George Burnes, President of Smartcool Systems Inc., states, "We are very pleased to have successfully concluded this negotiation with the Vendors of Smartcool Systems UK Ltd. and Smartcool Systems EMEA Ltd., as this has increased shareholder equity by approximately $2,393,128. With this agreement in place, we are looking forward to starting a new and positive phase of growth for the company in the new year."

The Settlement is subject to approval by the TSX Venture Exchange.

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

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world. The ECO3 and ESM are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by 15% to 20%, giving customers a return on investment in 12 to 36 months.

The agreement marks a milestone for Smartcool, as it demonstrates the evolution of a distribution relationship into one that offers new opportunity for growth for both parties. SmartACR has been a Smartcool distribution partner since May 2012 experiencing rapid success with Smartcool's technology and this is expected to escalate moving forwards.

Additional information on the development of these new products incorporating Smartcool's proprietary software algorithms will be released as events progress.

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

About SmartACR
SmartACR is an independent distributor of Smartcool's ECO3 & ESM and a licensee of Smartcool's compressor optimization software algorithms in the USA. Operating out of offices in Boston and Houston, SmartACR is focused on developing and delivering energy efficiency solutions for air conditioning and refrigeration systems. www.smartacr.com

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world. The ECO3 and ESM are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by 15% to 20%, giving customers a return on investment in 12 to 36 months.

"Smartcool has responded to radically increasing demand from tropical regions like the Caribbean by bringing on local partners in focused industry and geographic markets," explains Chris Lefaivre, Smartcool's VP of Operations. "This is the most efficient use of our technical resources in training and supporting new partners, allowing us to expand our potential revenue sources. It also offers new distributors the greatest chance of success as they dive into market verticals where we have a long history of great results and a depth of experience on which they can draw."

Smartcool's new Caribbean distribution partners include:
• Caribbean Supply Direct Corp. in Puerto Rico
• Caribbean Energy Savings, also in Puerto Rico
• Efficiency Systems Ltd. in Jamaica
• Utility Saving Solutions in the Bahamas & the Dominican Republic

Feature Project
Smartcool's partners have launched a number of new projects in recent months, delivering energy savings to new customers in their own markets. An example of typical results comes from a Utility Saving Solutions project in the Bahamas. At the Green Turtle Club Resort & Marina, the ECO3 was installed on the air conditioning systems in a number of buildings.

"The rising cost of energy is our number one operating expense in the Caribbean," says Adam Showell, the owner of Green Turtle Club Resort. "Reducing these costs is a key strategy to our long term success; energy efficiency has become our primary tactic and the ECO3 is the cornerstone of our plans. Utility Savings Solutions reduced our monthly electric bills by up to $5,450, which is a 25% - 30% reduction in our electricity costs. This makes the ECO3 project our most successful cost saving endeavor to date."

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

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world. The ECO3 and ESM are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by 15% to 20%, giving customers a return on investment in 12 to 36 months.

ESS Mexico is an energy conservation technology solution integrator focusing its efforts on the supermarket, cold storage and retail market verticals.  This mirrors Smartcool's traditional target verticals, giving ESS Mexico the advantage of drawing on a wealth of experience Smartcool has won in these sectors with customers like Sainsbury's, Tesco and Olympic Fruit & Vegetable among others. To date ESS' primary applications for the ECO3 have been on the rooftop air conditioning systems of a major Mexican retailer with whom ESS has just started a national roll out.

Lider Control y Automatización is an engineering firm with 20 years of experience developing and implementing inter-disciplinary technology solutions for automation, control and IT.  Lider's initial focus has been on optimizing the performance of cooling systems in restaurants, banks and select retailers.  These are also industries in which Smartcool has delivered strong energy saving results to customers like McDonald's, National Australia Bank and Westpac. Lider is currently engaged in several initial deployments with large national chains as a part of a capital budget approval process in advance of nationwide roll outs across Mexico.

"We are thrilled to have two new strong distribution partners coming on board in Mexico," says George Burnes, President& CEO of Smartcool.  "Our support infrastructure for our distribution partners continues to grow, allowing us to help new channel partners like ESS and Lider get up and running with our ECO3 quickly.  Our many years of experience in distribution sales working with a diverse array of channel partners, has allowed us to develop and refine a process of best practices that put new partners on a path to financial success.  This ensures repeat orders and recurring revenues for Smartcool. "

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

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world.  The ECO3 and ESM are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by 15% to 20%, giving customers a return on investment in 12 to 36 months.

"Independent verification showed that we were achieving energy savings of 14.8% of the total electricity used by the facility, without any disruption to 'business as usual' for Traditional Breads.  These superb results were the basis for our application to receive a rebate against the cost of the project to our customer," explains Paul Gregory, CEO of SmartACR.

Veris power meters were installed to monitor the energy consumption of the compressors in the cooling systems. Data was collected and analyzed using Obvius Acquisuite data loggers, confirming that the ECO3 and ESM were actively saving energy without any impact on temperature or humidity conditions.  This data gave SmartACR the proof of energy savings it required to pursue substantial rebates from the utility.

"National Grid is one of the largest investor-owned energy companies in the world, and we are excited to have our products recognized as effective energy saving measures by a utility of this stature," says George Burnes, President and CEO of Smartcool.  "Our typical projects achieve a return on investment in 12 to 36 months; the capacity to win rebates from utilities can shorten this payback period significantly.  This helps Smartcool's products retain a competitive edge, particularly in an economic climate where large capital expenditures may still not be possible for many businesses."

"The project proposal from SmartACR was compelling, both from a financial perspective and in its ability to help us reduce our carbon footprint," says Fitzroy Alexander, President of Traditional Breads.  "The fact that we have received a substantial rebate from National Grid for this project reaffirms our belief that the installation of Smartcool products by SmartACR has been one of the smartest energy saving measures we could have taken, and we are seeing an immediate and significant financial benefit."

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

About SmartACR
SmartACR is an independent distributor of Smartcool's ECO3 and ESM in the USA.  Operating out of offices in Boston, Massachusetts and Houston, Texas, SmartACR is focused on the development and delivery of energy efficiency products for commercial and industrial air conditioning and refrigeration systems. www.smartacr.com 

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world.  The ECO3 and ESM are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by 15% to 20%, giving customers a return on investment in 12 to 36 months.

Smartcool Australia is providing the corporation with energy savings of 2,802,981 kWh across the 350 facilities where Smartcool technology has been installed to date.

"Having a major government corporation embrace our technology as one of the key solutions to their energy consumption issue is a major step for Smartcool," explains George Burnes, President & CEO of Smartcool Systems Inc.  "The project demonstrates that our technology is a great fit with any air conditioning system in a wide range of facilities with dramatically different conditions.  It is also yet another example of how we have the capability to help major corporations around the world achieve their energy efficiency goals and green mandates with our tried, tested and proven technology."

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

About Smartcool
Smartcool Systems Australia Ltd. is a privately owned company, holding exclusive distribution rights throughout Australia and New Zealand from Smartcool Systems Inc. for the ESM™.  Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy 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, with no risk to existing equipment performance.  www.smartcool.net 

This year we have begun introducing the ECO3 product to convenience and gas station stores, saving energy on their smaller refrigeration, air conditioning and/or heat pump systems. Providing our customers with the product mix of both ESM and ECO3 expands the overall energy savings we can deliver across a blended portfolio of facilities. This tactic puts Smartcool in a strong competitive position, making us an attractive energy saving partner to large retail customers looking to cut energy costs across a variety of facilities.

Our success with Sainsbury’s over the last number of years as a participant in their Energy Reset programs has given us a wealth of case study documentation that is supporting our initiatives with five additional retailers in the UK. For Sainsbury’s we have consistently been in the top three service and product providers reducing the company’s energy consumption. This gives us a strong position from which to begin work with the other retailers, some of whom have even larger portfolios than Sainsbury’s.

Developing these major new customer accounts is achieving our goal of revenue diversification, and gives us a strong base for sustainable growth.

Distribution
Leveraging the knowledge gained by the UK team has allowed our distributors to also secure major retail customers in the USA, Mexico, Central America, and south east Asia.   Smartcool has developed online technical support and a secure web portal for distributors where they can access documentation, allowing scalability of growth in this area.

Smartcool’s ECO3 targets the hundreds of millions of single and dual compressor refrigeration, air conditioning and heat pump systems installed both in commercial and residential sites worldwide. To date, tens of thousand of ECO3 units have been installed by distributors as the key sales channel. This demonstrates not only the value of distribution as a growing source of revenue, but also the ease of expansion through the development of new relationships. Smartcool’s distribution network continues to grow across existing markets and further afield into new markets.

Product Development
Smartcool has identified another path to market this year for our proprietary software. The potential to license the use of our algorithm to developers of other form factors such as digital thermostats, has a large potential for revenue generation with minimal costs to Smartcool. Integrating our software or hardware platforms with refrigeration or air conditioning equipment, accelerates the speed of deployment of our technology. This can be done remotely using wireless protocols or through third party installation and service organizations. We are actively pursuing this option.

Profitability
Not only is Smartcool seeking new customers and new sources of revenue to leverage our proven technology, we are also identifying ways of reducing operating costs on our path to profitability. We have sourced new supply chains to improve gross margins on production and have renegotiated existing cost structures wherever possible. We believe we can improve product margins by 15%. We have also reduced our operating costs by approximately 30% this year.

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

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world.  The ECO3 and ESM are Smartcool’s unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by 15% to 20%, giving customers a return on investment in 12 to 36 months.

For further information

EMAIL mk.trilliumfinancial@gmail.com

 USA Office                                               UK Office                                                  Canada Office   
TEL +1 866 571 6554                    TEL +44 1420 544868                  TEL +1 604 904 8632

Smartcool’s ECO3 saves an average 20% kWh on compressor operation in air conditioning and refrigeration systems.  For customers with high electrical rates and high demand for cooling, this can represent a substantial reduction to their utility bills.

Guyana is subject to high electrical rates, in the range of $0.27/kWh for residential and $0.35/kWh for commercial customers.  With a hot Caribbean climate, the demand for air conditioning is also very high.  These factors make Guyana a natural fit for Smartcool’s ECO3, and SPR Enterprises is poised to deliver the product to a market primed for energy efficiency products. 

“Introducing the ECO3 to our market fits perfectly in our core strategy of providing our customers with top quality electrical products,” explains Scotty Ramroop, Managing Director at SPR Enterprises. “In this case, we have not only chosen a high quality product but also one which will help our customers dramatically reduce their electrical bills through greater air conditioning and refrigeration energy efficiency.  The ECO3 will give us yet another advantage and provide the basis for further growth and increased revenue.”

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

About SPR Enterprises
SPR Enterprises offers electrical products from the most proficient manufacturers in North America; our product line consists of more than 1,000 items to satisfy domestic, commercial and industrial electrical applications.  

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) is a publicly listed Canadian company, providing cutting edge energy efficient and energy cost reduction solutions for businesses around the world.  The ECO3 and ESM are Smartcool’s unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by 15% to 20%, giving customers a return on investment in 12 to 36 months. 

Smartcool is pleased to present some recent highlights:

·  Very successful second year as Primary Contractor for Sainsbury's, delivering the ESM and refrigeration energy efficiency project management services directly and through other contractors to approximately 40 supermarkets across the UK.

·  Introduced the ECO3 to Sainsbury's Petro Filing Stations which opens a portion of their portfolio not previously addressed.

·  Continued successful installations with companies like Jaguar Land Rover, Network Rail and Warburton's in the UK.

·  Continued success in Australia with Smartcool's top distributor carrying out a number of national roll-outs to customers in government and the banking sector.

·  Completed a number of roll-outs to major European customers in the food retail sector in the Poland, France, Spain and Portugal.

·  Laid the groundwork for a number of roll-outs to begin in 2013 to European telecommunications, food retail and franchise companies.

·  New distribution agreements signed to deliver Smartcool products to customers in Italy, Pakistan, Germany, Nicaragua and France and saw continued sales in South Africa, Malta and the Middle East.

·  Continued development of a strong North American distribution network, with new ECO3 distributors providing the product to end customers across the region.

·  Implemented the North American ECO3 distribution model into the UK, successfully bringing on new distributors to deliver the product to the commercial market of small to medium sized enterprises.

·  Considerable work done to streamline internal business processes, maximizing efficiency while reducing operating costs.

With these positive developments and gathering momentum in the early part of this year, Smartcool is looking forward to a busy and successful 2013.

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

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world.  The ECO3 and ESM are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by 15% to 20%, giving customers a return on investment in 12 to 36 months.

Smartcool's application for safecontractor accreditation was driven by the need for a uniform standard across the business. Achieving this highly respected certification will enhance the company's ability to attract new contracts from leading UK firms who only work with contractors with this level of qualification.

"We are thrilled to have been awarded the safecontractor certificate," says Steven Martin, Executive VP of Smartcool. "This not only gives our existing customers an added level of comfort in working with us, but will also give us a competitive edge in approaching major new accounts across the UK."

"Major organizations simply cannot afford to run the risk of employing contractors who are not able to prove that they have sound health and safety policies in place," adds John Kinge, Technical Director of safecontractor. "More companies need to understand the importance of adopting good risk management in the way that Smartcool has done. The company's high standard has set an example which hopefully will be followed by other companies within the sector."

Under the safecontractor scheme, businesses undergo a rigorous review process which examines health and safety procedures and their track record for safe practice. Those companies meeting the high standard are included in a database for clients.

Over 170 major national businesses from several key sectors have signed up to use the scheme when selecting contractors for services including electrical and mechanical work. These clients use the database to vet potential contractors before they even set foot on site, and will only engage contractors who have received safecontractor accreditation.

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

About Smartcool
Smartcool Systems UK Ltd. is a wholly owned subsidiary of the Canadian company Smartcool Systems Inc. (TSX-V: SSC). Smartcool provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world. The ECO3 and ESM are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by 15% to 20%, giving customers a return on investment in 12 to 36 months.

The highlight of Smartcool's third quarter was the strengthening of its relationship with Sainsbury's as a Primary Contractor for the UK supermarket group's refrigeration energy efficiency project, Reset 6. This contract is in its second full year, and the food retailer continues to devote more capital directly to Smartcool as a Primary Contractor and indirectly through other contractors who have purchased Smartcool's products for installation in their own allotment of Reset 6 supermarkets.

In addition to Smartcool's work for Sainsbury's supermarkets, Smartcool began a roll-out of its ECO3™ to the smaller refrigeration systems in Sainsbury's Petrol Filling Stations (PFS). This work began in the third quarter and will accelerate through 2013.

The roll-out of the ECO3™ to Sainsbury's PFS is significant not only for the expected revenue but also since it introduces the product to the UK market which has previously focused almost exclusively on the ESM™.

Likewise, Smartcool has not previously pursued distribution partners for the UK, but has recently begun a recruitment drive for a small group of highly qualified ECO3™ distributors across the country.  This is building on the model developed successfully in the USA.  Building a distribution network in the UK gives Smartcool the opportunity to deliver the ECO3™ to a market that is already familiar with the Smartcool brand and the benefits of its ESM™ product.

Smartcool continues to develop major new accounts in the UK and Europe, primarily with food retailers where the company's expertise continues to deliver unparalleled energy efficiency results.  This market vertical also has budget dedicated to energy efficiency projects, particularly for refrigeration, as this is a major operating expense that can easily be reduced with Smartcool's technology.

The distribution network in the USA continues to expand, as Smartcool builds upon its success with ECO3™ distributors in Florida.  The company is now working with a number of successful distributors in the Northeast, Arizona and into Mexico and Central America.  The launch of Smartcool's dedicated ECO3™ website at www.smartcooleco3.com and a new telemarketing campaign, has increased the visibility of the product to this market where momentum continues to build.

The full Statements and MD&A are available on Sedar and on Smartcool's website: http://www.smartcool.net/investors/financial-statements

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

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world.  The ECO3 and ESM are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems, with no risk to existing equipment performance.  www.smartcool.net and www.smartcooleco3.com

Recruitment is under way for distributors, particularly in the USA and Europe. Learn more about the ECO3 distribution opportunity here.

George Burnes, President and CEO of Smartcool puts the ECO3 Energy Evolution in perspective. “We live in a world of rising energy prices, a troubled economy, and an environment in crisis. These are big problems, ones that require multiple solutions that we already have available to help us adapt to the ‘new normal’. Smartcool’s ECO3 is one of these solutions. It can make a real difference in cutting energy consumption by systems that traditionally waste a huge amount of energy through inefficiency.”

Mr. Burnes explains the connection between energy, money and the environment, and how Smartcool’s ECO3 fits in. “By reducing how much energy is used by air conditioning, refrigeration and heat pump systems, the ECO3 also saves customers money by lowering their utility bills. As an added bonus, the money saved on lower utility bills gives customers a return on their purchase of the ECO3 in as little as 12 months.   Every kilowatt saved by the ECO3 through improved energy efficiency, is one that does not need to be generated- and this helps reduce the amount of carbon emitted by fossil fueled power plants. We are proud to give customers a product that can make a very real difference to their wallets, their communities and the planet.”

Learn more about Smartcool’s ECO3 and the Energy Evolution here.

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

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world.  The ECO3 and ESM are Smartcool’s unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems, with no risk to existing equipment performance. www.smartcool.net and www.smartcooleco3.com

Cooling is a mission-critical factor for data centers, meaning that any variation in temperature could have a profound negative impact on the business. Data centers typically see more than 50% of their operating costs consumed by air conditioning, critical to keeping the IT equipment cool enough to function properly. Smartcool's ECO3 increased the energy efficiency of Internet Solutions' air conditioning while maintaining the required temperature settings.

This energy project was managed by Tilt Cool Tech, Smartcool's independent distributor in South Africa. Tim Stephens, the Technical Manager at Tilt said, "We are very pleased with the energy savings we achieved for Internet Solutions using the ECO3. Energy consumption is a major concern in South Africa due to problems in supply and rapidly rising costs. Providing our customers with a product like the ECO3 that delivers reliable, significant energy savings gives us a huge advantage in the market."

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

Tilt is a family owned business established in 2009 and built on a foundation of cooling controls expertise. Since becoming a Smartcool distributor, Tilt has achieved a great deal of success in various sectors of the South African market with clients like Internet Solutions, Spar, Waltloo Meat & Chicken and other companies in the food logistics and mining sectors.

About Smartcool

Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy 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, with no risk to existing equipment performance.www.smartcool.net

Direct sales were focused largely in UK and Europe, and Smartcool delivered rollouts to a number of Fortune 500 clients which represented 52% of 2011 revenue up 25% from previous year. Most significantly in 2011, Smartcool was named a Primary Contractor for Sainsbury’s to deliver not only its own products but also other energy efficiency solutions to the UK retailer’s refrigeration systems. Smartcool has been re-confirmed in 2012 to continue in this role for Sainsbury’s budget year, providing continued visibility to their estate of stores with the expectation that revenue from this account will increase by 125% from 2011.

Installation and successful pilots with other European retailers in 2011 will provide diversification of revenue sources and growth in 2012. As an example, discussions are under way currently for a rollout with a Regional Eastern Europe Retailer whereby export development financing will secure the capital necessary for installation in more than 50 stores. This opportunity alone will increase 2012 revenues by 50% within the European market sector from 2011.

Distribution sales for Smartcool’s ECO3 experienced growth in the USA, up 118% from 2010, as the company identified new, smaller distributors
in target states like Florida, California and the mid-West. This base of dealers is ideally positioned to deliver Smartcool’s simpler product to the mass residential and small business market with expectation of continued growth of 100% over 2011.

Smartcool also added two new ESM distributors in Europe and has created infrastructure under the Director of Distributor Support to produce steady, recurring revenue for the company. The minimum contract purchases for 2012 will increase by 35% over 2011.

Net loss for the year for the year was $5,217,928 compared to $1,619,771 for 2010. The increase was attributable to a decrease in gross margin due to higher cost of goods because of acquisition, higher G&A expense due to integration of Smartcool UK and allowance for doubtful accounts (one large receivable past accepted accounting standards for days overdue), increased amortization expense and the impairment of UK intangible assets after management’s review of lower than expected operating results.

To ensure that the Company continues to be a going concern with adequate working capital through 2012 steps have been taken to reduce expenses by 25%, secure more predictable revenue generation by continuing to sign distribution contracts with minimum contract purchases, use invoice financing through bank facilities to improve the timing of customer receipts, file Smartcool UK 2011 tax return which provides for a tax loss carry back to recover all taxes paid in 2010 totaling $245,000.

The company has also received confirmation from the holders of purchase obligations that they will not require settlement of outstanding amounts in 2012 totaling $1,650,000 at the end of 2011. This will provide the company the opportunity to build working capital and pay these obligations as cash reserves permit.

Smartcool made progress in the pursuit of its business strategy during the year and expects it will return to year over year growth in revenue during the course of 2012 more consistent with historical percentage increase of 100%. With increased direct sales to large retailers and the addition of new distribution channels around the world, the company expects to become EBITDA positive in 2012.

Financial Statements and the Management Discussion & Analysis for the fourth quarter and fiscal year of 2011 are filed with SEDAR and available on Smartcool’s website.

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

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy 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, with no risk to existing equipment performance. www.smartcool.net

Miriam Duca, Managing Director of 2M Energy describes the progress her company has made in Malta. “Businesses today are faced with tighter budgets and rising operating costs. We offer our customers Smartcool technology as a quick and painless way to address these challenges. By saving energy on their air conditioning or refrigeration systems, our customers cut their costs without any effect on their operations, all with a rapid payback.”

Over the past three years, 2M Energy has steadily developed into a highly successful distributor for Smartcool. “We are very pleased with the ongoing technical development of 2M Energy, as they have expanded their skill set to handle advanced installations with high profile customers such as the Hilton Hotel Malta,” says George Burnes, President & CEO of Smartcool.

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

About 2M Energy Solutions
2M Energy Solutions is a cleantech company, specializing in electrical energy and cost reduction technologies for commercial, industrial and retail use. The company endorses well experienced technical personnel who can provide customers with the best solutions for their business and efficient after-sales services that guarantee satisfaction.  http://2menergysolutions.com 

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy 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, with no risk to existing equipment performance. www.smartcool.net

The company anticipates the continued expansion of its market share in 2012 by working with top tier food retailers, telecommunication and data processing companies in the United Kingdom, Europe, Asia, Australia and North America. The company’s office in Alton, England has been provided the necessary resources to handle the level of business currently anticipated in the United Kingdom and Europe for 2012.

Financial statements for the fiscal year of 2011 will be filed with SEDAR and available on Smartcool’s website by the end of April 2012.

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

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy 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, with no risk to existing equipment performance. www.smartcool.net

The Offering is subject to TSX Venture Exchange approval.

About Smartcool

Smartcool Systems Inc. (TSX-V: SSC) provides energy efficiency 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, with no risk to existing equipment performance.

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

Third quarter results and the MD&A are available online. The recorded conference call will be available for replay until January 15, 2012 by calling +1-905-694-9451 or toll-free +1-800-408-3053 and using the pass code 4727433.

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

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides energy efficiency 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, with no risk to existing equipment performance. www.smartcool.net  

Terre d’Energies Services has received exclusive distribution rights for Smartcool’s ESM in France and Morocco, and is planning for accelerated growth with an extensive list of key French retailers and main players in the food industry, hospitality and IT sectors’, with whom product implementation and testing has begun

“We are thrilled to be working with a well-established company of Terre d’Energies Services’ caliber,” says George Burnes, President & CEO of Smartcool. “Their early efforts have produced excellent results with customers in the supermarket industry, and we look forward to working with them on some major opportunities in the French market in 2012.”

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

About Terre d’Energies
Terre d’Energies Services is a subsidiary of the Terre d’Energies Group of companies. Terre d’Energies was founded in 1987, and provides a variety of green energy solutions to customers from six offices across France. The product offerings include solar panels, geothermal technology, heat pumps, smart batteries and energy efficiency products. www.terredenergies.fr

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides energy efficiency 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, with no risk to existing equipment performance. www.smartcool.net  

“We look forward to working with Bermuda Engineering, since they are a highly qualified partner in an ideal market for our technology,” says George Burnes, President & CEO of Smartcool.

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

About Bermuda Engineering Co. Ltd.
Bermuda Engineering is a fourth generation family business dedicated to improving energy efficiency and implementing renewable energy systems in Bermuda. The company focuses on providing customers with superior service and high quality green solutions. In October 2011, the company was awarded ‘Best Use of Green Tech’ at the Bermuda Tech Awards.  www.bermudaengineering.com

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides energy efficiency 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, with no risk to existing equipment performance. www.smartcool.net

The Company paid cash commissions to the finders totaling $3,500.

The common shares and warrants issued pursuant to the private placement and any common shares issued on exercise of the warrants are subject to four-month resale restriction that expires on April 7, 2012.

The proceeds raised will be used for general working capital and purchase of inventory.

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

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides energy efficiency 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, with no risk to existing equipment performance. www.smartcool.net

Closing of the proposed private placement is subject to certain customary conditions, including, but not limited to, the execution of definitive subscription agreements with subscribers, and the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or any state securities laws and may not be offered or sold within the United States or to US persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.

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

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides energy efficiency 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, with no risk to existing equipment performance. www.smartcool.net

In addition to recruiting sales-focused Dealers, Smartcool is training a small cohort of Installers to provide installation services and technical support for customers in each target region of the program.

The ECO³ Dealer Program has already begun with a major push in the south Florida area, centered in Miami, led by Smartcool’s new Director of ECO³ Distribution & Support, Bruce Kemp.

Bruce explains, “I have worked extensively with the ECO³ in the field and recognize it as the single most cost effective and reliable energy efficiency product on the market. I am excited to join Smartcool and drive the new ECO³ Dealer Program, as I know that we will be bringing two major benefits to the market. First, we save energy and money for our customers. Second, our Dealer initiative introduces small businesses and individuals to an exceptional product that will substantially increase their profitability despite a difficult economic climate.”

Bruce joins Smartcool from a strong technical background including two engineering degrees with extensive graduate studies in control theory. Bruce worked for United Technologies, including the divisions of Pratt & Whitney and Carrier Corporation where he was responsible for over 132 global product development efforts.

For more information on the ECO³ Dealer Program, please contact Smartcool directly at info@smartcool.net or toll-free +1-866-669-1388.

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

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides energy efficiency 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, with no risk to existing equipment performance. www.smartcool.net

Inclusion in utility rebate programs is an extremely effective way of increasing the visibility of energy efficiency products such as Smartcool’s to end customers. These programs provide financial incentives that help offset the cost of efficient equipment upgrades. Implementing energy efficient upgrades in a facility can help improve a company’s bottom line by reducing energy usage and increasing a building’s overall performance.

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

About Con Edison
Con Edison is a subsidiary of Consolidated Edison, Inc. [NYSE: ED], one of the nation’s largest investor-owned energy companies, with approximately $13 billion in annual revenues and $36 billion in assets. The utility provides electric, gas and steam service to more than three million customers in New York City and Westchester County, New York. For additional financial, operations and customer service information, visit us at www.conEd.com, at our green site, www.coned.com/thepowerofgreen, or find us on Facebook at Power of Green.

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides energy efficiency 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, with no risk to existing equipment performance. www.smartcool.net

“We are enjoying a great deal of success as a distributor of Smartcool’s ECO3™,” explains Doug Overvold, President of TEC. “Our strategy is a Circle of Optimization that focuses on voltage conditioning, power factor, lighting, and facility grounding. Now with Smartcool we are able to optimize the cooling and refrigeration as well, which is an important addition to the solutions we offer our customers.”

“Smartcool is very pleased to have a distribution channel of TEC’s caliber in the Midwest,” says George Burnes, President & CEO of Smartcool. Success in this region is significant for our business. Strong sales here demonstrate that even in areas where electricity rates are below the national average and relatively mild summer temperatures mean a lower average demand for cooling, our products still provide considerable value to customers.”

About Total Energy Concepts
Total Energy Concepts is a solution based company offering power quality and energy management systems to a wide variety of industries. With TEC’s engineering team and diverse product offerings, they are able to design complete systems that are custom built for each facility. This offers the best possible savings for each individual customer.
www.totalenergyconcepts.com

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides energy efficiency 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, with no risk to existing equipment performance. www.smartcool.net

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

“Based on our testing of the ESM™ with Aramco and the excellent results achieved, we are moving forward with an initial installation of the technology on several air conditioning chillers in Aramco’s Dhahran Community,” explains Dan Mizesko of US Chiller Services MENA. “Saudi Aramco has had environmental policies in place for decades. The adoption of Smartcool technology to improve their facility energy efficiency is another step on the path towards a clean energy future in the Middle East.”

“We are very happy with the commitment of our distributor, US Chiller Services MENA, as they have made these installations possible,” states George Burnes, President & CEO of Smartcool. “We are looking forward to continuing our work with them as we anticipate a roll-out of our technology to additional Saudi Aramco facilities.”

Read more about energy efficiency for industry on Smartcool’s blog.

About US Chiller Services MENA
US Chiller Services includes a dedicated Energy Engineering Department and is committed to providing the Middle East and Gulf Region with the most advanced services and solutions available in the HVAC/R Industry. For more information, contact info@uschillerservices.com or visit the website www.uschillerservices.com.

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides energy efficiency 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, with no risk to existing equipment performance. www.smartcool.net

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

Highlights:

• Gross profit for the quarter was $686,681 compared to $339,360 for the same quarter of the previous year.
• Smartcool’s distribution network maintained its significant growth pace, reaching $674,471 and contributing to 71% of the quarter’s total revenue.
• The Company had $1,515,348 in cash and cash equivalents at the end of the quarter, compared to $323,241 in cash and cash equivalent at the end of the first quarter of 2010.
• General and administrative expenses increased to $893,249 from $710,304 for the same quarter of 2010 due to the acquisition of Smartcool UK. Adjusting for this newly acquired subsidiary’s expenses, the quarter’s general and administrative expense total was $752,984, increasing by $42,680 or 6% from the first quarter of 2010 while there was an increase of 49% in revenue.
• Net loss for the quarter was $578,824, a decrease of $172,933 from $751,757 for the same quarter of the prior year, due to revenue growth. The loss per share (basic and diluted) for the first quarter was $0.01, compared to $0.02 for the same quarter of 2010.
• The acquisition of Smartcool UK increased intangible assets by $3,768,164 bringing Smartcool’s total assets to $10,771,424 while current liabilities increased by $1,478,936 due to the acquisition.

As of March 31, 2011 the company had 60,154,726 common shares outstanding. The detailed financial statements can be found at www.sedar.com and on Smartcool’s website.

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.

The range of activities that IRA shall undertake in collaboration with Smartcool include coordinating investor meetings, developing and producing corporate presentations and generally facilitate and enhance the company's relations and communications with its shareholders and the investing community.

The term of the agreement is 12 months from the effective date of June 1, 2011 until June 30, 2012 with the possible extension of the Agreement on a monthly basis thereafter. The Agreement may be terminated by either party on 30 days written notice. IRA shall be paid a fee of US$8,500 per month during the term of the Agreement commencing 30 days after the date of the Agreement. Additionally, 480,000 incentive stock options will be granted at an exercise price of CAD$0.40 per share, which options shall vest and be exercisable at the rate of 40,000 options per month during the term of the Agreement. The anticipated total cost of this agreement to Smartcool for the 12 months is approximately US$102,000. Smartcool expects to pay the costs of the Agreement from funds on hand.
The agreement with IRA is subject to the approval of the TSX Venture Exchange.

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.

Throughout 2010, Smartcool continued to build a robust global distribution network for the entire Smartcool product line. The Smartcool global distribution network now consists of new partnership agreements with multiple third-party distributors throughout the United States, including several in Florida, California, and states in the Midwest. New partnership agreements were also formed with third-party distributers throughout Southeast Asia, and in early 2011, Smartcool expanded its reach with a distribution agreement that serves several countries throughout Eastern Europe. With the recent acquisition of a well-established distributor in the UK, Smartcool also plans to continue its revenue growth through additional installations in grocery store chains, data centers, telecommunication firms, and convenience stores throughout Europe and North America.

Smartcool’s focused sales effort on a customer base with multi-site installations has resulted in greater market penetration, and has enhanced profitability by developing a more cost effective sales effort.

The full 2010 Financial Results with MD&A are available on the Smartcool website.

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.

Smartcool and Murdock have jointly initiated an evaluation of the Company’s business plan, corporate organization, financial and capitalization needs and structuring. Murdock has embarked on an extensive review of the company’s operations, including acquisitions, private and public equity and debt and other organizational aspects that will be accretive to shareholder value. Murdock will assist Smartcool with all aspects of its financial matters, including and public and media relations, seeking to broaden the US shareholder base through direct communications, research coverage and investor meetings with appropriate parties.

“Smartcool Systems is an exceptionally well managed entity that is embarking upon an aggressive business plan to transform the company from an early revenue producing entity to a worldwide marketer of energy savings systems. This will grow revenues substantially in the coming months and we are delighted to be working with George Burnes and his team,” stated Thomas Dean, President of Murdock Capital.

“After conducting an exhaustive and extensive search for the right US-based company to assist us, we feel that Murdock will add value to our strategy, and are anticipating a long and fruitful relationship with them,” says George Burnes, CEO of Smartcool Systems. “In addition to retaining a strong US-based firm we have extended the term of our contract with the Howard Group who have provided us similar services in the Canadian market for the past eighteen months. Going forward we have a strong team in place that will give the capital markets access to ongoing progress that we as a company are making.”

About Murdock Capital Partners Corp.

Since its inception, Murdock has raised over $500 Million in equity and project financing for various public and private entities in the alternative energy and high technology industries, has assisted in listing over a dozen companies on US Exchanges, including the ASE/NYSE, Nasdaq, and OTCQX, and has been involved in a number of substantive mergers and acquisitions. Murdock’s subsidiary, Innovative Research Associates, handles all aspects of investor relations, including the publishing of industry overviews and specific company reports, media contacts, institutional and retail brokerage meetings, and has conducted conferences on specific natural resource opportunities. Using an extensive, proprietary data base, IRA reaches targeted audiences with a focused emphasis on their clients’ specific 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.

Daniel Schlitner, President of Bricks & Bits Inc, is enthusiastic about the myriad of applications for Smartcool's products. "Our customer base will benefit tremendously from the addition of the ESM and ECO3 product lines to our service offerings. We have already conducted a highly successful pilot project with a major retailer in Poland. This pilot project provided a return of invested capital in just 20 months from a Smartcool installation at a wholesale outlet store. We are looking forward to the rapid adoption and implementation of Smartcool technology by our customers throughout the region.

"We are pleased to be working with a company of Bricks & Bits’ caliber and experience,” says George Burnes, President and CEO of Smartcool. “This distribution agreement provides us with significant advantages as we expand into this strategic market. Bricks & Bits Inc. will serve as our local distribution hub and assist us in recruiting additional strong partners throughout the region."

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

About Bricks & Bits
Bricks & Bits Inc., provides electrical energy saving solutions and advisory services in the areas of energy audit, energy cost cutting and energy efficiency for systems such as: lighting, motors, cooling, A/C, fans, kitchens hoods and boilers. The company also provides developers and property management companies complete outsourcing solutions for energy management. www.bricks-bits.com

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 validated by 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.

Mr. Siddharth Patel, Commercial Director at Ecopower explains, "Prestige Group is one of the largest and best known property development companies in South India, and the success of this project is already opening up major opportunities for us to bring Smartcool's technology to all corners of the commercial real estate industry."

"With skyrocketing demand for electricity, limited generation capacity, and considerable HVAC-R use, India offers a massive market for Smartcool's products," states Steven Martin, Executive VP at Smartcool. Our ECO3™ and ESM™ offer a cost effective solution to businesses across the country, and we look forward to continued success with companies like Ecopower and the Prestige Group."

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.

In addition to a broad customer base, Smartcool UK has built an exceptionally strong technical, sales and management team during its many years of operation, and has gained extensive experience with Smartcool's technology across a variety of applications. In addition to a steady stream of installations for small and medium sized businesses, the UK team has successfully completed major roll-outs of Smartcool technology, including 675 Tesco markets, 104 Sainsbury's supermarkets and several other Fortune 100 companies.

The combination of the UK team with Smartcool Systems Inc. will provide a seamless support network for direct global sales as well as international distributors. The experience of the UK team with respect to large-scale roll-outs will accelerate the ability of Smartcool to execute on new and existing business opportunities.

"The European market represented over 50% of our 2010 revenue, with forecasted growth continuing for 2011," declares George Burnes, President and CEO of Smartcool Systems Inc. "This is one of the most important strategic steps we have undertaken, second only to the acquisition of the technology in 2006. It is expected that the impact of this acquisition will be demonstrated by dramatically increased gross revenues and profits in 2011 and beyond."

Steven Martin, who assumes the position of Executive Vice President, says; "The combined organization provides a solid platform from which we can rapidly build revenue in the UK and Europe due to enhanced resources and synergies. I am also very excited about the opportunity for the UK team to play a major part in the development of revenue and profitability around the world."

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.

Finders' fees consisting of 626,667 compensation warrants and $184,999.99 were paid in accordance with the policies of the TSX Venture Exchange. The compensation warrants are exercisable at a price of $0.30 for a period of 12 months from the date of issuance.

All securities issued pursuant to the Private Placement are subject to a hold period expiring June 23, 2011.

The proceeds from the offering of units will be used for the acquisition of all of the issued and outstanding shares of Smartcool Systems U.K. Ltd., a private company owning certain distribution rights to the issuer's technology in the United Kingdom and Ireland, and to provide working capital as previously announced on January 17, 2011. The acquisition is scheduled to close on Monday, February 28, 2011.

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.

All other terms of the private placement remain the same. Each unit is comprised of one common share and one-half of a non-transferable common share purchase warrant, with each whole warrant entitling the holder thereof to purchase an additional common share at a price of $0.45 per share for a period of 24 months from the closing date.

This announcement is made on behalf of Smartcool's Board of Directors.

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.

Smartcool may, at its discretion, pay a finder's fee of up to 8% of the gross proceeds and grant an aggregate of up to 800,000 non-transferable Compensation Warrants. These Compensation Warrants will enable the holder to acquire an equivalent amount of common shares at a price of $0.30 per share at any time up to twelve months after closing.

The proceeds from the offering of Units will be used for the acquisition of all of the issued and outstanding shares of Smartcool Systems (UK) Ltd., a private company owning certain distribution rights to the Issuer's technology in the United Kingdom and Ireland, and to provide working capital as previously announced on January 17th, 2011.

In consideration, the Company will pay to Andrew Sanders and Steven Martin (collectively the "Vendors") an amount of £2,200,000 (payable over a period of two years) plus an amount equal to the net book value of the shares acquired, and will issue to the Vendors a total of 1,000,000 share purchase warrants (the "Acquisition Warrants"), each such Acquisition Warrant entitling the holder to purchase one common share of the Company at $0.30 per share for a period of 24 months from issuance, and vesting in 25% tranches every six months. The Vendors are arm's length parties to the Company.

Closing of both the proposed private placement and the acquisition is subject to certain customary conditions, including, but not limited to, the execution of definitive subscription agreements with subscribers with respect to the private placement, and the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or any state securities laws and may not be offered or sold within the United States or to US persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.

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.

"With the record high temperatures we experienced all summer long in 2010, we must find an answer to lower our electricity bills in Florida. Smartcool's technology is an important part of our solution," states Matt Lundstrom, Vice President of Veritage Management Inc.

The rollout was prompted by an extremely successful evaluation of Smartcool's technology at a Bee Ridge Storage facility in Sarasota, FL. "Our installation of Smartcool's ECO3™ gave Veritage impressive energy efficiency gains of 26% on the eleven air conditioning units included in the trial," says Bob Burton, VP Sales for GES. "This gives Veritage considerable relief from their high electricity bills, and a return on investment of 70% for the first year."

About Global Energy Services

Global Energy Services, headquartered in St. Petersburg, Florida, specializes in sustainable energy, conservation, green initiatives and new technologies. www.globalenergysvcs.com

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.

Under the terms of the proposed acquisition, Smartcool Systems EMEA Ltd., a wholly-owned subsidiary of Smartcool Systems Inc., will acquire all issued and outstanding shares in the capital of Smartcool Systems UK as well as assuming the obligations of all the company's employment agreements. The effective date of the transaction is January 1, 2011, with a closing date of February 28, 2011.

The transaction is subject to the Company reaching a definitive legal agreement, raising sufficient capital to fund the acquisition, as well as all the required approvals of the TSX Venture Exchange.

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.

• Gross profit for the quarter increased by $334,848 to $794,184 (72% of revenue) from $459,336 (67% of revenue) for the third quarter of 2009.

• General and administrative expenses for the quarter decreased to $751,037 from $809,018 for the same quarter of 2009.

• Net loss for the quarter was $259,725 ($0.01 per share), decreased by $248,284 or 53% from $471,100 ($0.01 per share), for the third quarter of 2009.

• The company had $622,422 in cash and cash equivalents at the end of the quarter, compared to $164,434 in cash and cash equivalent and short-term investments of $252,822 at the end of the third quarter of 2009.

• With its distribution channels steadily expanding and positive cash flow being generated from operations this quarter ($142,742), management is confident that the company will continue executing on its strategic business plan in the next twelve months.

As of November 25, 2010, the outstanding shares are 46,821,396 and diluted are 55,482,096.

The detailed financial statements can be found at www.sedar.com.

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.

The roll-out of Smartcool's technology is part of Sainsbury's RESET Program. The mandate of this program is to reduce the company's greenhouse gas emissions by retrofitting its supermarkets to become more energy efficient. Smartcool's ESM™ uses compressor optimization technology to reduce the energy consumption of the refrigeration systems, reducing each Sainsburys store's total electricity usage by between 3.5% and 4.5%.

The roll-out of Smartcool technology to a total of 104 Sainsbury's locations to date has been a key component in the company's energy saving strategy. "The Smartcool roll-out has gone extremely smoothly and we are thrilled to have our refrigeration systems in participating stores now using dramatically less energy with the ESM™," says Jeremy Waters, Energy Manager at Sainsbury's. "We are seeing immediate reductions in our greenhouse gas emissions and operating costs. Given these positive results, we look forward to continuing our successful relationship with Smartcool in the future."

"We are extremely excited to be contributing towards the goals of Sainsbury's RESET Program. Our ESM™ has proven to be an ideal solution for Sainsbury's as our installations do not impact their operations, and we begin saving them energy, money and greenhouse gases right from day one," declared Mr. Steven Martin, Sales Director for Smartcool Systems EMEA Ltd.

Smartcool's ESM™ and ECO³™ products are installed between the existing compressor and primary controller, involving minimal downtime of the system. This is critical for businesses like Sainsbury's, where maintaining refrigeration temperatures and performance is essential.

"In 2011, we are expecting to continue our relationship with Sainsbury's, installing our technology in further locations in the UK. It is hoped this third phase will bring substantial energy savings to the supermarket chain," says George Burnes, President & CEO of Smartcool.

About Sainsbury's:

Sainsbury's is the UK's longest standing major food retailing chain, having opened its first store in 1869. The Sainsbury's brand is built upon a heritage of providing customers with healthy, safe, fresh and tasty food. Today it differentiates itself by offering a broad range of great quality products at fair prices with particular emphasis on fresh food, a strong ethical approach to business and continuous leadership and innovation. Sainsbury's is a subsidiary of J Sainsbury plc (LSE:SBRY) and consists of 785 stores. For more information visit their corporate website at www.jsainsburys.co.uk.

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.

GES has already assisted the YMCA of the Suncoast in Clearwater, FL, by installing Smartcool's ECO³™ to increase the energy efficiency of the facility's air conditioning system. GES installed the ECO³™ at the YMCA where Tim Ackerman, VP of Buildings & Grounds, could see immediate energy savings of 10% to 12% of the facilities' overall kWh usage during a trial period that included unusually high temperatures compared to prior years. "As we move forward with our plan to roll out the ECO³™ across our entire association of YMCAs in the Suncoast service area, we are looking at the potential to save in excess of $50,000 per year at 8 locations. In our previous facility upgrades we have looked for a payback in 3 to 4 years, but with Smartcool and GES we are seeing a payback in 12 to 18 months. " says Mr. Ackerman. "The best part about the NPPP from GES is that every dollar we can save on our operations can be invested in strengthening our communities and providing opportunities to develop and nurture youth, improve health and well being, and support our neighbors."

"We are really excited to be able to help the non-profit organizations in our area become more energy efficient," explain Phil and Barb Plastic, Managing Directors of GES. "Our NPPP really provides a 'Gift That Keeps on Giving' to the non-profit organizations we are partnered with as they save money right away on their electric bills and the money they no longer need to spend on electricity can be re-allocated to the valuable programs and services they provide to the community."

Given the positive results of this first NPPP project, the YMCA and GES are moving forward with installations in YMCA facilities across Florida. One of the next installations will take place at the Greater Ridgecrest YMCA in Largo, FL. This particular YMCA is predominantly a government-funded operation serving minority youth who do not pay traditional membership fees; therefore, funding is limited.

"Smartcool felt that a donation of ECO³™ equipment to the Greater Ridgecrest YMCA was a way to assist them in their time of need while demonstrating our corporate commitment to the ideals of the NPPP" declared George Burnes, President & CEO of Smartcool. "Our business is energy efficiency, and in this case we can use the equipment and expertise of our business to help a non-profit organization face the challenges of operating in such a difficult economy."

Chris Lefaivre, VP of Business Development at Smartcool elaborates: "Assisting these non-profits is not only an important act in terms of helping the community, but also in terms of elevating the profile of our energy efficiency equipment through wide-spread exposure in the Florida market. We are confident that GES' plans to expand the NPPP to hundreds of other non-profit organization locations in the region will increase our market share in the region while providing simultaneously a really valuable benefit to the community."

About Global Energy Services

Global Energy Services, headquartered in St. Petersburg, Florida, specializes in sustainable energy, conservation, green initiatives and new technologies. Global Energy Services has created a Non Profit Partnership Program that allows Non Profit Organizations to have products installed that are suitable for their facilities and pay for them over time with money they actually saved with these products. www.globalenergysvcs.com

About the YMCA of the Suncoast:

The YMCA of the Suncoast is a cause-driven, non-profit charity that strengthens the foundations of community through youth development, healthy living, and social responsibility. We serve over 84,000 men, women, and children through 10 locations in Citrus, Hernando, Pasco, and Pinellas counties. For more information, please contact us at 727-467-9622 or visit our website: www.ymcasuncoast.org

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.

To date in 2010, Smartcool Southeast and Global Energy Services have installed upwards of 700 ECO³™ units in the residential, hospitality, restaurant, commercial and retail sectors across the state. The Sunshine State has traditionally been a successful market for Smartcool Systems Inc. (TSX-V: SSC), including Energy Saving Module (ESM)™ installations with major customers such as Hellmann's Perishable Logistics and U.S. Navy Exchange locations. Smartcool is very excited to see Smartcool Southeast and Global Energy Services build upon these past successes.

Bruce Kemp, President of Smartcool Southeast, has found the ECO³™ to be such a powerful product that he reorganized his energy division around Smartcool's technology as a new venture. "Air conditioning and refrigeration consume the lion's share of energy in the Southeast. As an HVAC contractor and energy efficiency solutions provider, we are always looking for ways to help our customers get the most out of their air conditioning and refrigeration systems. With the ECO³™, we are able to provide our customers with the same quality of climate control, while saving them money and ultimately greenhouse gas emissions."

Phil and Barb Plastic, Managing Partners of Global Energy Services, have found the ECO³™ to be an excellent product for their customers concerned with lowering their operating costs and greenhouse gas emissions. "In addition to providing our large base of commercial customers with superb energy efficiency gains, the ECO³™ is the cornerstone of our new Non-Profit Partnership Program. This program allows Non-Profit Organizations to start reducing their operating costs right away with improved energy efficiency, while paying over time with money they are actually saving."

"This latest order from Smartcool Southeast and Global Energy Services is yet another indicator of the strong potential for growth within this market," says Chris Lefaivre, VP of Business Development at Smartcool Systems. "Florida's climate and pro-active utility companies have made greater energy efficiency in air conditioning and refrigeration systems a priority for many businesses and residents. Working with Smartcool Southeast and Global Energy Services will help us meet the growing demand for the ECO³™ in Florida, and provides us with state wide coverage and increased revenue in a key market for our products."

About Smartcool Southeast

Smartcool Southeast is headquartered north of Miami in Lake Worth and is the sister company of Van's Electric, celebrating its 40^th year of servicing South Florida's energy savings and electrical contracting markets. Smartcool Southeast and Van's Electric are the premier regional providers of seasoned energy professionals and repair and service Electricians to South Florida's commercial and residential industries. http://www.smartcoolsoutheast.com/

About Global Energy Services

Global Energy Services, headquartered in St. Petersburg, specializes in sustainable energy, conservation, green initiatives and new technologies. Global Energy Services has created a Non Profit Partnership Program that allows Non Profit Organizations to have products installed that are suitable for their facilities and pay for them over time with money they actually saved with these products. http://www.globalenergysvcs.com/

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.

• Revenues were $1.137 million, representing a 120% increase over the $510 thousand reported in the second quarter of last year.
• Operating expenses declined slightly to just over $1 million, down from $1.176 million in Q2, 2009.
• The quarterly loss fell dramatically to $249 thousand compared to $929 thousand in the second quarter of last year.

Six months:

• Revenues were $1.772 million, representing a 140% increase over the $736 thousand reported for the first half of 2009.
• Operating expenses fell significantly to slightly more than $2 million, down from $2.69 million for the first six months of 2009.
• The first half loss was $917 thousand representing a major improvement over the $2.33 million reported for the same period of last year.
• The Company had $514 in cash and equivalents and $688 thousand in receivables as of June 30th.
• The weighted average number of shares at the end of the period was 45.14 million.

The Company remains focused on generating positive cash flow in the fourth quarter of 2010.

The detailed financial statements can be found at www.sedar.com.

The growth in revenue reflects the continuation of multiple site roll-outs with three major clients's world-wide directly managed by SSC. The next phase of rollout with these customers will be completed throughout the balance of the year. In addition distribution channels are progressing with development of increasing sales funnels that are being converted to equipment purchases and installation success.

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.

The pilot project saw Smartcool's South African based distributor, Aruba Cooling, installing the ESM™ on five chillers at Nedbank's central office headquarters located in Sandton, Johannesburg. After an in-depth monitoring and verification process, data indicated energy savings results above and beyond original estimates.

South Africa is faced with rapidly increasing energy costs alongside increasing demand, putting an enormous strain on the state-owned energy provider. Mr. Heini Nel, Managing Director of Aruba Cooling, observed that, "Energy saving solutions such as that provided by Smartcool, are going to become part and parcel within the South African commercial sector moving forward, as the local market adapts to spiraling energy tariffs that will double in the coming 24 months".

George Burnes, President and CEO of Smartcool, states, "We at Smartcool are excited about the progress being made in South Africa- a market we feel holds tremendous growth potential". Mr. Nel added that this successful pilot project with a recognized corporate giant like Nedbank will be influential in lifting the profile of Smartcool's energy efficiency products within the region.

About Aruba Cooling

Aruba Cooling (Pty) Ltd is a licensed distributor, for the South African region, of Smartcool technology to reduce energy, cost and carbon emissions. Aruba provides energy solutions to industrial, commercial, mining and retail businesses.

About Nedbank

Nedbank Group is South Africa's fourth largest banking group measured by assets, with a strong deposit franchise, the second largest retail deposit base, a client-centric wholesale and retail franchise and a substantial and growing bancassurance and wealth management offering. Nedbank Group's headquarters is based in Sandton, Johannesburg, with large operational centres in Durban and Cape Town- which are complemented by a regional branch network throughout South Africa and facilities in other southern African countries. Nedbank has set rigorous energy saving targets, including a 12% reduction of both energy use and carbon emissions by 2015.

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.

Read the full business update here, including the Byron Capital Market report.

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.

Smartcool is confident that the blog will help elevate the company's profile within key demographics as it reaches out to an international audience. The blog will feature weekly posts by resident communications specialist Katy Campbell, as well as guest posts from other Smartcool and external contributors. Ms. Campbell brings a unique voice to the blog, including an M.A. in environmental politics and considerable experience within the energy efficiency industry while working with Smartcool.

"We are excited about this new initiative, as it gives us the opportunity to share our knowledge and expertise with our readers," states George Burnes, President & CEO at Smartcool. "As an international company with years of experience in the HVAC energy efficiency sector, Smartcool can provide considerable insight and value to readers through its blog."

To visit Smartcool's blog, go to Energy Efficiency News at: www.smartcoolblog.com.

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.

"This agreement is a significant milestone for Smartcool as it moves us closer towards our goal of providing our energy efficiency solutions on a truly global scale," says George Burnes, President and CEO of Smartcool. "We are looking forward to working with such a strong regional partner in an area with a very significant market for energy efficiency products."

Relatively high electrical rates and a hot, humid climate, make these Asia Pacific countries an ideal market for Smartcool's energy efficiency technology for air conditioning and refrigeration systems. In addition to these clear advantages, Smartcool's new relationship will have the added benefit of access to the existing customer base of Tegma Asia's parent company, OMG Asia Pte Ltd. OMG is the largest integrated retail marketing service Company in Asia, with an extensive network of clients including some of the largest retailers in the region such as Tesco, Wellcome, Hero and Giant.

Bob Mebreur, CEO of OMG Asia, is enthusiastic about the potential for matching Smartcool's products with OMG's existing customers. "We estimate that the market for the ESM^TM and ECO^3TM within our present customer base is $30 million within the exclusive territories under contract. This gives us a solid platform from which to launch Smartcool's products into the highly lucrative Asian markets. Further expansion to other verticals, such as the Telecom sector where Smartcool has already established successful roll-outs will also significantly enhance these values in the Asia Pacific region."

About OMG Holdings

OMG Asia is the largest integrated retail marketing service company in Asia. Over the years, it has built an extensive retail network with the top retailers throughout the Asia-Pacific, including China, Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam. An estimated total of 36 million consumers pass through the doors of OMG's retail network annually.

OMG Asia offers its clients a comprehensive suite of products and services to meet their in-store marketing needs. From in-store media applications to in-store demonstrations, merchandising, precision marketing, data analytics and below-the-line solutions; OMG's products and services have been developed with the aim of helping their clients better attract shoppers and marketers to build brand loyalty through proven, effective and precise means.

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.

This particular installation in Biyagama, Sri Lanka was undertaken by Smartcool Systems' Sri Lankan sales channel, Cedar International, and was intended to demonstrate the effectiveness of the ESM™ in reducing the power consumption, which ultimately will significantly reduce the overall operating costs of the plant.

Results of the trial were impressive with energy savings being recorded at over 210,000 kWh per annum (over 17%), resulting in an overall annual reduction in operating costs of over USD$ 21,100 for this location alone. This is a significant savings within the competitive manufacturing sector.

George Burnes, president and chief executive officer of Smartcool Systems, states; "We at Smartcool Systems are extremely excited to be working with a brand as significant as Stretchline, and are convinced that our technology will be making a significant impact on the economic, as well as environmental, goals of the manufacturing sector moving forward". Mr. Burnes went on to add that the successful installation, and likely roll out, proves to further underline the capabilities of Smartcool's energy efficiency technologies within the market, as well as the company's effectiveness in providing a significant and economical energy cost-saving solution.

About Cedar International:

Cedar is a Sri Lankan owned group with a vibrant International Network controlling a number of Separate Business Units (SBUs) dealing in diverse sectors including Trade, Finance, Engineering, Energy and IT. The company's main focus is on providing meaningful solutions that help improve productivity and profitability.

About Stretchline:

Headquartered in Hong Kong, Stretchline Holdings is one of the world's leading manufacturers of elastic, and over the past 10 years have grown to global proportions with over half a million square feet of facilities worldwide. The company is known for its innovative design and product-development capabilities and supplies leading global brands and retailers. The Stretchline Group of Companies has manufacturing facilities in the UK, US, Mexico, Indonesia, China and Sri Lanka, with a global workforce of over 40,000 people.

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.

"In addition to these significant energy savings, we have also realized the important environmental benefits," said Mr. Alvarez, noting that the greenhouse gas reduction, from this one installation alone, had resulted in a reduction of 250,000 pounds -- the equivalent of planting 25 acres of trees.

"We have always sought to exceed our customers' expectations by providing the best quality products," said Mr. Alvarez, "and now we can do just that while aiding the fight against global warming."

"The installation of the Smartcool products at Olympic Fruit & Vegetable is an important step in bringing the technology to the food service sector," said George Burnes, president of Smartcool Systems Inc.

About EcoCurrents:

The energy savings program for Olympic Fruit & Vegetable was independently managed by EcoCurrents, LLC, a Long Beach-based company that employs a portfolio of proprietary technologies that yield verifiable reductions in electricity usage and result in a diminished carbon footprint at each facility.

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.

This initial phase saw the ABC group complete installation of Smartcool's Energy Savings Module (ESM), as well as ECO³™ energy saving technologies, on the air conditioning systems across five of its Hawaii-based locations. The sites that were selected provided a representative sample of the ABC portfolio of stores on the Islands of Oahu, Big Island and Maui.

After an in-depth Monitoring and Verification process, all of the above installations recorded impressive energy savings results providing a financial payback of less than 24 months to the ABC Group.

Lloyd Tanji, Project Coordinator for ABC Stores stated "We are very aware of the increasing costs of electricity on the Islands and the impact it has on our cost of doing business. Finding solutions like Smartcool addresses our corporate goals of improving our financial results as well as our responsibility for improving the environment."

Smartcool Systems president and chief executive officer, George Burnes, has stated; "We are extremely pleased with the results of the first phase of installations with the ABC Group, as we look forwarded to not only expand within the ABC Group of stores, but also within the retail sector."

About ABC Stores:

ABC Stores boasts a network of stores spanning the Pacific from its home base in Hawaii to Guam and Saipan, along with its newest location - Las Vegas, Nevada. ABC Stores employ more than 900 Associates. With almost all of its stores open 365 days a year, the brand has also been ranked 37th among Hawaii businesses.

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.

"It is an honour to be named as part of this year's TSX Venture 50," said George Burnes, President and CEO of Smartcool Systems Inc.. ""We are proud to be recognized for our team's extensive efforts and look forward to continued growth through 2010 and beyond."

The 2010 TSX Venture 50 were selected based on four equally weighted criteria that include return on investment, trading, analyst coverage and market capitalization growth in Cleantech, Diversified Industries, Mining, Oil & Gas and Technology and Life Sciences sectors.

"We are pleased to celebrate the 2010 TSX Venture 50," said John McCoach, President, TSX Venture Exchange. "These outstanding companies are proven leaders in their respective sectors and we are proud to have them listed on TSX Venture Exchange. We wish them all continued success."

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.

The contract, signed in early December, calls for the installation of the ESM units to be concluded by the end of February, 2010. Telefonica SA is one of the world's largest telecommunications companies. Its activities are centred mainly on the fixed and mobile telecommunications industry, while its broadband business is the key growth driver underpinning both. The company operates in 25 countries boasting a customer base exceeding 268 million across the globe. In Spain, the group has over 85 years experience with more than 15 million fixed lines, more than five million data and Internet access, and more than 23.4 million mobile customers.

The excitement around this signing was further highlighted by George Burnes, president and chief executive officer of Smartcool Systems, who stated, "We are delighted to be working with a telecommunications industry leader of such magnitude, and look forward to further expansion in this market vertical within the European region." Mr. Burnes went on to add that the rollout proves to further underline the capabilities of Smartcool's energy efficiency technologies within the market, as well as the company's effectiveness in providing a significant and economical energy cost-saving solution.

About Enertek

Enertek is an engineering consultancy created in 2004, with an office in the Basque country that provides its Spanish customers a team of skilled technicians in all matters related to energy savings. The firm has established its position within the supermarket, hotel, food processing, telecommunication and chemical industrial sectors, with the purpose to provide services focused on energy efficiency, with concrete profitable results, providing customized cooling and lighting solutions, and contributing to the improvement of the environment.

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.

Within the Government of Alberta, Mr. Schorn has held the role of Executive Director of Northern Development and is also no stranger to the BC region, where he has held the post of Head of the Canadian Manufacturers & Exporters Association in British Columbia.

George Burnes, President and CEO of Smartcool Systems Inc., states: "I am pleased to announce the appointment of Elden Schorn to the Smartcool Systems Board of Directors, and am confident that his unique insight and experience within both the private, as well as governmental sectors, will aid in driving the company forward". Mr. Burnes went on to add that the appointment coincides with a number of positive developments within the company over the past fiscal year, and that Mr. Schorn's professional reputation and advice and would undoubtedly aid in the company's drive to expand within the energy efficiency sector.

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.

Each Unit is comprised of a Debenture in the principal amount of $5,000 plus 8,600 Warrants, issued at a price of $5,000 per Unit. The Debentures are for a term of three years and entitle the holder to receive distributions of $150 each quarter per $5000 of principal amount of Debenture with an additional distribution of $150 if the Debenture is repaid in months 19 to 24 and two additional distributions (for a total of $300) if the Debenture is repaid in months 25 to 36. The Debentures shall also receive 5% of gross cash revenues to be paid towards the outstanding principal of the Debenture each quarter. The Debentures shall be secured by a general security agreement over the assets of the Company.

One whole Warrant entitles the holder to purchase one common share at a price of $0.50 per Share for a period of three years from the date of issuance. If the Company's shares trade at an average price of $0.80 per share for a period of 60 days, the Company, at its election, may force exercise or cancellation of the Warrants. If the Company repays any portion of the principal amount of Debentures prior to January 1, 2011, the number of common shares purchasable pursuant to the Warrants shall be decreased proportionately to the amount of principal so repaid.

A finder's fee shall be payable to Osprey Capital Partners equal to 10% of the aggregate proceeds from the offering of the Units.

The proceeds from the offering of Units will be used to purchase inventory and otherwise to provide working capital.

This offering is subject to the acceptance for filing of the TSX Venture Exchange.

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.

The progression of this project follows yet another successful trial phase-again with another member of the Australian banking 'top 4'. This particular roll out - now entering its second phase - will see approximately 800 systems being installed across its Australian network, with the possibility of even further expansion pending successful energy saving verification results.

Another vertical showing increasing potential within the region is that of large scale Australian gymnasium chains. Following on from a successful trial phase with one of the country's larger gymnasium groups, Smartcool Systems Australia have been requested to provide proposals for the second stage of a national roll out, whereby an additional 220 systems will be installed across the group's complexes within early 2010.

Smartcool Systems Australia CEO, Chris Rogerson, has attributed the distributor's current success to the recent pre-qualification through Ecospecifier for NABERS, as well as the obtaining of a Greenstar building rating. Rogerson went on to add that NABERS - the southern hemisphere equivalent of the certification required by the US Green Building Council's LEED program - has effectively lifted the profile of the Smartcool business and product range within Australasia. This, coupled with the recent completion of multiple high profile installations within the region, has given Smartcool Systems Australia Pty Ltd. increased recognition, throughout the various local industry verticals.

Based upon the above recent progressions, as well as the increasing success being recorded across Smartcool Systems' global network, Smartcool Systems Australia is expecting several national rollouts to commence within both Australia and New Zealand in 2010, as the company's product range continues to prove its ability within the global energy efficiency market.

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.

Advantages of a GSA contract include allowing Smartcool Systems USA to deal directly with US government, as well as its associated governmental agencies. GSA schedules are by far the favored purchasing mechanism for a large majority of federal buyers, and therefore a prerequisite for Smartcool Systems USA.

The GSA is continuously seeking to improve and streamline efforts in order to ensure purchasing of commercial services for US Federal customers is efficient and complaint, through the awarding of schedule contracts. Under the Federal Supply Schedule Program, the GSA enters into government-wide contracts with commercial firms, in order to provide screened products and services for given periods of time. This streamlined procurement vehicle provides a significant opportunity for Smartcool Systems USA Inc, in that it will significantly reduce the time required by US federal government customers in obtaining its products.

Apart from the benefit and sales relationships obtained by being awarded the GSA contract, Smartcool Systems USA Inc. also views this agreement as further strengthening the brand's position within the US energy efficiency market. This is highlighted in that in order to obtain GSA qualification, Smartcool Systems USA Inc have had to undergo an extremely detailed and arduous application process in order to prove its compliance within the US energy efficiency market.

The excitement surrounding the contract being awarded to Smartcool USA Inc. was further underlined by George Burnes, CEO of Smartcool Systems Inc. stating, "This GSA contract will allow Smartcool Systems USA to tap into an economically definitive market, that in 2009 alone saw $16.8 billion allocated to the Office of Energy Efficiency and Renewable Energy's (EERE) programs and initiatives". Burnes went on to add that now being able to deal directly with federal contacts and organizations will effectively put Smartcool Systems USA in a position to provide a meaningful contribution to the goal of increased energy efficiency amongst the United States administration.

About U.S. Government Services Administration (GSA)

The U.S. General Services Administration (GSA) leverages the buying power of the federal government to acquire best value for taxpayers and federal customers. It exercises responsible asset management. The GSA delivers superior workplaces, quality acquisition services, and expert business solutions as well as developing innovative and effective management policies.

The GSA manages more than 11 percent of the government's total procurement dollars and $24 billion in federal assets, including 8,600 government-owned or leased buildings and 213,000 vehicles.

With a mission to provide superior workplaces, expert technology solutions, acquisition services, purchasing and E-Gov travel solutions and management policies, at best value, the GSA allows federal agencies to focus on their core missions.

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.

As part of its due diligence process, U.S. Chillers installed the Energy Savings Module™ (ESM™) on a large tonnage centrifugal chiller at a location, managed by the Palm District Cooling Company, situated in Dubai. The test which initiated in July 2009 required 14 days of operation; whereby readings were taken prior to activation of Smartcool's ESM™. Readings were then recorded for a 14 day period with the ESM™ activated. To further verify testing results, these readings were compared to a 14 day period whereby readings were recorded with the ESM™ turned on and off on alternate days. The results from the testing period indicated energy savings of 13.16% when comparing the 14 days on and off period and 16.63% energy savings for the alternate day period. On average, the ESM™ provided savings of 2,925 kWh per day, an average savings of 14.89%. This equates to approximately US$95,000 per annum on this single chiller application.

"The test was conducted throughout real operational conditions during 42 days under the peak Dubai summer period when mid-day temperatures can reach 50 degrees centigrade, yet Smartcool's technology provided very impressive results," stated Dan Mizesko, Managing Director of US Chiller Services. "Not only did the ESM™ save substantial kWh input power to the chiller, it was also able to slightly improve the chiller's kW per ton efficiency. We were also able to confirm that the technology can be integrated to multiple chillers allowing chillers to share the common load equally and save energy equally. Our firm conclusion is the Smartcool technology is a powerful energy saving technology on single or multiple chiller installations."

"We are very pleased to be working with U.S. Chiller Services," said George Burnes, President and CEO of Smartcool Systems Inc. "U.S. Chiller has an award winning reputation and we feel very comfortable that our energy savings technology will be represented to a wide array of clients in a very important market place for our company. The test has only endorsed what we at Smartcool already know, and that is that we have a technology that can provide energy reduction resulting in significant cost savings."

About U.S. Chiller Services

US Chillers are the largest Chiller service specialist organization in the Middle East with a portfolio of over 350,000 tons of district cooling chillers, and over 800,000 tons of total liquid chillers under service agreements. With offices located in both the US, as well as the Middle East, US Chillers specializes in the repair, maintenance and service of all makes and models of large tonnage chillers. Its market reach is diverse and includes an array of sectors ranging from, and including, manufacturing and commercial real estate, the health care sector, retail as well as district cooling.

The brand's reputation within the market has been clearly underlined by it being awarded the 2007 MEP Specialist Contractor of the Year Award, 2008 MEP Specialist Contractor of the Year Award, as well as the company holding positions as a U.S. Green Building Council Member, as well as the 2008/9 IDEA Co Chair of the District Cooling Forum.

Smartcool Systems have chosen US Chillers as an independent validation party to undertake testing and analysis of its technology on the basis of its impeccable reputation within the industry from both a maintenance, as well as validation standpoint. For more information, visit www.uschillerservices.com.

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.

The catalyst for the agreement were existing opportunities to introduce energy saving technologies to that country's large hotel industry as Avireal currently counts multiple companies in the resort and accommodation market as its customers.

Avireal has over 1200 employees located in Switzerland and Dubai. It is a facilities management company, with a core competence in the area of energy efficiency. In addition to the hotel sector, it focuses on industrial and commercial markets. Avireal was founded in 1972 as the planning office and property Management Company for Swissair. The airline spun it off as an independent company in 1997 and it went private in 2005.

This agreement builds on an existing relationship between the companies as Avireal markets Smartcool's products in the Middle East and has completed projects in Dubai utilizing the technology. This distribution agreement is in keeping with Smartcool's objective to establish alliances with global business partners which have numerous existing customer relationships.

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.

Sainsbury's is an industry leader for environmental initiatives highlighted by its innovative Re-Set Program that is focused on reducing greenhouse gas emissions. In addition to the environmental benefits provided by Smartcool's energy saving technology, called the ESM^TM, the reduction in power usage also provides significant cost savings allowing Sainsbury's to re-invest in its own business.

"We are extremely pleased with the ongoing relationship with Sainsbury's," said Steven Martin, Sales
Director, Smartcool Systems (EMEA) Ltd. "The ESM^TM has been approved by the 'Centre of Excellence' which is a requirement for any technology to be implemented within a Sainsbury's store. We will continue to work alongside Sainsbury's energy management group as they expand their 'Re-Set' Program and we look to provide significant cost savings as well as helping Sainsbury's meet environmental expectations."

The ESM^TM has been installed in stores of various sizes and has been generating power savings in the range of 15% to 25%, depending on size and location. These results have been independently monitored by Sainsbury's project management company.

"Tough economic times require changes in attitude and thinking," added George Burnes, President and CEO of Smartcool Systems Inc. "We are delighted to be working with an industry leader that is seriously addressing their economic requirements without ignoring environmental responsibility and energy sustainability. As the Re-Set Program is adopted in other stores, we are excited that Smartcool has an approved technology generating the economic and environmental benefits Sainsbury's is looking for."

About Sainsbury's Supermarket Ltd

Sainsbury's Supermarkets is the UK's longest standing major food retailing chain, having opened its first store in 1869. The Sainsbury's brand is built upon a heritage of providing customers with healthy, safe, fresh and tasty food. Today it differentiates itself by offering a broad range of great quality products at fair prices with particular emphasis on fresh food, a strong ethical approach to business and continuous leadership and innovation.

Sainsbury's is a subsidiary of J Sainsbury plc (LSE:SBRY) and consists of 502 supermarkets and 290 convenience stores. In addition, 165 stores operate an internet-based home delivery shopping service. For more information please visit their corporate website at www.jsainsburys.co.uk.

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.

The business breakthrough was the result of a four-month trial program which produced energy savings of approximately 12% with a payback of less than 24 months. The assessment phase of the project required Smartcool to work in conjunction with 7-Eleven's engineering team. Data from the Smartcool's ECO3™ technology in two locations was analyzed over a four-month period.

The project was initiated by the Company's Philippine distributor, Smartcool Phil Systems Inc., working in conjunction with Philippine Seven Corporation (PEC), which operates the 7-Eleven convenience store network in that country.

"Yet again, the ECO3™ has provided significant energy savings and a rapid payback of capital invested", states David Verlee, President of Smartcool Phil Systems Inc. "The ease and non-invasive installation process allows for 'business as usual' for the client which is exceptionally important for those that rely on air conditioning and refrigeration as part of the business model."

The ECO3™ is specifically developed as an easily-installed secondary controller for air conditioning and refrigeration systems. It provides extensive cost savings and environmental benefits by optimizing the energy efficiency of air conditioning and refrigeration systems with one or two compressors. These cooling units are found in millions of buildings worldwide, including most ordinary homes.

"We are very pleased with the relationship we have developed with the Smartcool Phil Systems team," added Victor Paterno, President of 7-Eleven Philippines. "The ECO3™ system not only helps us significantly cut energy costs, it also enables us to provide for a better, 'greener', environment for our workers and customers."

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.

"We are extremely pleased with the outcome of this independent verification of Smartcool's advanced technologies" said George Burnes, CEO of Smartcool Systems Inc., "This clearly validates our product's ability to reduce both overall energy consumption, as well as demand during peak hours. Our products also allows customers to claim increased levels of green building rating tool credits"

Ecospecifier, with its associated database of select products, are the preferred verification and product selection company within the Australasia region and is utilized by leading consultants, engineers, architects, developers and facility managers throughout Australasia.

Many associate the program as the southern hemisphere equivalent of the certification required by the US Green Building Council's LEED program.

LEED is an internationally recognized green building certification system, aimed at improving performance in energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, and stewardship of resources and sensitivity to their impacts.

Chris Rogerson, CEO of Smartcool Systems Australia, highlighted the significance of this achievement by stating that, "Having a highly regarded industry group such as Ecospecifier issue this certification serves to confirm the effectiveness of Smartcool's technology and is a significant milestone for the Smartcool brand".

Rogerson added that this industry-recognized certification, which covers Smartcool for both the Green StarTM, as well as the NABERS^TM programs, will greatly assist Smartcool in enhancing its brand recognition within the Australian marketplace, as well as with the many projects currently being undertaken around the globe.

About Ecospecifier:

Ecospecifier is an organization that independently assesses and presents information on sustainable and healthy materials, products, technologies, training and published materials relevant to city design, infrastructure and landscaping, building design, construction and interior fit-out.

Its role as a trusted and recognized evaluator is to:

1. Provide a third-party, independent and unbiased assessment of information provided by manufacturers and other sources.
2. Assess products using known Australian and International Standards, independent test data, third party research and expert opinion.
3. Determine if products are eco and health preferable based on the premise that:
   • they exhibit one or more eco or health preferable characteristic, compared to other products in their category, or
   • they are a member of a product category that is in itself an eco or health preferred category; as well as
   • confirm that they do not contain 'significant' ecological or health damaging content.
4. To ensure that products meet Ecospecifier's assessment methodology.

For information please visit www.ecospecifier.org.

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.

Since 1988, The Howard Group Inc. has provided comprehensive investor and financial relations, business development solutions, in-depth strategic planning and financing services to public companies. The Howard Group Inc. is associated with the Insight Limited Partnerships I & II, which invest in micro and small cap companies.

The term of the agreement is for a period of 18 months subject to six month reviews. The Howard Group Inc. will be compensated with a monthly retainer of $7,000 (Seven Thousand Dollars) CDN and 554,000 (Five Hundred & Fifty Four Thousand) options. The options have an exercise price of $0.14 with a five-year term expiring October 1, 2014.

For further information on The Howard Group Inc. please visit www.howardgroupinc.com.

In addition to its ongoing investor relations services, The Howard Group Inc. will be providing an ongoing commentary on SSC's activities in its free, online live newsletter, Insight. Interested parties are encouraged to subscribe to the newsletter feed:

http://howardgroupinsightnewsletter.blogspot.com/

http://www.howardgroupinc.com/register.html

The above agreement is subject to the acceptance of the TSX Venture Exchange.

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.

The assessment protocol required Smartcool to install its proprietary ESM™ technology on one of the existing refrigeration systems in the international customer service centre located in Frankfurt. The assessment phase consisted of a three month operational comparison of the ESM™ data with 3 years of comparative data and comparison to a similar refrigeration system in the same location. The assessment data indicated electrical savings of 12% resulting in an 18 month return on investment.

"We are very pleased to be able to show significant energy savings for an industry leader in airline catering at a busy international airport such as Frankfurt, Germany," added George Burnes, President of Smartcool Systems Inc. "To achieve an 18 month payback in such a competitive industry as air transportation should provide future opportunities for Smartcool."

About LSG Sky Chefs

LSG Sky Chefs is the brand name of LSG Lufthansa Service Holding AG and is the world's largest provider of in-flight services. This is a subsidiary of the German Airline Lufthansa AG. LSG Sky Chefs provides airline catering, in-flight equipment and logistics as well as the management of onboard service and in-flight retail. The group is also the industry leading expert in managing the complete in-flight service supply chain for several airlines. LSG Sky Chefs partners with more than 300 airlines worldwide and operates some 200 customer service centers in 49 countries, producing around 427 million airline meals a year. In 2008, the companies belonging to LSG Sky Chefs Group achieved consolidated revenues of € 2.3 billion. For more information please visit www.lsgskychefs.com

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.

Energy Efficiency Technology Provides Significant Savings for Computer Giant in India

"Air conditioning is vital to the operations of companies such as Dell as equipment stability and performance cannot be affected by over-heating," said Steven Martin, Director, Sales, Smartcool Systems (EMEA) Ltd. based in London, England. "The facility in Bangalore required us to install on both Carrier and York Chillers that are operating for approximately 16 hours a day in extreme conditions. The successful evaluation clearly indicates that the ESM™ provides a robust solution for energy savings in air conditioning systems."

"The conclusions of this evaluation and sale are threefold," states, George Burnes, President and CEO of Smartcool Systems Inc.;

1. "The Smartcool technology provided significant savings to a world class organization such as Dell International;
2. The savings were achieved in an area with extreme climatic conditions; and
3. There was no detrimental effect on any equipment through the use of the Smartcool technology."

"We are pleased to work with a company such as Dell in helping them meet their green objectives while providing a very compelling return on their investment through providing energy savings. We are now working with Dell to implement the ESM at other Dell sites."

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.

Electricity Dependence and Rate Rises Drive Cyprus to Energy Efficiency Technology

The Republic of Cyprus is the third largest island in the Mediterranean. It is a prosperous country with a diversified economy. It is one of Europe's most popular tourist destinations attracting over 2.4 million visitors per year.

In recent years both industrial and residential users have experienced rapid increases in electricity rates that have raised Cyprus' rates to well over the average cost in the European Union. Residential rates are approximately US$0.20 per kilowatt Hour (kWh) with industrial rates running slightly lower at approximately US$0.18/kWh. As there is no supply of natural gas, Cyprus is currently solely dependent on electricity.

"The island of Cyprus is reliant on electricity and with rapid rate increases there is growing pressure to implement energy efficiency initiatives to reduce costs and maintain control of energy demand," stated Steven Martin, Director, Sales, Smartcool Systems (EMEA) Ltd. "We are very happy with the relationship we have developed with Lumina Solar as they have the experience within the marketplace to represent our line of products from a technical perspective. In addition, they are already looking further afield in order to expose the Smartcool brand to a wider audience in that area of Europe."

We are pleased with the level of financial and technical commitment being made by Lumina Solar to obtain these distribution rights in Cyprus " commented George Burnes, President & CEO of Smartcool Systems, "as these commitments continue to help build the global exploitation of our technology and ensure future revenues for our Company".

About Lumina Solar Ltd.

Lumina Solar Ltd. is a subsidiary of the Lordos Group of Companies. The Lordos Group is a highly diversified organization that constantly evaluates very carefully new trends and market needs, and enters the market with appropriate propositions and products to meet them. The Lordos Group was founded in the early 20th century in Famagusta, Cyprus, by Mr. George D. Lordos, the father of the Gorup's present chairman Mr. Constantinos G. Lordos.

The Lordos group has the following operating divisions; Property development, Energy, Food trading & Processing, Hotels & Leisure, Construction, Architecture, IT Services, Property Management, Investments, Capital Management.

Founded in 2007, Lumina Solar's mission is the consultancy, financing and commissioning of renewable energy production and the sale and installation of energy efficiency systems, based on new technologies, in markets ranging from South Eastern Europe to North Africa.

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.

"Commercial buildings are one of the biggest culprits globally in energy consumption and greenhouse gas emissions and this is no different in this part of the world," stated David Verlee, CEO of Smartcool SEA Pte. Ltd. "The proven technologies that Smartcool has developed provide an excellent economic solution that meets the requirements of commercial building managers to control building costs for its clients and reduce the size of their carbon footprint. The portfolio that CBRE currently manages provides us with a significant opportunity in this region."

"Our distributor in the Philippines is making significant inroads in their region and this agreement with CBRE, a globally recognized name, is a clear indication that our energy efficiency solutions are being marketed very well," added George Burnes, President and CEO of Smartcool Systems Inc. "Our clients have indicated that reduction in energy consumption and carbon emissions are important but ultimately it is the quick return on investment provided by Smartcool's solutions, usually around twenty four months, that allows them to commit capital to a retrofit program."

About CB Richard Ellis Philippines Inc.

CB Richard Ellis Philippines was established in 1998 and has been prominent in the Philippine market since 1995 through a previous Richard Ellis association. CB Richard Ellis Philippines currently employs over 200 highly qualified personnel and is rapidly expanding to serve clients with a full range of property services.

The firm has established its position as a market leader in the commercial brokerage services segment and undertakes a larger proportion of Tenant Representation assignments for Multi-national Corporations entering or expanding operations in the Philippines. The support services of residential brokerage are also an integral part of the full brokerage services to clients.

The company is also rapidly expanding its operations in Asset Services, with currently over 1.4 million square feet or over US$400 million of prime commercial, residential properties under it management, spread over major cities in Metro Manila, including Makati City, Ortigas Center-Pasig, Fort Bonifacio and the City of Manila.

The Research and Consultancy Department has an excellent track record providing professional advisory services to: financial institutions, large domestic corporations, multi-national corporations and government institutions, fund managers, international real estate funds and investment banks.

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.

Smartcool's revolutionary ECO3™ technology has the Utilities and Municipal Governments "California Dreaming" of Energy Savings

"The progress being made by Airtest in marketing the ECO³™ is a clear indication that the product addresses the needs of those that require a reduction in energy use and strict control of their electricity costs," stated George Burnes, President of Smartcool Systems Inc. "Airtest has been able to utilize their existing sales channels effectively to introduce our energy efficiency devices and this order further endorses our decision to create the distribution relationship."

ECO³™ is a revolutionary product specifically developed as a state of the art, secondary controller for air conditioning and refrigeration systems. It provides extensive cost savings and environmental benefits by optimizing the energy efficiency of air conditioning and refrigeration systems with one or two compressors. These cooling units are found in millions of buildings worldwide that includes telecom providers, retailers, restaurants, grocery and convenience stores, hotels, branch offices and other small commercial spaces, and residences. "Until now there has not been a viable way to improve the performance of smaller compressor based air conditioning and refrigeration equipment. The ECO^{3 TM} opens up a vast new market for energy upgrades that offers us an awesome potential for ongoing sales", Said Sid Pelston, President of EIG.

"Being recognized by a group such as EIG is a major achievement for Smartcool and our technology," added Chris Lefaivre, VP of Sales for Smartcool Systems Inc. "Both Airtest and EIG are visionaries in the field of energy efficiency technologies. The inroads being made due to our relationship with these groups certainly bodes well for future projects, especially in California."

About ATI Airtest Technologies Inc.

AirTest Technologies Inc is a manufacturer and distributor of air monitoring technologies that ensure the comfort, security, health and energy efficiency of buildings. The company has assembled a unique portfolio of sensor technologies that are targeted at the specific cost and performance requirements of the commercial and industrial buildings markets. The company creates a distinct differential advantage through its unique products, aggressive pricing and strong application assistance we provide our customers. The majority of our products are manufactured under ISO 9001 procedures to ensure optimum product quality.

AirTest serves the North American market from its headquarters in Delta, British Columbia and sales offices in Seattle, Washington, Fort Collins, Colorado and Santa Barbara, California. AirTest is a public company trading on the TSX Venture Exchange (symbol – AAT). www.airtesttechnologies.com

About The Energy Innovation Group

Energy Innovation Group, LLC (EIG) is the only Energy Program Integrator in the U.S., bringing the latest advances in traditional and emerging technologies, special utility incentives, a 'big picture' strategy, and a highly efficient one-stop service to help companies, cities and schools reduce cost and qualify for major incentives, far beyond standard conservation measures.

EIG typically can guide the most energy efficient companies to achieve a further 8% to 12% reduction in energy cost, beyond everything they have already implemented. For companies with less advanced conservation efforts in place, EIG often can identify and implement reductions of 30% to 50% of the entire energy bill. (www.energyinnovation.net)

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.

Smartcool's revolutionary ECO3™ technology generating savings in their own backyard

The ECO³™ has been installed on refrigeration systems a restaurant, a grocery store and a food processing plant and the air conditioning system for a small commercial building and a data centre.

"The success of the ECO³™ in these locations is very encouraging for Smartcool as it proves that we have developed a technology the makes economic sense in a region with relatively low electricity rates and a temperate climate," stated George Burnes, President of Smartcool Systems Inc.

ECO³™ is a revolutionary product specifically developed as a state of the art, secondary controller for air conditioning and refrigeration systems. It provides extensive cost savings and environmental benefits by optimizing the energy efficiency of air conditioning and refrigeration systems with one or two compressors. These cooling units are found in millions of buildings worldwide that includes telecom providers, retailers, restaurants, grocery and convenience stores, hotels, branch offices and other small commercial spaces, and residences.

"Smartcool is pleased to be working within our home province of British Columbia," added Chris Lefaivre, VP of Sales for Smartcool. "In recent months we have become a registered contractor in BC Hydro's "Power Smart Alliance" and qualified for the BC Venture Capital Tax Credit Program. The business community here is calling out for economically sound programs to reduce energy usage and their cost of power. With the ECO³™ we have developed a proven technology that meets those requirements with the added bonus of reducing greenhouse gas emissions. We are very proud to deliver a solution to today's problems that is both economically and ethically sound."

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.

Australian institution "banking" on energy reduction technology to cut emissions and bolster bottom-line.

"The trials were carried out with extensive monitoring and verification processes in 12 branches and 1 commercial building," commented Chris Rogerson, CEO of Smartcool Systems Australia. "This process proved the ability of Smartcool's energy reduction technology to save energy and maintain internal temperatures. "

Smartcool's ESM™and ECO3™ products are proven technologies that act as secondary controllers for air conditioning and refrigeration systems. They provide extensive cost savings and environmental benefits by optimizing the efficiency of the compressors used in such systems. With a rapid return on investment, Smartcool has developed effective solutions that help companies increase their margins and re-invest their dollars in revenue generating activities.

"We are extremely excited about this news out of Australia as making inroads into a major banking institution is a significant achievement for our distributor," stated George Burnes, President and CEO of Smartcool Systems Inc. "We understand the hurdles within the sales process for our technology and to have received this order for multiple branch and commercial buidling installations will generate significant revenue to our company and provide further reference sites for our technology. This will greatly assist Smartcool in Australia with the many other projects they currently have in their pipeline."

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.

Smartcool to benefit from Airtest's existing sales channels and technical expertise

"Airtest has developed some important strategic relationships in Canada and the U.S.A. with our own products and Smartcool's ESM™ and ECO3™ are certainly complimentary to our objective of reducing energy consumption for our customers," stated George Graham, CEO of ATI Airtest. "We are now able to introduce Smartcool's products through our sales process and we see many opportunities to bolster our sales to our customer base with the inclusion of this new product line."

"The interest in energy efficiency in North America is starting to escalate," said George Burnes, President and CEO of Smartcool Systems Inc. "Companies are realizing the benefits of utilizing government or utility generated funding in order to take advantage of unique technologies that will reduce energy usage and cut their cost of doing business. Developing our relationship with Airtest strengthens our distribution network in North America and with their technical expertise, we feel very comfortable that our products will be represented and supported at the highest level."

About ATI Airtest Technologies Inc.

AirTest Technologies Inc is a manufacturer and distributor of air monitoring technologies that ensure the comfort, security, health and energy efficiency of buildings. The company has assembled a unique portfolio of sensor technologies that are targeted at the specific cost and performance requirements of the commercial and industrial buildings markets. The company creates a distinct differential advantage through its unique products, aggressive pricing and strong application assistance we provide our customers. The majority of our products are manufactured under ISO 9001 procedures to ensure optimum product quality.

AirTest serves the North American market from its headquarters in Delta, British Columbia and sales offices in Seattle, Washington, Fort Collins, Colorado and Santa Barbara, California. AirTest is a public company trading on the TSX Venture Exchange (symbol – AAT). www.airtesttechnologies.com

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.

The supermarket chain's energy management team extensively tested the ESM™ to ensure it meets Sainsbury's energy and cost reduction requirements and complements Sainsbury's innovative Re-Fit Program, which is focused on reducing greenhouse gas emissions.

Sainsbury's, the UK's third largest supermarket chain, is an industry leader for environmental initiatives.

"We have enjoyed significant business and environmental gains over the last three years with our Reset program and our extensive testing has shown that the Smartcool ESM™ will be a key addition to our list of Energy Reduction initiatives," said Jeremy Waters, Energy Manager. "The energy savings we are experiencing with the ESM™ have led to valuable cost benefits and is helping us meet our Environmental targets"

Before making its purchase decision, Sainsbury's completed a comprehensive, real-world testing and analysis of the Smartcool ESM™. Testing was completed at an initial "assessment" store and then at seven additional pilot sites across the UK. Testing, which was carried out at stores ranging in size from convenience outlets to full-sized supermarkets, revealed extensive energy, environmental and cost savings.

With the Smartcool ESM™, testing at the assessment site showed:

• a savings of 12.3-per-cent kilowatt hours (kWh) of electricity for refrigeration units
• estimated electricity reduction of 150,380 kWh annually, or enough electricity to supply 32 homes
• estimated greenhouse gas reductions of 202,844 pounds annually

Meanwhile, testing at the seven pilot sites revealed:

• an average reduction in total store electricity usage of 3.5 to 4.5 per cent
• average 30-month payback on capital invested

Based on the eight-store testing, the ESM™ is now considered an approved product for Sainsbury's Reset program which led to the further installations in 17 additional stores.

"Sainsbury's understands that a green business is good business," said George Burnes, President and CEO, Smartcool Systems. "Retail customers expect great products, great service and fair prices, and they want to buy from companies concerned about their communities. Installing and using energy-saving technologies that cut greenhouse gases and electrical usage helps retailers meet consumer expectations."

The 3.5 per cent to 4.5 per cent reduction in total store electricity costs provided by the Smartcool ESM™ represents a significant saving for the stores using the system.

"These savings can then be reinvested back into store operations to improve the customer experience," said Burnes.

Sainsbury's green initiatives stretch back more than a decade, when Sainsbury's was the first retailer to publish a comprehensive environmental performance report.

"We are pleased to be part of Sainsbury's well respected and widely recognized Reset Program," said Steven Martin, Director, Sales, Smartcool Systems (EMEA) Ltd. "The quick return on investment provided by the ESM(tm) enables customers such as Sainsbury's to meet the challenges of economic responsibility and environmental legislation."

About Sainsbury's Supermarket Ltd.

Sainsbury's Supermarkets is the UK's longest standing major food retailing chain, having opened its first store in 1869. The Sainsbury's brand is built upon a heritage of providing customers with healthy, safe, fresh and tasty food. Today it differentiates itself by offering a broad range of great quality products at fair prices with particular emphasis on fresh food, a strong ethical approach to business and continuous leadership and innovation.

Sainsbury's is a subsidiary of J Sainsbury plc (LSE:SBRY) and consists of 509 supermarkets and 276 convenience stores. In addition, 165 stores operate an internet-based home delivery shopping service. For more information please visit their corporate website at www.jsainsburys.co.uk.

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.

Aruba agreed to distribute the Smartcool Energy Savings Module™ (ESM™) and ECO³™ dependent on the assessment results generated from the installation at Vector Logistic's distribution centre in Bellville South, South Africa. Smartcool's ESM™ technology was installed on existing refrigeration plant and monitored from October 2008 to February 2009. Subsequent results illustrated significant kilowatt hour savings (kWh) resulting in a two year payback on capital investment.

"Aruba is exactly the type of distribution partner we are looking for," stated Steven Martin, Sales Director for Smartcool Systems (EMEA) Ltd, based outside London, England. "They are a reputable firm within this market with extensive sales, marketing, design and project management experience. This will ensure Smartcool's products will be well represented from both a sales and technical perspective."

Smartcool's energy efficiency technology has undergone rigorous testing with third party engineers, utilities and universities as well as on-site customer testing. There is now a catalogue of evidence that Smartcool's ESM(tm) and ECO3(tm) technologies provide significant reduction in electricity usage in air conditioning and refrigeration systems. This translates into considerable cost savings and reductions in greenhouse gas emissions.

"Vector Logistics (www.vectorlog.com) is a well established logistics service provider for the food and food-related industries in southern Africa," added Steven Martin. "We are extremely pleased that Aruba is able to attract such companies to the benefits of our energy efficiency technology that can provide multiple site rollout opportunities."

About Aruba Cooling (Pty) Ltd.

Aruba distributes innovative refrigeration related and energy management technology solutions in Southern Africa, the rest of Africa and the Middle East.

The team at Aruba has extensive technical experience, including:

• Design, engineering, project management, and commissioning of industrial and commercial refrigeration solutions.
• Design and implementation of industrial ventilation and climate control systems for factories, pack houses and wholesale areas.
• Energy management of existing and new plants.

In addtion to a focus on the food & beverage, retail, logistics and industrial sector, Aruba's management has business experience in other vertical industries, including telecommunication, financial services and mining.

For more information please visit www.arubacooling.com

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.

With electricity rates averaging $0.12 (USD), and four times the number of cooling degree days (CDD) than are experienced in Vancouver, Chile and in particular its capital Santiago is an ideal market for Smartcool's technology. Chile is presently ranked second in South America for per capita carbon dioxide emissions (almost 80% of the country's electricity is supplied by carbon based fuels), making energy efficiency and the related reduction in greenhouse gas emissions a key concern for the country.

"The initial response to our test marketing was extremely well received," stated Pedro de Solminihac, General Manager of Gestión en Energía S.A. "Energy efficiency technologies are being looked upon very favorably in this market, but it is the return on investment the ESM™ provides that makes it stand out from the crowd. Becoming the exclusive distributor of the ESM™ became a priority for us and we are extremely pleased to now be working with the Smartcool team. "

Smartcool's energy efficiency technology has undergone rigorous testing with third party engineers, utilities and universities as well as on-site customer testing. There is now a catalogue of evidence that Smartcool's ESM™ and ECO³™ technologies provide significant reduction in electricity usage in air conditioning and refrigeration systems. This translates into considerable cost savings and reductions in greenhouse gas emissions.

"We have already completed the test phase of the ESM™ at two locations in Santiago for a major grocery chain, with very favorable results" added Norman Ramsey, Director of Sales at GEESA. "We are now entering into discussions with respect to a more comprehensive roll-out for this customer. This is a major step for us and will be an excellent reference point for the ESM™ in this region."

"Working with the GEESA Group has been a pleasure," commented Chris Lefaivre, V.P. Sales for Smartcool Systems Inc. "The South American region has been of interest to us for some time as the warmer temperatures and higher electricity rates create a great environment for our energy efficiency technologies. This region has significant carbon emission issues and being part of the solution to this problem is extremely exciting for us. We are convinced that the GEESA team has a very large opportunity in front of them and that they are perfectly equipped to take advantage of it."

About Gestión en Energía S.A.

Gestión en Energía S.A. (GEESA) was founded in 2008 with a focus on energy and cost reduction technologies for air conditioning and refrigeration systems. Together, GEESA's founding partners bring diverse experience in engineering, sales & marketing, and business to their newest venture. In becoming an exclusive distributor in Chile for Smartcool's technology, GEESA has secured its initial product offerings to the market. With two significant installation completed, GEESA is ready to become an effective, successful distributor in Chile.

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.

Smartcool's Asian distributor cites ease of installation and rapid return on investment when committing to acquire 2,000 ECO³™ units per year

Smartcool SEA is the exclusive distributor of the Energy Savings Module (ESM™) in the Philippines and the new distribution agreement allows exclusivity for Smartcool's new ECO³™. In order to maintain exclusivity for the ECO³™ distribution rights, Smartcool SEA has agreed to purchase a minimum of 2,000 units per year.

"Smartcool SEA has made significant inroads in the Philippines representing our ESM³™ product and we are very excited about this new distribution agreement for the ECO³™ ," stated George Burnes, President and CEO of Smartcool Systems Inc. "Smartcool SEA has developed a strong sales and technical team that has allowed for widespread sales and marketing in this region with complete technical support. We are extremely comfortable with this arrangement and confident that the economic and environmental benefits delivered by the ECO³™ will allow Smartcool SEA to exceed their expectations."

The ECO³™ is a revolutionary product specifically developed as an easily installed secondary controller for air conditioning and refrigeration systems. It provides extensive cost savings and environmental benefits by optimizing the energy efficiency of air conditioning and refrigeration systems with one or two compressors. These cooling units are found in millions of buildings worldwide.

"We have seen great acceptance of the ECO³™ in this region after our own due diligence testing results," states David Verlee, President of Smartcool SEA Pte. Ltd. "Return on investment is the key driver in this region and the ECO³™ delivers. The product is quickly and easily installed and generates considerable savings immediately."

Single and dual compressor systems are utilized extensively throughout Asia.

"Many sectors including telecom, convenience stores, supermarkets and restaurant chains are realizing that energy savings resulting from the installation of our products will provide significant cost savings and environmental benefits," added Verlee. "We are confident that the ECO³™ will be very beneficial to the growth of our business."

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.

Airworks has identified the ECO³™ as a proven technology that complements its existing portfolio of air conditioning products and services. Airworks has been committed to supplying the trade sector with solutions to economic and environmental demands in the HVAC space since 1995 and has developed a comprehensive network of service agents across Australia.

"Airworks represents everything we look for in a distrbution partner," stated George Burnes, President and CEO of Smartcool Systems Inc. "Airworks has a strong relationship with a national network of service agents that are very well equipped to sell and support our ECO³™ product. Relationships such as the one we have with Airworks reinforce the ECO³™ value proposition for companies that are serious about cutting energy costs and reducing carbon emissions."

The ECO³™ is a revolutionary product specifically developed as an easily installed secondary controller for air conditioning and refrigeration systems. It provides extensive cost savings and environmental benefits by optimizing the energy efficiency of air conditioning and refrigeration systems with one or two compressors. These cooling units are found in millions of buildings worldwide.

"When I first saw this particular energy saving module at work and having reviewed many accolades from high profile engineers around the world, I knew we had to have the ECO³™ as part of our portfolio," commented Mark Galea, CEO of Airworks Wholesale. "We finally have an opportunity to offer a product that provides significant cost savings and genuinely reduces carbon emissions direct to the HVAC industry. We have many energy and environmental issues in Australia but we feel strongly that the ECO³™ will help pave our way to a better environment."

About Airworks Wholesale

Airworks is a name that has been synonymous with the wholesale distribution of air conditioners to the industry since 1995. Airworks continues to remain loyal to the trade sector and has built a comprehensive national network of service agents that can be relied upon throughout Australia. Airworks currently distributes the York range of domestic and light commercial product nationally in Australia and another brand for the state of Queensland. Airworks has the ability to work closely with manufacturers to offer sales, warehousing, and fast efficient dispatch of product and the administration of warranty. (www.airworks.net.au)

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.

ECO³™ is a revolutionary product specifically developed as a state of the art, secondary controller for air conditioning and refrigeration systems. It provides extensive cost savings and environmental benefits by optimizing the energy efficiency of air conditioning and refrigeration systems with one or two compressors. These cooling units are found in millions of buildings worldwide.

"The ECO³™ has been developed using Smartcool's team of knowledgeable professionals who have years of extensive experience in the energy conservation field," said George Burnes, President and CEO, Smartcool Systems Inc.

The ECO³™ addresses an enormous global market that includes telecom providers, retailers, restaurants, grocery and convenience stores, hotels, branch offices and other small commercial spaces, and residences.

"The market opportunities for the ECO³™ are large and compelling," added Burnes. "Air conditioning and refrigeration expenses are significant costs of doing business, especially in warmer climates with expensive energy and electricity. By saving energy and money with the ECO³™, businesses can reinvest in areas that generate revenue and provide competitive advantage."

Smartcool's ECO³™ has already proven itself in retail and commercial applications, offering easy installation and a two to three year return on investment. Smartcool's global network of distributors, which is being enhanced with dedicated ECO³™ focused sales channels, will help Smartcool take best advantage of the ECO³™ introduction and the products' short, straight-forward sales cycle.

"Our customers' early response to the ECO³™ has been more than enthusiastic," said Chris Rogerson, CEO, Smartcool Systems Australia Pty Ltd, Smartcool's independent distributor of the Energy Savings Module (ESM™) and ECO³™ in Australia and New Zealand. "The high cost of energy and the need to reduce costs are paramount concerns for our customers, and many of them have already embraced the ECO³™ for the quick, dramatic benefits it provides."

The key features of the wall-mounted ECO³™ are:

• significant reductions in compressor run time, which reduces power usage in air conditioning and refrigeration systems
• compelling price point
• compatibility with existing equipment and controls
• proven technology that reduces energy consumption by 15% with no affect on room temperature, humidity or comfort
• reduced carbon and environmental footprint
• optimizes the cooling and heating cycles of compressor-driven heat pumps
• an IP64 rating allows for outdoor installation without additional protection
• qualifies for rebates in jurisdictions such as California and Florida

"With the ECO³™ introduction, Smartcool now offers a complete product line that perfectly addresses the energy and cost-saving requirements of all markets, from residential homeowners to the largest commercial spaces," said Chris Lefaivre, Vice President of Sales, Smartcool.

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.

"We are fortunate to be living in an area that allows BC Hydro to provide clean energy through its hydroelectric system and in doing so we have some of the lowest electricity rates in North America," added Chris Lefaivre, VP Sales and Marketing for Smartcool. "That being said, it is important that we preserve our natural resources and protect our environment. By providing an energy efficiency solution to customers, that makes economic sense due to rapid payback of capital, we feel Smartcool can play a significant part in achieving energy self-sufficiency in British Columbia."

About BC Hydro

As the third largest electric utility in Canada, BC Hydro serves customers in an area containing over 94% of British Columbia's population. BC Hydro endeavours to provide energy solutions to its customers in an environmentally and socially responsible way by balancing British Columbians' energy needs with the concerns of the environment. Through the efficient and reliable supply of electricity, BC Hydro supports the development of British Columbia and has constructed a world-class integrated hydroelectric system. Due to this efficient, reliable system, British Columbians enjoy some of the lowest electricity rates in North America.

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.

Management has committed to expanding Smartcool's global presence and the Philippines represents an ideal region in which the ESM™ can be implemented. South East Asia has high temperatures and high humidity which requires significant power requirements for air-conditioning and refrigeration. In addition, consumers in this region are paying high rates for electricity further supporting the requirement for energy efficiency technologies such as Smartcool's ESM™.

"Major advancements have been made by our distributor, Smartcool S.E. Asia Inc.," states George Burnes, President of Smartcool Systems Inc. "This particular installation is extremely encouraging as we have entered into an arrangement with a property group that has a significant portfolio and is committed to environmental management, which we feel Smartcool's technology can be an integral part of."

David Verlee, President of Smartcool S.E. Asia Inc adds, "This initiative represents one of many that we have been developing in this region. We are exploring opportunities in several vertical markets such as cold storage, manufacturing plants and supermarkets, and the relationships that we have developed make the outlook very encouraging. There is no doubt that the requirement for energy efficiency in this region is great and with our technical expertise we feel we can provide a service to our clients that will deliver significant economic benefits."

About Ayala Property Management Corporation:

Ayala Property Management Corporation (APMC) is a wholly owned subsidiary of Ayala Land, Inc. engaged in integrated property management services including building administration and maintenance, lease administration activities, commercial center and subdivision maintenance, and special technical services. It continues to provide property management services for shopping centers, subdivision, parking structures, waterworks operations and other properties developed by Ayala Land and its subsidiaries. APMC is best known for managing strategic parking facilities, office and residential towers in the Philippines' premier business district, Makati City. It pioneered in automating parking operations and continues to introduce similar innovations in its other areas of operation such as recycling water from households for non-potable uses. For more information please visit www.ayalaproperty.com.

About Smartcool S.E. Asia:

Smartcool S.E. Asia was incorporated for the purpose of selling, marketing and distributing Smartcool's technologies in Asia. The management group has vast experience assisting companies to develop strategies for entry into the Asian market place by offering professional market research and competitive analysis enabling the implementation of well thought-out development plans. With engineers, sales people and technicians working from offices in Manila, and a solid reputation within the energy efficiency/environmental community, Smartcool S.E. Asia is well positioned to take advantage of opportunities in this region.

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.

The joint venture brings together two companies that have been successful in introducing energy efficiency technologies to the Philippines market place. The Philippines has experienced a rapid increase in demand for electricity and being dependent on fossil fuels to generate power, this has had a significant impact on the environment. In addition, increased demand has also contributed to the escalating cost of electricity for both residential and commercial customers in this region.

"We are extremely excited about working with Davies Energy as Smartcool will now be working with a pioneer of the energy servicing industry in this region," said David Verlee, CEO of Smartcool Systems SEA PTE Ltd. "Davies Energy has a proven track record for providing energy management solutions to some of the largest companies in this region. With their technical expertise and broad distribution, we feel we have created an excellent distribution channel for Smartcool's energy savings technologies."

"Not only does Smartcool have excellent technologies for saving energy on air‐conditioning and refrigeration systems, our Smartcool partners share our core value of providing only the best technologies in the world to help our customers reduce their energy costs," said John J.P. Howley, President of Davies Energy Systems. "We are committed to providing our customers with "best of breed" technologies to solve their economic and environmental requirements. Smartcool's ESM™ certainly fits the bill in that respect."

About Davies Energy Systems, Inc.

Davies Energy Systems uses the most sophisticated technologies and engineering techniques to increase energy efficiency and reduce energy costs in our customer's facilities. We take a holistic approach that considers all the energy available in a facility, and we custom design each project using the appropriate technologies for that facility. All engineering and design work is done by our staff of more than 50 electrical and mechanical engineers located in the United States and Asia.

Davies Energy has improved the energy efficiency of facilities operated by some of the most sophisticated companies in the world in varying market sectors including Intel, Glaxo Smith Kline, Mandarin Hotels, Coca‐Cola Export Co., Kraft Foods, Peninsula Hotels, Unilever, Wyeth and Citibank.

For additional information please visit www.daviesenergysys.com.

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.

Smartcool Systems, whose Smartcool Energy Saving Module (ESM)™ makes refrigeration and air conditioning systems more energy and cost-efficient, recorded a net loss of $1,337,484 for the three-month period ending September 30, 2008 compared to a net loss of $1,066,472 for the corresponding period in 2007.

"Our third-quarter results continue to show solid revenue growth over previous periods and reflect the investments we are making in sales support and growing our distribution footprint," stated George Burnes, President and CEO of Smartcool Systems Inc. "Our strategic application of company resources is creating business opportunities in key Sunbelt markets in North America and abroad."

During the third quarter, Smartcool announced installations at Bezeq Israel Telecom, Israel's largest telecommunication service, a distribution agreement with Williams Evergreen Ltd. of Barbados, and approval by the B.C. Ministry of Technology, Trade and Economic Development for its Clean Tech Innovation Venture Capital Program, which offers tax credits to investors in clean technology companies operating in B.C. Recently, Smartcool announced it has received an order from the seven-storey, 246-guestroom Radisson SAS Hotel located in Media City, Dubai.

"With today's global economic uncertainty, companies are looking to invest in technologies that provide energy and cost savings and offer rapid pay-back on investment," added Allan Thompson, Smartcool CFO.

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.

Luxurious Dubai hotel has no reservations in adopting energy saving technology after extensive testing proves cost savings and greenhouse gas reductions

Before making its purchase decision, the Radisson SAS Hotel completed comprehensive testing of Smartcool's technology in June and July 2008. The testing revealed extensive energy, environmental and cost benefits, including:

• estimated reduction of 187,000 kWh annually
• estimated greenhouse gas reduction of 243,000 lbs pounds annually
• return on investment of approximately 15 months.

Radisson SAS Hotel, which offers 12 meeting rooms in addition to its luxurious guestrooms, will save enough electricity each year to power 57 homes by installing Smartcool ESM™ systems.

"Installing Smartcool's ESM™ is smart business," said Siegfried Nierhaus, General Manager of the Radisson SAS Hotel. "As with many companies in warm areas throughout the world, air conditioning and refrigeration expenses are a significant cost of doing business for our hotel.

"Smartcool's proven technology reduces costs for these systems, increases margins for the hotel, offers the opportunity to invest savings in other parts of our business, and provides environmental benefits for our community."

FARNEK Avireal, Smartcool's sub-distributor in the United Arab Emirates, obtained the Radisson SAS Hotel order for the ESM™. The order reinforces the effectiveness of the global distribution network that Smartcool has established and grown in the past few years.

"We are very pleased with the success that FARNEK Avireal has achieved with the Radisson SAS Hotel," said George Burnes, President and CEO, Smartcool Systems. "Hotels around the world understand the imperatives of investing in technologies that meet their business obligations to shareholders and their environmental commitments to their neighbors and communities. With the proven ability of our ESM™ to meet and exceed the industry's expectations, we believe we are well-positioned in this market going forward."

From his base in London, England, Steven Martin, Director, Sales, Smartcool Systems (EMEA) Ltd. noted that the ESM(tm) continues to attract attention in Europe and the Middle East in many vertical markets.

"This installation is a good example of the significant savings that Smartcool can provide for companies in the hotel and hospitality industry," said Martin. "These savings provide a rapid return on investment, helping our customers make the best investment from their capital budget."

About Radisson SAS Hotels and Resorts

Radisson SAS Hotels & Resorts, part of the Rezidor Hotel Group, currently operates over 155 hotels in Europe, the Middle East and Africa, with another 47 projects under development. Radisson SAS is a first class full service hotel brand with key differentiators such as the 100% Guest Satisfaction Guarantee and the Yes I Can! spirit of service.

The Rezidor Hotel Group is one of the fastest growing hotel companies in the world. Its current portfolio consists of 274 hotels in operation and under development in 47 countries encompassing nearly 55,000 rooms. Rezidor manages selected Carlson brands in Europe, the Middle East and Africa: Radisson, Park Inn, Regent and Country Inn. For more information on Rezidor and its portfolio of brands, visit www.rezidor.com.

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.

Under the provincial government's Venture Capital Program, an individual investor earns a 30 percent tax credit that is fully refundable for every dollar of capital invested in eligible companies such as Smartcool Systems.

"Investment in clean, green technologies is an investment in our economy, our environment and our future, and the provincial government's support for our industry is welcome and timely," said George Burnes, president and CEO, Smartcool Systems. "As a successful and growing clean-tech company, we will leverage the investments this program helps generate to continue developing innovative products that make air conditioning and refrigeration systems more efficient, cost-effective, and environmentally friendly."

Innovative clean technologies that reduce greenhouse gas emissions are expected to play a key role in helping to grow B.C.'s economy.

"Enterprises such as Smartcool Systems are creating a world-class cluster of clean technology companies in B.C. that offer jobs, opportunity and energy-efficient products that reduce greenhouse gas emissions and help manage climate change," said Technology, Trade and Economic Development Minister Ida Chong.

The venture capital program provides for a maximum credit per investor per year of $60,000, which would be realized by a $200,000 investment. Companies must keep capital raised under the program invested for five years.

For more on the B.C. government program and eligible investments, please contact your investment advisor.

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.

"We are pleased with the level of savings achieved utilizing the ESM™," says Mr. Clyde Gibson, Managing Director of Pine Hill Dairy. "It is imperative that we maintain control of our expenditures and one way of doing so is to reduce our power usage, which enables us to continue to invest capital back into our company, helping sustain our economic growth."

"We are delighted to partner with Williams Evergreen Ltd. as our exclusive distributor in Barbados," says Andrew Stanfield, General Manager, Smartcool Systems USA Inc. "Smartcool's proven energy reduction technology continues to be acknowledged here, with over US$500,000 in projects already quoted in this region."

About Williams Industries Inc.

Williams Industries Inc. (WII) is a diversified Caribbean corporation with headquarters at Warrens in Barbados. From its headquarters WII controls 10 wholly owned and 14 joint venture companies in Barbados and St. Lucia. WII also has investments in Jamaica. These companies do business in manufacturing, electrical engineering, supply to the construction industry, farming, tourism, water desalination, well drilling, real estate development, building and Equipment rental, sewage treatment, cellular communication and Tourism. The WII Group employs over 500 people, of which 209 of them are shareholders.

For additional information please visit www.williamsind.com.

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.

Smartcool E.M.E.A. and Smartcool (Israel) will now be working with Bezeq in order to formulate a roll-out plan to install Smartcool's energy reduction technology throughout their other facilities.

"We are very pleased with the success that Smartcool E.M.E.A. has achieved with Bezeq," states George Burnes, President and CEO of Smartcool Systems. "Israel generates its electricity from petroleum products and with the increase in commodity prices, commercial electricity rates have raised by 8.54% so far this year. Power costs are very significant in the telecommunication industry and air conditioning formulates a very large piece of those costs. Smartcool is working within this industry in other areas of Europe and North America and are experiencing similar levels of energy savings. We see the telecommunications industry as a major benefactor from our technology and Smartcool looks to see significant revenue growth from this sector."

About Bezeq

Established in 1984, Bezeq is Israel's largest telecommunications service provider. The Company is leading Israel into the new era of communications based on the most advanced technologies and services. Bezeq and its subsidiaries offer the full range of telecommunication services including domestic, international and cellular phone services; broadband Internet and other data communications services; multi-channel television; leased lines, and corporate networks.

The recently released first quarter report for the period ending March 31, 2008 indicates Bezeq Group revenues for the quarter to be New Israeli Shekels (NIS) 3,100 million (US$899,331,700 approx.) and pre-tax earnings of NIS1,093 million (US$317,086,951 approx.).

Bezeq's shares are quoted on the Tel Aviv Stock Exchange under the symbol BEZQ. For more information please visit www.bezeq.co.il.

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.

Smartcool Systems, whose Smartcool Energy Saving Module (ESM)™ makes refrigeration and air conditioning systems more energy and cost-efficient, recorded a net loss of $1,039,987 for the three-month period ending June 30, 2008 compared to a net loss of $768,358 for the corresponding period in 2007.

"Our six-month revenue growth is indicative of the strong foundation of distribution and sales support that we have laid for our business going forward, "said George Burnes, President and C.E.O., Smartcool Systems Inc. "While second quarter results moderated, we continued to generate momentum by signing distribution agreements in areas such as the UK and Germany and announcing significant new orders in the UK, Middle East and Australia."

Testing by customers, potential customers and independent third parties such as the University of Miami's Department of Industrial Engineering (for Florida Power & Light Company) continues to show that Smartcool Systems' ESM™ reduces operating costs and energy use, and improves margins.

"The benefits of our technology are quantifiable and proven. More companies are recognizing the advantages our ESM™ provides at a time when energy costs are rising and concerns about greenhouse gases and carbon footprints are widespread," added Burnes.

Smartcool's second quarter report can be viewed at our website, www.smartcool.net under the investor section or alternatively at www.sedar.com.

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.

"This is a significant transaction for Smartcool in many ways and we see this as a pivotal point to expand our sales growth in Europe and the Middle East," states George Burnes, President and CEO of Smartcool Systems Inc. "It fulfills our goal of establishing a corporate presence in Europe to expand sales efforts in this region. It will also allow us to support existing and new relationships in the Middle East. We plan to build a strong team in Smartcool EMEA and focus on the currently untapped market in India through this organization as well. We will now be selling directly to clients in Europe, the Middle East and India. This will improve our margins by approximately 30% from sales in these regions and we will be in greater control of the sales and marketing process. As part of the acquisition, Andrew Sanders and Steven Martin, formerly with TECC, will be joining Smartcool EMEA in senior management roles. They have a great deal of experience in the energy efficiency field, have a wealth of contacts in Europe and the Middle East and have been vital in the growth of Smartcool's Energy Savings Module (ESM™) with sales to the likes of Tesco and Gate Gourmet."

"Smartcool is committed to deploying resources and capital to enable Smartcool EMEA to expand the sales and marketing team in this region,' added Chris Lefaivre, VP, Sales and Marketing. "The cost of power generation is a significant problem in Europe and the Middle East and their energy efficiency programs are further advanced than those in the U.S.A. We have an opportunity to accelerate our sales growth and we are going to make sure the resources are in place to take advantage of it."

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.

"It was a privilege to be chosen to participate in this R&D project and we are extremely pleased with the outcome of the 12 month test completed by the University of Miami," states George Burnes, President & CEO of Smartcool Systems Inc. "Having such a well regarded Utility such as FPL publish a report that outlines the economic benefits available by using the ESM™ is a significant milestone for our Company. The independence of such a report and the ability to distribute it as a public document to interested parties throughout our distribution network will only help the ESM™ to become more widely adopted technology world-wide."

"This report is a valuable tool for our sales representatives especially in the Florida region," added Chris Lefaivre, VP Sales and Marketing for Smartcool Systems Inc. "The savings shown in the report reflects a 29-month payback, before applying rebates that it now qualifies for, based on the size and location of the test environment. Industry reports have shown that this falls well within the parameters that industry is looking for when evaluating the economics of capital programs. We will now be able to approach customers armed with a document that illustrates impressive kWh savings and peak demand reduction giving them further confidence that Smartcool's ESM™ technology will provide significant cost savings."

The FPL Group, with annual revenues of nearly $16 billion and a growing presence in 26 states, is nationally recognized as one of the country's premier energy companies. FPL Group's two principal subsidiaries are Florida Power & Light Company and FPL Energy, LLC. FPL is the largest investor-owned electric utility in Florida, serving more than 4.4 million customer accounts. It is one of the largest and fastest-growing electric utilities in the United States and is the nation's leading utility in customer energy efficiency programs. FPL Energy is a leader in producing electricity from clean and renewable fuels, a world leader in the development and operation of wind power, and the largest generator of solar power in the nation.

Chris Lefaivre continued, "FPL is committed to its community and the environment. They invest more than $100 million annually on energy efficiency programs and incentives and see efficiency as a major part of stemming the ever increasing demand for energy. Over the past decade the FPL Product Development Group has identified, tested and assisted with the deployment of green technologies that have mitigated the need to build 10 power plants, saving millions of dollars in generation costs, not to mention the environmental benefits."

George Burnes summarized, "We feel confident that being able to provide a third-party report from FPL, a globally recognized leader in energy efficiency initiatives and environmental programs, will provide further comfort to our customers and it is our expectation that the sales cycle for our technology will be reduced significantly."

The following provides the Executive Summary of the final report prepared by The University of Miami for FPL with respect to the 12 month field monitoring test of the ESM™. The test was completed at one of FPL's client locations, a national chain drug store located in Miami, Florida.

Report - Executive Summary

"This is a field test of the SMARTCOOL™ Energy Savings Module™ (ESM™) in a commercial HVAC application conducted by the University of Miami for Florida Power & Light Company under FPL's Conservation R&D Program. The Smartcool is an electronic control system which collects temperature data versus time when the compressor is on or off in order to calculate the optimal run time for each compressor. Control modules connect to switches located between the thermostat and each compressor.

The goal of the research is to estimate demand reduction of a heating/ ventilation/and air-conditioning (HVAC) control technology from Smartcool Systems, Inc. during Florida Power & Light summer schedule peak hour (4:00 to 5:00 pm), and winter schedule peak hour (7:00 to 8:00 am) specifically during the months of August and January, respectively. Additionally, consumption and reduction of energy (kilowatt-hours) is also of primary importance.

To measure the impact of the SMARTCOOL™, the University of Miami, Department of Industrial Engineering team installed, 21 dedicated data loggers and current transformers (CT), 3 loggers at the service entrance and 3 loggers on each of the A/C roof top units, free-standing, building of a national chain drug store in Miami, Florida.

These loggers were installed to acquire the power consumption at the service entrance and for each of these six units for a full one year. The SMARTCOOL™ was switched ON/OFF every other week to minimize the effect of the weather variation.

This report explains the methodology followed by the University of Miami team, presents the main results obtained, and explains the analysis techniques followed to investigate the performance of the SMARTCOOL™ to determine whether or not the installation of the SMARTCOOL™ on the cooling units will result in a reduction in the power consumption and/or the peak demand. The data collected using the HOBOs were validated by comparing it to a number of the electric bills of that facility. The average absolute percentage difference between the logged kWh and the FPL reported kWh was 3.34% for the 5 billing cycles selected during the winter period, while the average absolute difference between the logged kW demand and the FPL reported kW demand was 2.32%, and for the summer period the average absolute percentage difference between the logged kWh and the FPL reported kWh was 3.34% for the 3 billing cycles selected, while the average absolute difference between the logged kW demand and the FPL reported kW demand was 2.32%.

After validation of the data collection process, the multiple regression technique was the statistical tool used to analyze the data obtained. The kWh consumption data of the cooling units corresponding to an outside temperature that was below the thermostat setting of 70˚F were excluded from the analysis.

Regression equations were developed to describe the relationship between the power consumption of the A/C units (kWh), peak demand recorded at the service entrance (kW) and both the outside temperature and the SMARTCOOL™ were developed.

A t-test was performed on both the indoor relative humidity (RH) and temperature for the summer months. The first hypothesis tested was whether the mean RH with the SMARTCOOL™ "ON" equals the mean RH when it's "OFF". The t-test showed that there was no statistical significant difference (P <.001) between the mean RH values when the SMARTCOOL™ was "ON" and when it was "OFF".

The same conclusion was drawn when performing the t-test on the indoor temperature, there was no statistical evidence that turning the SMARTCOOL™ will significantly alter the indoor temperature (P <.001).

Based on the regression equation developed, it was concluded that the SMARTCOOL™ managed to reduce the kWh consumption by 8.9% and to reduce the peak demand by 10.8 % respectively. Using the test building characteristics and typical average weather for the FPL service territory, the annual energy savings is estimated to be 43,660 kWh with a demand reduction of 6.9 kW at 4-5 PM in August. The greatest energy savings occurred during the summer months. These savings were achieved with no report of change in comfort by the occupants of the test location."

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.

"Europe and the Middle East represent a massive opportunity for Smartcool," states George Burnes President of Smartcool Systems Inc. "This acquisition will allow the company to generate significant growth and with the application of capital to the sales and marketing efforts, it will enhance the very strong technical foundation TECC has established in these regions."

"The acquisition of TECC will streamline Smartcool's distribution channel thereby providing greater economics," added Chris Lefaivre, VP Sales and Marketing. "We feel confident that this investment will provide Smartcool better access to a market that is calling out for energy reduction solutions and subsequently generate stronger revenue growth for the company."

Closing of this transaction is subject to the approval of the TSX Venture Exchange.

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.

"The capital invested in the sales and distribution model are starting to make an impact", added Allan Thompson, CFO of Smartcool Systems Inc. "The revenue growth over the same period last year is very significant and to generate approximately 95% of the entire revenue for the year ended 2007 in the first quarter of 2008 is extremely encouraging. The nature of this business is to test your equipment in one location and then rollout through multiple facilities. This may make the sales cycle a little long initially but as we are seeing right now, clients are realizing the economic impact of energy efficiency and are embracing it."

Smartcool's first quarter report can be viewed at our website, www.smartcool.net under the investor section or alternatively at www.sedar.com.

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.

The signing of the Distribution Agreement coincides with an initial order from Smartcool Systems GmbH for equipment to be installed in multiple locations. These locations include the major target sectors that have been identified by the distributor, being Food & Beverage, Data Centres and the Telecommunications sector.

"We are extremely excited with the signing of this agreement as Smartcool is aggressively entering a market that is one of the largest consumers of electricity in the world and one that relies on imports for most of its energy supply" states George Burnes, President of Smartcool Systems Inc. "Germany is widely accepted as a world leader in the adoption of energy efficiency technologies. There is a commitment to meet European Union targets for reduction in carbon emissions and also to alleviate the pressures of ever increasing power costs to Germany's end-users. We are fully aware of the advancements being made in Europe with respect to green technologies and their adoption of such and Smartcool is committed to expanding its presence in this region."

Target Market - Germany:

Germany is one of the world's largest energy consumers with limited domestic energy resources which results in Germany importing most of its energy. Germany has one of the largest economies in the world with GDP in excess of US$2.8 trillion and is also one of the world's largest energy consumers.

Germany is the third largest carbon dioxide emitter in the OECD, behind the United States and Japan. Germany has a strong commitment to protecting its environment. It has actively promoted the use of renewable energy, both under the Kohl government with the Electricity Feed Law and under Schroeders' government with eco-taxes. However, Germany's reliance on coal, particularly brown coal, for electricity generation and the heavy industrialization of the economy has lead to serious problems with air pollution, acid rain and habitat degradation.

Germany ratified the Kyoto Protocol on climate change in May 2002 however the EU has decided to meet its Kyoto obligations as a whole, rather than individual signatories. Under the EU's burden-sharing program, Germany must cut its carbon dioxide emissions by 21% relative to the 1990 baseline during the 2008-2012 commitment period.

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.

The test was a joint effort between Smartcool Systems Inc., Smartcool Systems Australia Pte. Ltd, distributor for Australia and New Zealand, Smartcool Systems Asia Ltd., distributor for the Philippines and Concepcion-Carrier Air Conditioning Company of Manila, Philippines.

"This is extremely important for Smartcool as the success of this test has opened up a significant new market to the company," stated Chris Lefaivre, VP, Sales and Marketing. "We are now able to approach many clients that utilize centrifugal chillers with the confidence that we have a green technology that will allow them to simultaneously reduce their electrical costs and carbon footprint."

To move deeper into the large compressor markets of both rotary screw and centrifugal compressors, Smartcool International has recently released a new module to complement the ESM™ Network Control Module. This Intelligent Interface Module (IIM) is specifically designed to interface with large chiller air conditioning systems like the one in WalterMart as well as large, ammonia based refrigeration systems. With the positive outcomes seen at installations in the UAE and Australia, Smartcool is confident that the approximately 10% of the HVAC market which is made up of rotary screw and centrifugal compressors, that previously could not utilize Smartcool's technology, can now benefit from the ESM™ product line.

"We are seeing commodity prices increase which impacts the price of electricity generation," added George Burnes, President of Smartcool Systems Inc. "Coal prices are soaring, oil and natural gas prices are on the rise and there has been a steady growth in the worldwide demand of power. These factors are forcing utilities to pass the increased costs down to their customers like WalterMart by increasing electrical rates. Companies are now looking for innovative, green technologies like Smartcool's ESM™ to lessen operating costs and increase profits through the reduction in HVAC energy consumption.

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.

In conjunction with our previous news release dated March 11, 2008, this equipment will be utilized to complete Phase 1 of a multi-site rollout for Stockland Corporation Limited, Australia's largest and most diversified property developer (www.stockland.com.au).

"The first order for 42 systems allowed us to complete the initial installations for Phase 1 of this project which went very well," comments Chris Rogerson, President of Smartcool Systems Australia Pty. Ltd. "These next 20 systems will enable us to complete Phase 1 and deliver the energy savings to the Stockland Corporation that was indicated in the vigorous testing of the ESM™. We are looking forward to working with Stockland to develop the installation plan for Phase 2 and Phase 3 of this project in the coming months."

"Like other distributors within our network, SSC Australia has developed a strong technical team that allows for Smartcool's ESM™ energy reduction technology to be installed and maintained to the highest standards," added George Burnes, President. "We are seeing our technology being installed for clients that are global leaders in their field. We are extremely pleased that such companies, who rely on refrigeration and air conditioning applications to operate effectively, turn to Smartcool's technology to provide the cost and energy savings they are looking for."

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.

"The cost of power is soaring in both these regions and companies are committing to energy efficiency programs to control their operating costs," states George Burnes, President of Smartcool Systems Inc. "The U.A.E. has realized that they are one of the highest users of electricity per capita in the world and have therefore committed massive investment in both renewable energy and energy efficiency programs."

It was announced at the World Future Energy Summit in January 2008 that the U.A.E. will be investing US$15 billion into alternative and clean energy initiatives as well as efficiency programs.

"The size of this sector is massive and it is extremely encouraging that more and more companies are turning to Smartcool's ESM™ technology as an integral part of their cost control initiatives. TECC Services has a very strong foundation in this region and have developed a sales strategy that is starting to prove successful. We anticipate a strong year in this region," George Burnes added.

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.

The equipment has been ordered by Ecosave for Stockland Corporation Limited, Australia's largest and most diversified property developer. The systems will be rolled out across Stockland's Australian retail portfolio, as part of the company's commitment to corporate responsibility and sustainability (www.stockland.com.au).

"We are very pleased that we are moving forward on the project," comments Chris Rogerson, President of Smartcool Systems Australia Pty. Ltd. "Our geographic region is extremely conscious of the requirements to reduce carbon emissions. Delivering a product that addresses this issue as well as generating significant energy reduction and economic savings provides us with an excellent growth opportunity in this marketplace."

"This is a major step forward for Smartcool in Australia and further endorses our energy reduction technology," added George Burnes, President. "We have been testing the Energy Savings Module™ with some significant companies and the results we have produced have allowed these companies to make a decision to progress with a multi-site rollouts. The outlook is very encouraging."

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.

The equipment ordered will be utilized by Smartcool Systems UK (the UK sub-distributor) to initiate the first phase of a multi-store rollout of this energy reduction technology for a large grocery chain based in the U.K. Smartcool UK has already completed similar installations with Tesco Express stores throughout the United Kingdom and has exceptional technical and support experience. Smartcool UK is anticipating significant growth in 2008 from additional large store rollouts and from many small and medium sized UK based businesses that are looking for energy saving solutions provided by the ESM™ technology.

TECC Services has an aggressive plan to leverage their investment through a sub-distributor network that is penetrating attractive markets in Europe and the Middle East. These are markets that are highly motivated to adopt energy reduction technologies due to high cost of energy and environmental reduction legislation.

"We are very pleased with the advancements that are being made by TECC Services in their regions", states George Burnes, President of Smartcool Systems Inc. "They have invested a lot of resources to secure the business opportunities that are now presenting themselves both directly and through their network of sub-distributors."

"Smartcool has directly, and through its ever growing global distribution network, been able to install its ESM™ technology for pilot purposes in multiple locations and in varying vertical markets. We are now at the point where these pilots are being completed and our energy savings proposals are being considered. We are very happy with the savings that have been provided through this process and feel confident that our clients will look to benefit both economically and from an environmental perspective from the installation of our energy reduction technology."

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.

Smartcool evaluated BDI's facility and calculated electricity consumption reduction of approximately 370,000kWh per annum for the operations. This will provide for approximately $50,000 annualized cost savings and reduce annual greenhouse gas emissions by just less than 500,000lbs. This can be equated to providing electricity to 35 homes per annum and the greenhouse gas reduction is equivalent to planting approximately 271 acres of trees.

The installation site is a full service dairy production facility including ice banks, manufacturing, cold storage area, ice-cream freezing and container refrigerators. In addition, Smartcool is installing an ESM™ to further maximize the efficiency of the compressors servicing the corporate offices air conditioning system.

"This installation represents one of Smartcool's largest single site installations the Company has done over the last 12 months," states George Burnes, President. "Furthermore, there is potential for further expansion into other facilities within this beverage conglomerate."

About Barbados Dairy Industries Ltd.:

Barbados Dairy Industries Ltd. is a subsidiary of Banks Holdings Limited ("BHL") one of Barbados' most successful public companies and the island's largest beverage conglomerate. BHL produces leading international brands under license such as Coca-Cola, Sprite and Guinness; local originals like Frutee and Tiger Malt; and their signature product - Banks Beer, Barbados' best loved lager. BHL offers juices, juice drinks, fresh milk and cultured products including yogurt, ice cream, sour cream and cottage cheese.

BDI brings to the consumer a wide range of pasteurised, evaporated and UHT long-life milks and juices in a variety of flavours. Cultured products such as yogurts, ice-cream and cottage cheese are also available. Through these quality offerings, and spirited market penetration the island's lone dairy has established its products as a staple on the Barbadian table. BDI's "Pine Hill" brands have been able to gain a foothold in 13 markets including the United States tri-state area. Airline flight kitchens and cruise ships are also regular patrons. For more information, please visit www.banksholdings.com.bb.

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.

CRR's first project has already been installed with Blue Bell Creameries, Brenham, Texas. Blue Bell, who is currently celebrating their 100th Anniversary, ranks as one of the top three best selling ice creams in the United States and has over 50 production and sales locations in the South-Eastern U.S. The first installation in the Blue Bell facility will provide data confirming the level of savings available through the install of Smartcool's technology. Upon successful completion it is anticipated that Smartcool's ESM™ will be installed throughout the Blue Bell Creameries network.

"Smartcool's Energy Savings Module™ Technology is a perfect fit into our existing suite of products and services", states Dan Baker of Combined Refrigeration. "We are committed to servicing our existing client base with the best of breed controls and energy management products within the HVAC & R sector, the ESM™ surely does that. Our initial pilot project has been installed with Blue Bell and the evaluation period is well underway, we are confident it will provide the energy savings that have been experienced in other Smartcool installations."

"Combined Refrigeration has a significant presence in the Air Conditioning and Refrigeration sector and is exactly the kind of sales and servicing group Smartcool is looking to align ourselves with", states Andy Stanfield, General Manager of Smartcool Systems USA. "With their experience and strong technical staff, we feel very confident that the ESM™ will be sold and supported to the highest standards and we are very excited that our technology will be introduced to their existing client contacts."

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.

Walter Mart, who currently operates 14 shopping malls with a further 3 under construction, forms part of the Abenson Retail Group, the Philippines largest appliance retail chain with over 70 stores nationwide. The Abenson Group also includes other super store retail outlets such as, Abenson (consumer electronics and home appliances), Avant (lifestyle electronics and appliances), Electroworld (computers and electronics) and Abea (modern lifestyle furniture).

The Abenson Group has committed to help develop strong communities from both an economic and environmental standpoint and Smartcool's ESM(tm) forms an integral part of this commitment. The ESM(tm) will initially be installed in the Walter Mart chain of malls and upon completion; a further rollout within the Abenson Group will be evaluated.

"The Philippines is an ideal location for our energy reduction technology to be installed," states George Burnes, President of Smartcool. "With high temperatures and high humidity the requirement to power air conditioning and refrigeration applications is great. When you include the high rates being paid for electricity in the Philippines one can see the enormous economic benefits that can be generated using our ESM(tm)."

"The Philippines provides a very large opportunity for Smartcool and in Smartcool S.E. Asia we have a distributor with a significant presence in this region and strong technical expertise in order to take advantage of this market opportunity," added Chris Lefaivre, Smartcool's Vice President of Sales. "In addition to this particular initiative, the distributor has developed many other relationships in the region in several other sectors. These vertical markets include supermarkets, cold storage facilities, manufacturing plants, property management groups and commercial buildings. With several other testing programs underway, we are confident that Smartcool S.E. Asia has the expertise to make the ESM(tm) a success in this region."

About Smartcool S.E. Asia:

Smartcool S.E. Asia was incorporated for the purpose of selling, marketing and distributing Smartcool's technologies in Asia. The management group has vast experience assisting companies to develop strategies for entry into the Asian market place by offering professional market research and competitive analysis enabling the implementation of well thought-out development plans. With engineers, sales people and technicians working from offices in Manila, and a solid reputation within the energy efficiency/environmental community, Smartcool S.E. Asia is well positioned to take advantage of opportunities in this region.

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.

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.

Mr Frey has over twenty years experience working within the electronics sales and distribution sector. Most recently Mr. Frey has been responsible for sales and distribution for Leuze Lumiflex. As Regional Sales Manager he was responsible for direct sales and distribution for seven states in a variety of electrical product lines. Previous to that, Mr. Frey has spent nine years at Omron Electronics LLC. At Omron Mr. Frey held a variety of positions but his key accomplishments included the development of cross functional sales initiatives which led to significant growth in sales within five marketing positions. Mr. Frey also developed strong sales initiatives leading to more effective post and pre-sales support resulting in stronger distribution channels.

"As we develop our market presence in the U.S., it is imperative that Smartcool has the necessary infrastructure from a sales, distribution and technical perspective to support the clients with which we expect to do business," comments George Burnes, President of Smartcool Systems Inc. "With the employment of Andrew Stanfield and Mike Frey, we have two individuals with a wealth of experience in all these areas which will surely benefit Smartcool and more importantly develop a further level of comfort for those doing business with us."

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.