ThermoEnergy Corporation Signs $1.1 Million Contract to Provide Ammonia Recovery System at Indonesia's Largest Power Plant

   ThermoEnergy Corporation Signs $1.1 Million Contract to Provide Ammonia
              Recovery System at Indonesia's Largest Power Plant

System Selected by Paiton Energy as the Most Cost-Effective and
Energy-Efficient Solution

PR Newswire

WORCESTER Mass., Oct. 15, 2012

WORCESTER Mass., Oct. 15, 2012 /PRNewswire/ --ThermoEnergy Corp. (OTCBB:
TMEN), a diversified technologies company engaged in the development and sales
of wastewater recovery and power generation technologies, has announced that
it has signed a $1.1 million contract to provide an ARP (Ammonia Recovery
Process) system at Paiton Energy's new Paiton 3 power station located on Java
Island. Paiton 3 is the first super-critical coal unit in Indonesia and the
largest and most efficient coal-fired generating unit on the Java-Bali grid.

(Logo: http://photos.prnewswire.com/prnh/20100816/CL50460LOGO )

The ThermoEnergy ARP system will separate ammonia from the power plants'
condensate polishing system regeneration wastewater allowing the plant to
recycle the water for steam generation and recover aqueous ammonia for use in
the plant's pollution control systems.

After a comprehensive evaluation by Paiton Energy and consulting engineering
firm, Burns and Roe, ThermoEnergy's ARP system was selected as a significantly
more cost-effective and energy-efficient alternative to traditional air
stripping technology. In addition, the ARP system offers a fraction of the
footprint that would have been required to handle the same capacity with air
stripping towers.

Manufacturing on the ThermoEnergy ARP system will begin in early Q4 2012, with
onsite installation planned for Q2 2013. The Company was also successful in
obtaining project financing for the order.

"ThermoEnergy wastewater recovery technologies continue to find new
applications in the energy sector," said ThermoEnergy Chairman and CEO, Cary
Bullock. "We are making significant inroads into oil & gas hydrofracking and
biogas production, and we are extremely excited by this first foray into a
potentially huge power generation market."

As part of its marketing strategy in Asia, ThermoEnergy recently signed an
agreement with KBK (Kyokuto Boeki Kaisha, Ltd.) (8093.T) to represent the
company in Japan and in other countries in the region.

About ThermoEnergy Corp.
Founded in 1988, ThermoEnergy is a diversified technologies company engaged in
the worldwide development, sales and commercialization of patented and/or
proprietary wastewater treatment and power generation technologies. The
company has spent nearly two decades developing sustainable water treatment
technologies that help clients operate more efficiently, save money, reduce
their carbon footprints, and meet sustainability goals. ThermoEnergy's
award-winning wastewater recovery systems provide superior process economics
and environmental compliance for a variety of wastewater treatment operations.
ThermoEnergy is represented ProfiNutrients NL and by Eurotas Technologies in
Europe, and by KBK (Kyokuto Boeki Kaisha, Ltd.) in Japan and other countries
in Asia. Additional information on the Company and its technologies can be
found on its website at www.thermoenergy.com

About Paiton Energy
PT Paiton Energy is an Independent Power Producer (IPP) established in
Indonesia in 1995. Equity is owned by Mitsui & Co., Ltd.; International Power
of the UK; Tokyo Electric Power Company, Incorporated (TEPCO); and PT Batu
Hitam Perkasa of Indonesia.

About Burns and Roe
Burns and Roe is a comprehensive engineering, procurement, construction,
operations and maintenance company providing services to private and
governmental clients worldwide. The firm's professional services extend from
project inception to operations and maintenance. Visit www.roe.com.

About KBK
KBK (Kyokuto Boeki Kaisha, Ltd.) is a Japanese trading firm established in
1947 specializing in engineering products and services. KBK provides
comprehensive services along with their products, including engineering and
technological services, for major corporations around the world. It handles a
wide range of products and merchandise, including steel, heavy electric,
chemical, and automotive products for basic industries as well as natural
resource development, environmental, telecommunications and electronics
products. Visit http://www.kbk.co.jp/en/index.html.

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 Corp.

Website: http://www.thermoenergy.com
Contact: ThermoEnergy: Ted Klowan, +1-508-854-1628, tklowan@thermoenergy.com;
or Investor Relations: Chris Camarra, +1-212-398-3487,
ccamarra@allianceadvisors.net
 
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