that provides the Company with a $5,000,000 Equity Line Of Credit investment. Under the terms of the agreement, Thermal Energy has the right but not the obligation to draw down from under the Equity Line for a term of 24 months. The key benefit of the financing is that Thermal Energy is now assured flexible access to the capital needed for its current and planned operations.
    CORNELL is a US-based private equity fund established in January 2001 to make direct investments in viable and growing small-to-mid-size publicly traded companies. The CORNELL team strives to build long-term relationships with company management. To that end, CORNELL creates tailor-made solutions to meet the company's financial needs and business goals.
    Niko Lahanas, Vice President of Cornell Capital Partners, LP stated, "We take pride in our ability to identify companies with strong management teams, growth potential and competitive advantages. We think Thermal Energy is perfectly situated to leverage its proprietary technology and take advantage of its unique positioning in the marketplace. We look forward to working closely with Thermal Energy's management team in helping the Company realize and execute its full growth potential."
    Tom Hinke, President & CEO, Chairman of Thermal Energy International Inc. stated, "We are very pleased to have secured this Equity Line Of Credit with Cornell, as it enables our company to better focus on implementing our business plans to accelerate growth and profitability. This is great news for both our company and our shareholders."
    The Company acknowledges the efforts of CRESCENT FUND, INC. in facilitating the contact and communications with CORNELL, which led to today's announcement. See the company's related News Release dated June 12, 2002.
    Thermal Energy International Inc. is a leading environmental and energy technology company since 1986. Headquartered in Ottawa, Canada, the Company is an established designer, developer, fabricator, and supplier of Superior proprietary and patented environmental compliance (air) and energy conservation products and technology solutions. The Company is also a fully accredited professional engineering firm, and offers advanced process and applications engineering services. More on Thermal Energy can be found at www.thermalenergy.com. FLU-ACE(R) is a registered trademark of Thermal Energy. Common shares of Thermal Energy are traded on the TSX Venture Exchange (formerly CDNX) under the symbol TMG.
    Cornell Capital Partners LP assume no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise.
    The contents of this release have neither been approved nor disapproved by the TSX Venture Exchange (or TSX).