Sofame Delivering Multiple Projects, Establishes Sofame Energy in Chicago, Reports Q3

SOFAME NEWS UPDATE

Sofame is Delivering Multiple Energy- Efficient, Industrial Heat Recovery Projects

Montreal, September 13th, 2010 (TSX-V: SDW) -- The Percotherm heat recovery unit destined for a large tissue paper plant in Mexico shipped in July and has been installed successfully. The unit is delivering hot water at 180F for the customer and is performing slightly better than expected. A second Hybrid Percomtherm unit with integrated natural gas fired burner was refurbished for a sugar refiner and delivered in August. Start-up of that system is expected in late September. A third unit for the Delaware plant of a major international pharmaceutical manufacturer will be delivered in September. The Sofame Steam Pump designed to reduce NOx emissions at a university central steam plant in New Jersey is in the final phases of detailed design and will go into manufacturing in September.

Increasing corporate interest in industrial energy efficiency in the United States began to translate into orders for Sofame Technologies in April 2010. By July Sofame had confirmed $2.4 million in new sales consisting of several orders. Some challenges raised by the increasing demand for Sofame's products have been addressed by reducing operating costs, relying on outsourcing and increasing quality and productivity. Sofame is receiving strong support from its industry partners in the United States and Canada.

Chicago-based Sofame Energy Names Directors

Sofame's products can now be made in America to help potential Sofame Technology customers qualify for local grants and subsidies.

John Gocek, President and CEO of Sofame Technologies stated, "We fully intend now to align with partners who can assist with the delivery of major turn-key projects."

Sofame Energy's Board of Directors will consist of one member each from QED Connect and Sofame Technologies. Tom Makmann, President of QED, and John Gocek, President of Sofame Technologies will be joined by two independent directors, James Murphy and Thomas Gruber, who Sofame Energy expects will provide complimentary experience to support the rapid business development of Sofame Energy in the United States.

Mr. James Murphy brings extensive knowledge of the ethanol, biomass-to-energy and carbon markets as well as an entrepreneurial attitude well-suited to the emerging renewable energy industry. Mr. Murphy is a founding board member of EPCO which has produced and distributed liquid CO2 captured primarily from ethanol producers for over 20 years. Jim also served in several leadership posts at the Chicago Board Options Exchange, including as New Products Chairman, and as Chairman of the Stock Selection Committee. He is currently President of Carbon Green LLC, a bioenergy developer and carbon credit aggregator, and Chairman of Carbon Green BioEnergy LLC, which recently purchased and re-started a 50 million gallon per year ethanol facility in Lake Odessa, Michigan. Mr. Murphy holds a Bachelors degree from Marquette University in Political Science and Economics, where he was an Evans Scholar.

Mr. Thomas Gruber is a CPA with more than 30 years of experience as CFO and in other executive roles with Fortune 500 and smaller public companies in numerous sectors including technology development and applications, manufacturing, retail, distribution, franchising (nationally & internationally), financial services, real estate investment and management, and government contracting. Mr. Gruber is currently the Chief Financial and Chief Operating Officer of I/OMagic Corporation. Previously he was a Partner in a private investment group specializing in management and leveraged buyouts. Prior to that time, Mr. Gruber was President and Chief Financial Officer of nStor Technologies (AMX), a manufacturer and developer of enterprise data storage hardware and software. He has held senior positions (CFO, COO) at various public companies; Wireless Power Group (NASDAQ), Signature Lighting, Inc. (NASDAQ), Western Digital Corporation (NYSE), Datatron Inc. (NASDAQ), Gould, Inc. (NYSE). Mr. Gruber resides is San Diego, California, and holds a Bachelors degree in Business Administration and Accounting from Ohio University and a Master's in Business Administration from Pepperdine University.

Sofame Reports on Q3 and Gives Outlook

Sofame recorded sales of $318,976 for the third quarter ending June 30th, and a gross margin of $62,908 (19.7%). The third quarter net loss of ($299,809) includes one-time financial expenses of $52,855 related to registration of the $250,000 bridge loan and compares to a ($448,353) loss for Q3 in 2009. Operating Expenses for three months were cut to $362,717 compared to $1,102,172 for Q3 in 2009. Expense control and increased orders are two of the reasons why in a subsequent event, the Corporation concluded an agreement with debenture holders who voted unanimously to convert their debentures to common shares. Under the agreement to be approved by the TSX Venture Exchange, $1,525,000 in debentures will be converted to shares at $0.05 cents, and each share will be accompanied by a warrant to purchase one additional share at $0.10 cents. The Company is also pleased to report that a cease trade order affecting management and insiders was removed after the company met its report filing and continuous disclosure requirements.

From July 1, to August 16th, 2010 the Company signed new contracts totalling $1,297,375 to bring the confirmed order backlog to $2.4 million. These orders are currently scheduled to be executed during the fourth quarter of fiscal 2010 ending September 30th and the first quarter of fiscal 2011 ending December 31, 2010.

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.