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IST awarded two contracts totalling $10 million

Toronto, Ontario - June 24, 2008:

Innovative Steam Technologies (IST), has been awarded two contracts totalling $10 million to supply its Once-Through Steam Generator (OTSG) units internationally.

The first contract is being executed in partnership with Macchi Steam and Power Generation of Italy, IST’s European partner. The project calls for the design and supply of two OTSG modules for Statoil Hydro, to be located 200 miles off the coast of Norway.  The single lift modular plant will be installed on the Oseberg D offshore natural gas production platform in the North Sea. The OTSG is replacing a standard drum-type HRSG which has been in operation less than ten years. Once installed, the OTSGs will recover waste heat from two 28 megawatt gas turbines and produce steam for an eight megawatt steam turbine. The project is scheduled for a May 2009 delivery.

The relationship between IST and Macchi allows both companies to apply their market knowledge and sales resources to provide assistance to each other in obtaining contracts, with IST supporting Macchi’s sales activities in the North American Market and Macchi supporting IST’s sales activities in Europe and the Middle East.  As opportunities are identified, IST and Macchi will work together to deliver the projects as appropriate in each case.

Under the terms of the second contract IST will supply an OTSG unit to Entek Electrik Uretimi A.S. in Izmit, Turkey. The OTSG unit will recover waste heat from a 48 megawatt gas turbine, with the steam produced being sent to a steam turbine and then exported to the Pirelli Tire plant. Work is already underway, with a scheduled delivery date for the unit of January 2009.  This contract will bring IST’s OTSG installations in Turkey to a total of eight, with five awarded in the last four months alone.

The new contracts bring IST’s backlog to its highest level since 2001, IST’s strongest year on record.

“The Statoil project is an important strategic step forward for IST.  It cements our strategic partnership with Macchi, as it is the first project being executed under the partnership,” said Bob Dautovich, President of IST. “And the Entek project demonstrates the strong relationships we have established in Turkey, as well as the value that IST provides to our business partners.”

IST awarded two contracts totalling $10 million

Toronto, Ontario - June 24, 2008:

Innovative Steam Technologies (IST), has been awarded two contracts totalling $10 million to supply its Once-Through Steam Generator (OTSG) units internationally.

The first contract is being executed in partnership with Macchi Steam and Power Generation of Italy, IST’s European partner. The project calls for the design and supply of two OTSG modules for Statoil Hydro, to be located 200 miles off the coast of Norway.  The single lift modular plant will be installed on the Oseberg D offshore natural gas production platform in the North Sea. The OTSG is replacing a standard drum-type HRSG which has been in operation less than ten years. Once installed, the OTSGs will recover waste heat from two 28 megawatt gas turbines and produce steam for an eight megawatt steam turbine. The project is scheduled for a May 2009 delivery.

The relationship between IST and Macchi allows both companies to apply their market knowledge and sales resources to provide assistance to each other in obtaining contracts, with IST supporting Macchi’s sales activities in the North American Market and Macchi supporting IST’s sales activities in Europe and the Middle East.  As opportunities are identified, IST and Macchi will work together to deliver the projects as appropriate in each case.

Under the terms of the second contract IST will supply an OTSG unit to Entek Electrik Uretimi A.S. in Izmit, Turkey. The OTSG unit will recover waste heat from a 48 megawatt gas turbine, with the steam produced being sent to a steam turbine and then exported to the Pirelli Tire plant. Work is already underway, with a scheduled delivery date for the unit of January 2009.  This contract will bring IST’s OTSG installations in Turkey to a total of eight, with five awarded in the last four months alone.

The new contracts bring IST’s backlog to its highest level since 2001, IST’s strongest year on record.

“The Statoil project is an important strategic step forward for IST.  It cements our strategic partnership with Macchi, as it is the first project being executed under the partnership,” said Bob Dautovich, President of IST. “And the Entek project demonstrates the strong relationships we have established in Turkey, as well as the value that IST provides to our business partners.”