Microheat, Inc. Raises $14 Million in Private Placement; Oppenheimer & Company, Inc. Acts As Exclusive Placement Agent

FARMINGTON HILLS, Mich.--March 8, 2005--Microheat Inc. has announced the completion of its Series C Preferred Stock Financing round of $14 million in private placement led by Oppenheimer & Company, Inc. Microheat, http://www.microheat.com , is the world leader in advanced heated fluid technologies and Tier 1 supplier of the revolutionary HotShot(R), http://www.HotShot.com , windshield clearing and de-icing system to the automotive industry. To date, financing through private placements totals over $40 million.

The lead investor in this financing round was Mr. Joseph Willey, majority owner of Pro-Cut, LLC of New Hampshire, http://www.procutinternational.com , the largest supplier of brake lathes to the automotive industry. Following the closing, Mr. Jeff Hastings, President of Pro-Cut, will join Microheat's board of directors and will act as a strategic advisor and consultant for OEM and aftermarket activities.

"The success of this financing round reflects a high degree of investor and industry confidence in Microheat's future and comes at a landmark time in OEM and aftermarket acceptance of our advanced HotShot technology," said Peter Neustadter, Microheat's chairman. "General Motors will offer HotShot as a feature on the Cadillac DTS and Buick Lucerne 2006 models, which they are displaying at the Chicago, Cleveland and New York Automotive Shows, and will receive our first shipment on March 22. In addition, an OEM in Asia has signed an agreement, and now over 20 manufacturers are considering integrating HotShot in their vehicles."

According to Microheat CEO Gary Pilibosian, net proceeds will be used to accelerate the company's already high growth rate and business in the OEM and aftermarket segments. "We are highly focused on optimizing our manufacturing capabilities, R&D, worldwide distribution channels and the OEM business," he explained. Last fall, Microheat signed an exclusive distribution agreement with Webasto, the world leader in aftermarket distribution/installation, which brings HotShot to 50 countries including every major automotive market and to more than 700 million used vehicles.

"Microheat's advanced heated fluid technology offers maximum comfort, convenience and safety for drivers and total customer satisfaction," said Mr. Pilibosian. "People will remember HotShot as the technology that made ice scrapers obsolete," he said. "Additional applications for clearing headlamps, radar and rear windshields will be announced in the near future. Breakthrough applications featuring our core technology for other industries will be coming later in the year." Microheat has been awarded 4 patents and has filed 27 international patent applications.

For more information on Microheat and to download high resolution images of HotShot, please visit http://www.microheat.com .