Smartcool Systems Inc. (TSXV: SSC), is pleased to report that the company had entered into a new distribution agreement with Environmental Energy Solutions ("EES") based in Sydney, Australia. The exclusive distribution agreement covers the territory of Australia and New Zealand. The EES management team not only has intimate knowledge of Smartcool's Energy Savings Module (ESM™), it consists of a group with experience in a multitude of areas that are applicable to the ESM™. This includes Building Service Management, Property Development/Management and Environmental Efficiency Consulting for groups such as telecommunications companies, hospital and local governments.


Subsequent to the signing of the new distribution agreement, EES has entered into a sales arrangement with Ecosave Pty. Ltd. in Sydney, Australia for the purpose of distribution of the Energy Savings Module™. This arrangement has already led to the following testing and subsequent sales of the ESM™ in Sydney, NSW:

  • North Sydney Council, a major local government authority, funded a test site for the ESM(tm) in conjunction with the New South Wales State Government. Both institutions are committed to the reduction of greenhouse gas emissions for both municipal and state government buildings whilst generating significant financial returns. The successful test has now led to the initiation of a rollout throughout other government buildings within Sydney and the state of New South Wales.
  • The EES/Ecosave arrangement also led to the installation of the ESM™ in a 17 storey office building in Sydney's central business district for testing purposes. The building is owned by a major Australian Superannuation Group with a vast portfolio of buildings throughout Australia. The successful test provided suitable cost savings that has led to the development of a rollout program of the ESM™ into other buildings within their portfolio.
  • In conjunction with EES, Ecosave will be installing 7 ESM™ systems into a large shopping centre in Sydney which is owned by one of Australia's most prominent property developers. Upon successful completion of the initial 2 week trial and verification period, commencing in early November 2007, there will be a roll out for a further 8 centres to complete Stage 1 of the energy savings joint venture between Ecosave and EES.

"Management is extremely pleased with the advancements that are being made by Environmental Energy Solutions", comments George Burnes, President. "This is a very important territory for us and the continued growth of our sales through this distribution channel broadens our exposure in an area of the world where energy costs and environmental issues are being addressed with equal importance. The management team that has been assembled has a vast knowledge of this industry and the contacts they have is allowing the ESM™ technology to be presented to the highest levels of management at our potential client base."

About Environmental Energy Solutions:

EES is Smartcool's independent distributor of products in the territory of Australia and New Zealand. The management group has strong technical expertise and is well respected in the energy efficiency/environmental sector. In addition, management has utilized the ESM™ technology in many projects achieving significant energy cost savings for their clients. Having utilized the ESM™ in the past, EES completely understands the technical and marketing requirements to expand the customer base for this energy reduction technology.

EES has committed to an aggressive business plan that addresses the economic and environmental issues facing a variety of vertical markets in their territory. Initial programs have already led to testing and subsequent sales to some of Australia's prominent organizations in a variety of sectors including, but not limited to, supermarkets, cold storage facilities, telecommunications, pharmaceuticals and government.

About Ecosave Pty. Ltd.:

Ecosave is the fastest growing energy and water conservation company in Australia. Established in 2002, Ecosave specializes in lighting and air conditioning energy conservation, as well as all aspects of water conservation for commercial and industrial buildings. With offices in Sydney and Melbourne, Ecosave has helped customers throughout Australia by completing projects in every state, both within capital cities and country areas.

Through its offer of a free site assessment, Ecosave provides potential customers with a list of the energy and water conservation projects that meet the client's financial criteria. Expected savings and costs for the recommended projects are provided in an obligation free proposal. Once a proposal is approved, Ecosave manages all aspects of the installation process to provide the client with energy and/or water savings with no interruption to the client's operations.

About Smartcool

Smartcool Systems Inc. (TSX-V: SSC) delivers cutting edge energy efficiency and cost reduction solutions for businesses around the world. The ESM™ and ECO3™ are Smartcool’s unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems. Energy savings achieved by the ESM™ and ECO3™are quantifiable and the products can qualify for government and utility rebates. The technology has been validatedby rigorous third party testing, government organizations and private business installations.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.


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