Smart Energy Solutions Signs LOI To Acquire 49.9% of Automotive Tier II Supplier Carter Group, Inc.

Acquisition To Expand Reach To Automotive Market & Provide World Class Manufacturing Facility

POMPTON PLAINS, N.J., Aug. 16, 2007 -- Smart Energy Solutions, Inc. (BULLETIN BOARD: SMGY) ("Smart Energy"), inventor and manufacturer of the innovative Battery Brain(TM) vehicle aftermarket device, today announced it has signed a non-binding Letter of Intent providing for its possible acquisition of a minority ownership interest in a wholly-owned subsidiary of the Carter Group, Inc. (www.cartergroup.ca) ("Carter Group"), a Florida Corporation.

Under terms of the Letter of Intent, subject to due diligence, the preparation and execution of a mutually acceptable definitive agreement, approval by both parties, and certain other conditions, Smart Energy would acquire a 49.9% interest in a wholly-owned subsidiary of the Carter Group, Inc. known as 2112376 Ontario Limited. No up front cash payment would be required. Smart Energy is negotiating the final terms of the proposed transaction to be disclosed at a later time. Additionally, if and when such transaction is consummated, Smart Energy would obtain the first right of refusal to acquire the entire ownership interest of 2112376 Ontario Limited and any other assets of the Carter Group, Inc. at a future date.

Carter Group is a world-class manufacturer of electronic HVAC controllers. They are an innovative designer of new technologies, patenting the result and then manufacturing the products to the demanding standards of the automotive industry. Carter Group has built over 9,000,000 Linear Power (LPM) modules for GM cars and trucks over the past five years. They are presently a supplier to Delphi under a multi-year contract that ends in 2010. Their design, technology and rapid response time to their customers' needs will provide Smart Energy with a significant competitive advantage in the worldwide marketplace. Additionally, Carter Group has a Minority Business Enterprise ("MBE") certification, entitling it to serve as a minority supplier to the automotive industry. The acquisition is expected to greatly expand Smart Energy's penetration of the Automotive O.E.M. market. Smart Energy will also begin shifting their production of Battery Brain to the Carter Group upon finalization of the deal. Carter Group currently manufactures under ISO/TS 16949:2002.

"There is a great opportunity and customer demand throughout the OEM and aftermarket for enhanced electronics and this new partnership will enable us to continue to lead this effort," Butch Carter, President and CEO of Carter Group said. "The timing is right. Our team is excited about becoming a more integral part of the Smart Energy Solutions organization and together we will set new levels of capability and dependability across the industry."

According to Pete Mateja, CEO of Smart Energy Solutions, "Carter Group is a leader in developing and supplying automotive electronic HVAC controllers. The expansion of our relationship is an important milestone for our organization. Their ability to design and provide leading edge technologies for automotive customers has provided Carter Group with a significant competitive advantage in the marketplace. This acquisition will assist Smart Energy Solutions in penetrating the O.E.M. automotive market as well as provide a world class manufacturing facility capable of handling SMGY's current needs and future accounts in our sales pipeline."