Thermodynetics Reports a Continuation of Solid Business Levels

WINDSOR, Conn.--Aug. 1, 20035, 2003--Thermodynetics, Inc. (OTCBB:TDYN), announced that net sales for the three months ended June 30, 2003 and 2002 totaled $3.0 million. This year's first quarter sales continued the seasonal trend of recent years where certain markets (led by residential water source heat pump applications) have strong requirements for products in the spring months in order to meet inventory stocking requirements for the primary building season. This core business, spurred by new housing starts in many regions of the US, continues to grow. Other markets, notably boiler tubing applications, commercial ice machines and swimming pool heat pumps, also exhibited strong sales during the first fiscal quarter.

Gross profit margins improved significantly in the current period versus the same period last year (30% vs. 26% of net sales). The current product mix featuring coaxial coil applications with higher engineering and value added content, generated higher contribution margins and more efficient absorption of manufacturing costs. In addition, more favorable pricing from certain large suppliers reduced the cost of materials.

Selling, general and administrative expenses increased by $107,000 year to year. Sales application engineering, customer support and quality engineering functions were filled during the later stages of the 2003 fiscal year. Further additions to the marketing and engineering staff are planned.

Income before income taxes for the three months ended June 30, 2003 was $204,000 or 7% of net sales as compared to $150,000 or 5% of net sales for the prior year period. First quarter earnings per share were $.01 for both years computed on both a basic and fully diluted basis.

In August 2003 the Company purchased Vulcan Industries, a manufacturer of fabricated metal tubing products serving the automotive, furniture and appliance industries. The purchase was financed with a combination of cash, term and revolving debt from the Company's primary lender and notes payable to the selling shareholders. It is anticipated that the positive operational contributions of Vulcan will begin to be reflected during the next fiscal year beginning April 2004.

FORWARD LOOKING STATEMENTS

This quarterly report contains certain forward-looking statements regarding the Company, its business prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause the Company's actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Factors that may affect such forward-looking statements include, without limitation: the Company's ability to successfully and timely develop and finance new projects, the impact of competition on the Company's revenues, and changes in unit prices, supply and demand for the Company's tubing product line especially in applications serving the commercial, industrial and residential construction industries.

When used, words such as "believes," "anticipates," "expects," "continue," "may," "plan," "predict," "should," "will," "intends" and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. The Company undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. Readers are urged to carefully review and consider the various disclosures made by the Company in this report, news releases, and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect the Company's business.

                                        Three Months Ended June 30,
                                          2003               2002

Net Sales                              $3,013,267         $ 3,047,913
Operating Income                       $  285,818         $   254,667
Net Income                             $  154,260         $   149,815
Comprehensive Income                   $  154,260         $   149,815
Weighted Shares Outstanding-Basic      18,226,178          17,883,076
Weighted Shares Outstanding-Diluted    18,226,178          17,993,884
Earnings Per Share-Basic                     $.01                $.01
Earnings Per Share-Diluted                   $.01                $.01

Thermodynetics, Inc. through its wholly owned subsidiaries Turbotec Products, Inc. and Vulcan Industries, Inc. has been engaged in the manufacture of metal tubing and tubing assemblies to the heating, ventilation, air conditioning, refrigeration, automotive and other industries since 1972. Thermodynetics and its subsidiaries are a world leader in enhanced heat transfer technology and is a preferred supplier to the automotive industry. The Company offers tubing products supporting a wide array of heat transfer needs, including surface-enhanced tubing, single and double walled coaxial condensers and evaporators and heat recovery systems. These tubing products provide high energy efficiencies for applications in the biomedical, aerospace, boiler, marine, food and beverage, refrigeration and residential/commercial heating and cooling industries. The automotive applications are centered on high production needs for engine exhaust components, suspension and filler tubes and other support tubing for frames and subassemblies.