Sofame Order Book Surging

SOFAME NEWS UPDATE

Hybrid Percomtherm® for a Sugar Refiner

Percotherm® for Landfill Gas-to-Energy Operator

Montreal, June 7th, 2010 (TSX-V: SDW) -- Sofame has received a purchase order for $131,000 to retrofit a Hybrid Percomtherm® unit as part of an energy efficiency upgrade at a sugar refiner in collaboration with a local natural gas utility. This is in addition to the $985,000 in new contracts signed in the months of April and May 2010*.

The new order arrived right after Sofame announced signature by Sofame Europe of a $250,000 Letter of Intent last week in France. That customer plans to use waste heat to evaporate leachate at a power plant where landfill gas fuels a turbine to generate electricity. Both Sofame units are designed to maximize energy efficiency. The result is a drop in natural gas consumption to reduce operating costs. Less gas burned means carbon emissions are also reduced, and those reductions are now worth money.

Airport Sells 24,203 tons of Carbon Credits

As reported in Montreal in La Presse, on June 4th 2010, the Canadian Standards Association registered the sale of 24,203 tons of carbon emission reductions by the Montreal Airport Authority. The credits were sold for $121,015 to a specialized carbon trading firm, L2i Solutions, under the Western Climate Initiative. The carbon emission reductions were recorded over 5 years from 2004 through 2009, and were the result of an extensive airport expansion project which began in 2002 and is still ongoing. As part of the $1.5 billion investment, new boilers and chillers were installed, as well as four Sofame Percotherm® heat recovery condensing economizers. The Sofame units recover waste heat in the chimneys. They condense the humid flue gases created by burning natural gas. The Percotherm® produces hot water at about 135F which the airport uses for a variery of heating requirements.

Sofame Forming Joint Venture in the United States

Signature of the joint venture agreement announced last week was a necessary step to establish Sofame as a leading supplier in the engineering and manufacture of high-efficiency direct-contact industrial hot water systems in the United States. The US company will market, distribute, sell and support Sofame's products to better service our existing network of manufacturer's representatives there. Already in 2010, a lower cost structure, partnering, and outsourcing of some manufacturing is improving Sofame's competitive advantage in terms of pricing and lead times.

The corporate presence in the United States is also expected to create new opportunities for raising the financing needed to grow. Sofame's products already qualify under the Buy America Act due to recent treaty negociations between Ottawa and Washington. The next milestone is to develop a direct relationship with the Department of Energy as an Amercian corporation.

* Previously announced in Sofame's second quarter financial statements available at www.sedar.com.

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