SmartCool International Announces Positive Results from Target Australia Evaluation

VANCOUVER, Aug. 10, 2006 -- SmartCool Systems Inc. (TSXV: SSC) today announced savings results from the first two of a five-store pilot evaluation of its System 4000 Energy Saving Module ("ESM") with retail giant, Target Australia Pty. Ltd. ("Target Australia").

The evaluation, which is being conducted by the Company's Australian distributor, Abbotly Technologies Australia Pty Ltd., and paid for by Target Australia, revealed a 30 per cent reduction in KWH usage at Target's St. Mary's store in Sydney, Australia and a 38 per cent reduction at the Burwood store, also in Sydney. The savings provided by the ESM, which is specifically designed to reduce electricity consumption, and maximize the efficiency of refrigeration and air conditioning compressors by improving their performance while maintaining temperature control, has provided Target Australia with a pay back of less than 36 months on their capital investment.

"We are extremely pleased to see our Australian distributor achieving such positive test results from this pilot evaluation," says George Burnes, President and CEO of SmartCool. "The success of the ESM in Target Australia's stores proves its huge potential to save our clients money and earn significant revenues for SmartCool."

Target Australia is owned by Coles Myer - one of Australia's largest retailers with more than 2,600 stores operating under the brands Target, K-Mart, Coles Supermarkets, Coles Express, Bi Lo Supermarkets, Pick 'n Pay Hypermarkets, Officeworks and Liquor Land. Based on the savings results of the pilot evaluation, SmartCool expects to roll out the ESM in 300 Target stores throughout Australia.

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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