ThermoEnergy Reports 51% Increase in Sequential Revenue for Second Quarter 2011

WORCESTER, Mass., Aug. 11, 2011 /PRNewswire/ -- ThermoEnergy Corporation (OTCBB: TMEN), a diversified technologies company engaged in the municipal and industrial wastewater treatment and power generation technologies, today announced financial and operational results for the second quarter ended June 30, 2011.

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Mr. Cary Bullock, President and Chief Executive Officer of ThermoEnergy said, "Our second quarter results reflect significant improvement in the company's business. Our management team is pleased that we were able to dramatically grow our sales. Throughout the quarter we successfully expanded our global sales pipeline and signed a sales representative agreement in China for the commercialization of our municipal and industrial wastewater treatment technology.  This new sales representative agreement has already proven to be a major success as it led to the signing of a LOI with a large Chinese municipality.  We are also now poised to start the next phase of our New York City project which will produce $13.4 million in revenue over the next several quarters. These steps taken during the quarter further position the company for significant growth later this year and in 2012."

2011 Second Quarter Operational and Financial Highlights:

• Increased Revenues 51% as compared to prior quarter.
• Reduced per share loss by 45% in Q2 2011 as compared to Q2 2010.
• Strengthened the balance sheet by raising $4.5 million in a new equity and by eliminating $6.1 million of convertible debt. Deal to close in the third quarter.
• Began the $13.4 million manufacturing phase of our New York City contract.
• Signed sales representative agreement with China partner to sell our wastewater treatment solutions.
• Signed LOI with a major Chinese municipality for ARP technology.

Mr. Bullock added, "Now that we have begun the manufacturing phase of our New York City project we expect it will assist us in attracting additional wastewater treatment projects throughout the world.  Our management team and sales force are working diligently to convert projects from our pipeline into revenue producing contracts.  We remain focused on developing key strategic relationships and expanding the market presence for our energy technology to further enhance our revenues."

Revenues for the second quarter of 2011 were $1.4 million as compared to $0.3 million in the second quarter of 2010. Revenues for the first half of 2011 were $2.4 million as compared to $1.4 million in the first half of 2010 for an increase of approximately 70% as we transitioned from legacy business to our new business model. Revenues also increased sequentially from the first quarter of 2011 by over 51%. Operating expenses increased in the first half of 2011 to $4.0 million compared to $3.5 million in 2010. EBITDA loss for the first half of 2011 was $3.1 million and $2.4 million in 2010.

Net loss attributable to common stockholders for the first half of 2011 was $0.10/share as compared to a loss of $0.14/share for the first half of 2010. Weighted average shares outstanding at the end of the second quarter of 2011 and 2010 were 56.7 million and 53.7 million, respectively.

We had cash on hand on June 30, 2011 of $2.2 million.

For additional details, please see our 2011 Form 10-Q filed with the SEC today.

Investor Conference Call

The company will host a conference call this morning at 10:00 a.m. ET. Management will make a brief presentation focusing on the company's results, strategies and operating plans. Those wishing to dial in to the call via telephone can do so at Toll Free: 1-877-941-1428. Toll/International: 1-480-629-9665 Conference ID: 4462770.

A live webcast will be available at

http://viavid.net/dce.aspx?sid=00008AD2

About ThermoEnergy

Founded in 1988, ThermoEnergy is a diversified technologies company engaged in the worldwide development, sales and commercialization of patented and/or proprietary municipal and industrial wastewater treatment and power generation technologies. Additional information on the Company and its technologies can be found on its website at www.thermoenergy.com.

THIS PRESS RELEASE INCLUDES STATEMENTS THAT MAY CONSTITUTE "FORWARD LOOKING" STATEMENTS, USUALLY CONTAINING THE WORDS "ESTIMATE", "PROJECT", "EXPECT" OR SIMILAR EXPRESSIONS. FORWARD LOOKING STATEMENTS INHERENTLY INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM CURRENT EXPECTATIONS. BY MAKING THESE FORWARD LOOKING STATEMENTS, THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE THESE STATEMENTS FOR REVISIONS OR CHANGES.

SOURCE ThermoEnergy Corporation