Sofame Finances US Joint Venture, Wecomes New Directors

SOFAME NEWS UPDATE

Dutchess Capital Agrees to $10 Million Equity Line

Montreal, July 12th, 2010 (TSX-V: SDW) -- On June 8th, Sofame entered into an Equity Line Facility in the amount of $10,000,000 with Dutchess Opportunity Cayman Fund, based in Boston, Massacheusetts. During the 36-month term of the Equity Line Facility, Sofame shall have the option to sell to Dutchess up to 17,500,000 shares of common stock authorized for the line. Each drawdown will be priced based on the then-current stock price in accordance with an agreed-upon formula. Sofame will control the timing and amount of any share sales to Dutchess. Sofame will file an annual information form and short form prospectus in Canada, which will be subject to required corporate and regulatory approvals, including that of the TSX Venture Exchange and the Autorité des marches financiers. No commissions will be paid by Sofame as a result of signing the Equity Line Facility. Recent orders, improved operating results, signature of the Joint Venture Agreement with QED Connect, and the completion of this financing facility are all waypoints in a predetermined roadmap to success. This funding will allow management to focus its efforts on the Company's growth as it plans to use proceeds to bring Cleantech manufacturing jobs to the United States.

Sofame Welcomes New Directors to its Board

Sofame is pleased to welcome three new members to its Board of Directors at the Annual Meeting held June 16th in Montreal, Canada. Josh Costell, Pierre Grand'Maison and Aurelio Useche joined the Board. Robert Presser continues as Chairman, and Fahim Samaha, Sofame's partner in Europe, also remains on the Board. Kebir Ratnani, a long-standing Sofame Board member, and Luc Mandeville, Sofame's founder, both resigned from the Board to create opportunities for new members. Ratnani and Mandeville remain important shareholders, and Mandeville continues as Sofame's Chief Technology Officer and a key engineering resource for major customer accounts.

Robert Presser, Sofame's Board Chairman stated, "Each new Director brings world class experience in technical sales, HVAC equipment manufacturing and corporate finance to Sofame. This Board is excited about leveraging Sofame's strengths to seize a variety of opportunities across North American and European markets."

Costs Slashed by $437,054 in Last Quarter

Sofame reduced operating costs by $437,054 in Q2 2010 compared to Q2 2009. Despite a slow down in shipments due in part to the dramatic restructuring of operations, Sofame was able to improve EBITDA to a sustainable level. The new cost structure and outsourcing of some manufacturing is providing a boost to quality and improving Sofame's competitive advantage in terms of pricing and lead times. Sofame received support from its supply chain partners and customers throughout the second quarter. As a result Sofame was able to close $985,000 in new contracts from April 1st to May 31, 2010. Lower costs and an increase in confirmed orders position Sofame for further improvement in earnings in the second half of the fiscal year. Sofame has also reached an agreement with a partner in the United States to create a US joint venture company. The joint venture plans to leverage Sofame's growing revenues in the US to attract additional capital required to fund profitable growth in that market. The new company will be eligible to supply energy efficiency equipment under the Buy America provisions of the American Recovery and Reinvestment Act.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of any statements herein.