ThermoEnergy Seeks Role in Solving California Energy Crisis

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For Immediate Release

ThermoEnergy Seeks Role in Solving California Energy Crisis

Company's Renewable Energy Process Successfully Demonstrated in Colton

LITTLE ROCK, ARKANSAS, Jun. 19 -/E-Wire/-- Energy problems in the United States, as demonstrated by rolling blackouts and conservation restrictions in the western half of the country, have reached crisis proportions in some areas. In California, the severity of the situation is threatening the entire state economy, leaving citizens, utilities and government officials searching for a solution - with little success. Finding cost-effective and environmentally responsible alternative energy solutions, such as renewable energy, could offer some much-needed relief to California residents and concerned citizens across the country.

ThermoEnergy Corporation (OTCBB:TMEN) recently announced the successful conclusion of the STORS 2000 Demonstration Project sponsored by the United States Environmental Protection Agency. This $3 million project, located in Colton, California (greater Los Angeles area), confirmed the ability of the Sludge-to-Oil Reactor System (STORS) process to convert raw sewage sludge (biosolids) into a high energy fuel known as "biofuel.' STORS systems can form the nucleus for new wastewater treatment plants or as a retrofit for existing plants to produce this high-energy biofuel which can then be converted into electricity on-site and sold at a discount to the local electricity power market.

Water from the STORS system will be further treated by the Company's Ammonia Recovery Process (ARP) which removes nitrogen (ammonia) from the water, converting it to ammonium sulfate, a commercial-grade fertilizer, which can be distributed to agriculture markets around the world. A STORS / ARP biosolids treatment system requires on a fraction of the space necessary for conventional methods - a key factor for large urban areas where additional capacity is desired, but the required space is not available. Combined, STORS and ARP represent a significant advancement over conventional wastewater treatment methods currently used throughout the $150 billion wastewater treatment industry.

Prior to the introduction of this technology, disposing of municipal biosolids (mostly liquid) involved some form of land disposal such as landfilling, composting or land application. For large wastewater plants, this involves thousands of truck trips per-year over many miles to reach disposal sites. Since most municipalities produce only Class B biosolids, this has not boded well for humans living in the vicinity of the deposit sites. Recent warnings from the National Institute for Occupational Safety and Health and the Centers for Disease Control and Prevention indicate that Class B biosolids may contain disease causing organisms in sufficient quantity to warrant restricted public access. Combining high transportation costs with the risk to human health, land disposal methods are proving to be increasingly unpopular and costly solutions.

Some of the many benefits a STORS/ARP renewable energy system offers municipal and industrial wastewater treatment plant operators are: on-site conversion of sewage to EQ Class A commodity products; generation of energy for use on-site or sale to the local market; greatly improved nitrogen removal efficiency; a significant reduction or elimination of odor problems; and significant reduction in traffic to and from existing wastewater facilities. In addition, the STORS/ARP process easily degrades toxic organic materials such as chloroform, Lindane and other similar pesticides, removing them from the discharge stream.

The STORS system virtually pays for capital and operating costs while generating excess energy that can be sold as a useful commodity product. While local conditions can affect biosolids quality and output, large wastewater treatment plants fitted with a STORS system can generate an estimated 10 to 50 megawatts per day in renewable energy. One megawatt has the capability to power 1,000 homes per day. For large treatment plants, this means generating enough energy to power 10,000 to 50,000 homes per day simply by the on-site conversion of a waste product.

"The success of the Colton project proves that the STORS technology can operate as a large-scale treatment facility,' said Dennis Cossey, CEO of ThermoEnergy. "The implications of this success are far-reaching in the grand scheme of the energy crisis. We have found a cost-effective way to use waste to our advantage, giving hope for a new, environmentally safe means of energy production that can decrease our reliance on traditional energy sources.'

Based on the success of the Colton demonstration project, ThermoEnergy is currently teaming with several large wastewater companies to pursue design/build/operate opportunities both in the U.S. and abroad.

THIS PRESS RELEASE INCLUDES STATEMENTS THAT MAY CONSTITUTE "FORWARD LOOKING' STATEMENTS, USUALLY CONTAINING THE WORD "BELIEVE,' "ESTIMATE,' "PROJECT,' "EXPECT' OR SIMILAR EXPRESSIONS. FORWARD LOOKING STATEMENTS INHERENTLY INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE FORWARD LOOKING STATEMENTS. FACTORS THAT WOULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCE INCLUDE, BUT ARE NOT LIMITED TO, CONTINUED ACCEPTANCE OF THE COMPANY'S PRODUCT AND SERVICES IN THE MARKETPLACE, COMPETITIVE FACTORS, CHANGES IN REGULATORY ENVIRONMENTS AND OTHER RISKS DETAILED IN THE COMPANY'S PERIODIC REPORT FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. BY MAKING THESE FORWARD LOOKING STATEMENTS, THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE THESE STATEMENTS FOR REVISIONS OR CHANGES.

ThermoEnergy is a diversified technologies company engaged in the commercialization of patented and/or proprietary municipal and industrial wastewater treatment and power production technologies. Additional information on the Company and its technologies can be found on its Web site at www.thermoenergy.com.

Media note: For further information, or to schedule an interview with a representative from ThermoEnergy, contact Media Relations, Inc. at 800/999-4859.

http://www.thermoenergy.com

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