SmartCool International Receives First Equipment Order

VANCOUVER, July 27 -- SmartCool Systems Inc. (TSXV: SSC), an advanced energy savings technology company, is pleased to announce that its wholly-owned subsidiary, SmartCool International Inc. has received its first order for the System 4000 Energy Saving Module (ESM); technology obtained through the company's June 30th acquisition of Abbotly Technologies Pty Ltd. of Australia.

SmartCool International will make its first sale to its UK distributor, TECC Services Ltd. (TECC), who will use the ESM as part of a potential large roll-out with a major Spanish client. The ESM, which is specifically designed to reduce electricity consumption, and maximize the efficiency of refrigeration and air conditioning compressors by improving their performance and maintaining temperature control, will be used by TECC in an initial installation to verify the level of energy savings, with a larger roll-out expected once the evaluation has been completed. It is expected that the client will authorize a larger roll-out starting in Q4 2006.

"We are very excited by the industry's response to the ESM 4000 and thrilled to see our recent acquisition providing SmartCool Systems with immediate revenue," says George Burnes, President and CEO of SmartCool Systems Inc. "TECC has had great success introducing the ESM to large corporate clients such as Tesco Supermarkets, Apple Computers and Marks & Spencer. SmartCool looks forward to working with TECC, and other distributors, to increase world-wide use of this energy-efficient and environmentally-friendly technology.

About SmartCool Systems:

SmartCool Systems Inc. is an advanced energy savings solutions company specializing in energy and cost reduction technologies for commercial and retail businesses. The company's wholly owned subsidiary, SmartCool International Inc., is the owner, developer, manufacturer and worldwide distributor of the System 4000 Energy Saving Module (ESM)(R). This green technology reduces the electricity consumption (KWH) and maximum demand (KW) of air conditioning and refrigeration compressors. Rather than replacing existing equipment, the ESM 4000 works in conjunction with existing controls in order to ensure that compressors work at maximum efficiency, while maintaining preset temperature levels and without causing over-cycling.

Rising global energy demand is resulting in significant increases in energy prices. Environmental concerns are causing both government and industry to re-examine the way they do business. SmartCool provides companies with solutions to address the growing pressure to reduce energy costs, increase profits and reduce green house gas emissions.

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