Mr. Steven Martin reports

SMARTCOOL'S ISRAELI DISTRIBUTOR INSTALLS ESM AT SHUFERSAL, THE LARGEST SUPERMARKET CHAIN IN ISRAEL

Smartcool Israel, the exclusive distributor of Smartcool Systems Inc.'s ESM (energy saving module) products in Israel, has completed a successful installation and has already confirmed significant energy savings at Shufersal. The installation was performed on both high-temperature and low-temperature refrigeration racks, which produced savings resulting in a 12-month payback. In addition, an ESM was installed on the air conditioner, which produced an 18-month payback.

Shufersal, formerly Shufra-Sal and commonly known as Super-Sol, is the largest supermarket chain in Israel with 248 stores and 12,400 employees. Danni Maoz Zur, the engineer from Shufersal, in charge of refrigeration and air conditioning, stated: "The results from the Smartcool technology are very impressive, providing significant reduction in our operating costs for both refrigeration and air conditioning. The reduced run time of our compressors should result in a longer life expectancy of our equipment. We saw no impact on temperature at the site. The additional benefit of the reduction in our carbon footprint is very important to our goal of making our company greener."

Itzchak Fuchs, president of Smartcool Israel, stated: "Since embracing the Smartcool technology, we have seen very good results across many applications. This is [the] first time we have had the opportunity to work with a national company with its brand recognition. As we [move] forward with a rollout to more [facilities], it will help strengthen our marketing efforts in the territory." The savings at the first site were 332,260 kilowatt-hours per year. When projecting that across all sites, it provides a significant economic benefit to Shufersal.

Steven Martin, executive vice-president for Smartcool, stated: "Smartcool Israel has put together a strong team of sales and technical staff and have been gaining recognition in the market. Securing a client like Shufersal will enhance the opportunity to leverage the results and benefits as they expand their marketing initiatives. Our experience in this market vertical with customers like Sainsbury in [the United Kingdom] provides comfort to newer customers in making commitments to spending capital on our energy efficiency technologies."

We seek Safe Harbor.