$213,200 Loaned to Thermal Energy by President & CEO, And Founder to be Reimbursed Through Issuance of Flow Through Shares for Debt

    OTTAWA--Sept. 23, 2002--Thermal Energy International Inc. (TSX Venture:TMG) (www.tse-cdnx.com) is pleased to announce the approval of a proposed Flow Through Shares For Debt Settlement agreement to reimburse $213,200 of loans provided during the 4th quarter ending August 31st, 2002 by Company President & CEO, and founder Thomas V. Hinke.
    The $213,200 debt will be retired through the issuance of 1,332,500 common flow through shares at a price of $0.16 per share to Mr. Hinke, with the new shares to be restricted from trading for a minimum of six (6) months.
    "The Company's board of directors, management, and employees very much appreciate the personal sacrifice and extra support provided by Mr. Hinke in assisting the temporary financing of Company operations," says Corporate Secretary, Gustav Pliva, PhD, PMP.
    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.
    The contents of this release have neither been approved nor disapproved by the TSX Venture Exchange (or TSE-CDNX).