Sofame Partners with Autodesk for Design Tools, Other Company Developments

SOFAME NEWS UPDATE

Montreal, February 4th, 2011 (TSX-V: SDW)

Sofame and Autodesk Partner-up

AUTODESK HAS COMMITTED A CONSULTING TEAM TO ASSIST WITH THE DEVELOPMENT OF A STANDARDIZED DESIGN AND FABRICATION PLATFORM

FOR SOFAME'S INDUSTRIAL ENERGY EFFICIENCY SYSTEMS

Sofame® has turned to Autodesk® to solve a pressing business need: Growing its presence in the competitive global marketplace. Sofame's sights are set on offering rapid delivery of its award winning industrial boiler efficiency systems. Sofame's engineers have effectively migrated from 2D design to 3D design over the last few years using a combination of AutoCAD® Mechanical and Autodesk® Inventor® to engineer and draw customized system designs. In 2010, Sofame began a program of outsourced manufacturing, which required product redesign and standardization to speed-up manufacturing, eliminate errors, and above-all, reduce costly hours of manual work.

Autodesk Consulting will now work with Sofame to dramatically improve its engineer-to-order (ETO) business processes using new Autodesk solutions. By adopting Autodesk Intent™, Sofame will further reduce engineering and drafting time of its customized products to shorten sales cycles. Autodesk® Vault will enable Sofame to effectively manage its 2D and 3D designs and work-in-process, while Autodesk® Streamline will permit sharing of designs and technical manuals with both employees and Sofame's network of distributors. By eliminating the lag time on the piping and structural side, and producing vessel drawings and P&I D's more quickly, Sofame plans to handle more projects with the same number of people. As a result, Sofame expects to vastly improve communication among its customers, consulting engineers, sales representatives, in-house applications engineers and the shop floor.

Sofame is frequently called upon to design a custom system and deliver detailed specifications and drawings to its customers even before their purchasing decisions are made. In the months ahead, this will entail collection of accurate information from customers faster and more accurately than ever before. Sofame's automated process will take in customer data and perform hundreds of engineering calculations behind the scenes. The same detailed output will help the Company with its sub-contractors to obtain accurate pricing and lower costs.

According to John Gocek, President of Sofame, "Shortening the sales process and reducing engineering time is a huge win for Sofame."

NASDAQ:ADSK

Sofame Product Benefits

Sofame offers six products that heat industrial quantities of water at proven fuel-to-water efficiency of 94% to 99% using the Direct Contact principal. Most of Sofame's products also recover waste heat from flue gases of existing industrial gas-fired boilers and cogen systems, making them more efficient, often by more than 20%. Sofame's engineers are experienced in identifying the heat sinks to re-use the recovered energy.

Sofame Closes $300k of $500k Capital Raise

Sofame announced Friday, January 28, 2011, that it has issued by way of private placement 6,000,000 non-brokered units at a price of $0.05 per unit to accredited investors. Shares are subject to a 4-month hold period. Each tranche of $5,000 is accompanied by 100,000 common share purchase warrants, entitling the holder to acquire one additional common share of Sofame at an exercise price of $0.10 until January 27th, 2016. Pinetree Capital, an insider in Sofame, acquired 2,000,000 common shares and 2,000,000 common share purchase warrants. After this placement, there are 147,658,652 issued and outstanding common shares of Sofame. Proceeds will be used for working capital including completion of a large order in-house and for product marketing activities.

According to John Gocek, President and CEO, "The response from investors gives us cause for great optimism. Sofame's prospects for sustained revenue growth are excellent this year."

Corporate News and Developments

Progress in the pursuit of new contracts was encouraging in the latter half of 2010. The current short-term sales pipeline includes twenty-six proposals and four leads valued tentatively at $8.9 million. While several Sofame representatives including Blake Equipment Group, Superior Boiler of Hamilton, Ontario, Tozour Energy Services in Pennsylvania, New Jersey and Delaware, Stoermer Industrial Energy Systems, Hughes Machinery and Equipment, Brady Trane Service, Long Building Technologies and Mechanical Products of Nevada already quote turn-key projects, three of these new Sofame proposals include the now available installation option. The total active project database includes over 100 projects valued incompletely at $28,153,700 including several preliminary leads which have not been assigned a value. The capital spending environment already in 2011 is showing signs of improvement. Additionally, federal stimulous grants to encourage industrial energy efficiency investments are still available through the end of this year in most states.

It was announced on January 18th that Pierre Grand'Maison and Aurelio Useche tendered their resignations from the Board of Directors. Both worked diligently since June to improve the corporation's balance sheet. As testament, in the same press release it was anounced that over $525k in current liabilities consisting of supplier debt, professional fees, consulting fees and payroll is also being converted to common shares. During Pierre's and Aurelio's tenure, Sofame converted over $2 million of debts into common shares, reduced operating expenses by over sixty percent and closed $2 million in purchase orders. The Board achieved its short-term objectives and we would like to express our sincere gratitude on behalf of all stakeholders.

Sofame has begun a search for new Directors to replace the departing members. With the new non-exclusive preferred equipment installer relationship in the USA, Sofame is intensifying business dealings there, and we are in discussions with potential new investors as well as new Director candidates.

The Annual Report for the year ended September 30, 2010, was not released as scheduled on January 28, 2011. Sofame expects to release it no later than March 15, 2011. The financial statements for the quarter ending December 31, 2010 will be released by March 22, 2011. SOFAME has been granted its request that the securities regulatory authorities issue a temporary order to prohibit certain directors, officers and insiders of SOFAME from trading in securities of SOFAME. Under a management cease-trade order, except for directors, officers or insiders, everyone can trade freely in Sofame's securities.

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.