SmartCool Systems Inc. - New private placement announced

VANCOUVER, May 31, 2006 -- SmartCool Systems Inc. (TSXV: SSC) (the "Company") is pleased to report that the Company has arranged a non- brokered private placement of up to 1,000,000 units at a price of $0.30 per unit. Each unit will consist of one common share and one share purchase warrant exercisable at a price of $0.50 per share for a period of two years.

The Company also announces that a shareholder of the Company is intending to sell up to 600,000 shares of the Company in the context of the market to a group of investors. The selling shareholder will be participating in the private placement.

The proceeds of this private placement will be used towards payment of the purchase price to acquire the assets of Abbotly Technologies, Inc. announced by the Company on May 30, 2006.

Closing of this private placement is subject to acceptance for filing by the TSX Venture Exchange.

  On behalf of SmartCool Systems Inc.

  George Burnes, President and CEO
  604.669.1388

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.