Ice Energy Reduces Smog and Greenhouse Gas Emissions by Slashing Peak Power Demand According to LA Study

Windsor, Color. - July 18, 2007 (News Release)

Ice Energy®, the premier provider of efficient energy storage products for shifting air conditioning demand, today announced the preliminary results of an environmental assessment of the company's Ice Bear® system in the Los Angeles region. Conducted by environmental consulting firm E3 Ventures, the independent analysis indicates that the Ice Bear technology's peak shifting capabilities drive significant reductions in harmful emissions including carbon dioxide and smog-producing nitrogen oxides. Preliminary results found that a single Ice Bear unit used to provide nine tons of predictable cooling capacity on a typical summer day in the LA region could reduce carbon dioxide emissions by up to 104 pounds and nitrogen oxide emissions by up to 9.28 grams each day, equivalent to more than half the emissions of a typical California passenger car.

"The E3 Ventures study reconfirms that there are significant potential environmental benefits to be gained by simply shifting the time of day that electricity is generated and consumed. By reducing the demand for peak daytime electricity, Ice Energy provides a simple, immediate means for cities and regions to capture those benefits," said Frank Ramirez, chief executive officer of Ice Energy.

"The Ice Bear's ability to store power generated during nighttime off-peak periods for use during the daytime peak demand generally shifts the demand for electricity away from "dirtier" generation sources to "cleaner" sources available during the night and can produce significant reductions of harmful air pollutants, said David Johnson of E3 Ventures. "Although these preliminary study results are focused on the LA area, we have found even more substantial benefits in a more rigorous study in the Sacramento area and would expect to find comparable environmental benefits in many other grid-constrained regions across the country."

Ice Energy's proprietary Ice Bear technology integrates with off-the-shelf commercial air conditioners to shift 95 percent of the power needed for indoor cooling to off-peak hours. The Ice Bear product efficiently makes and stores ice at night when outdoor temperatures are lower and electricity supply is more plentiful. The stored ice is then used to cool the air conditioner's refrigerant each day. This keeps the building cool and eases the strain on the grid throughout the hottest hours and periods of high peak demand. Leveraging the thermodynamic advantages of operating during cooler nighttime temperatures and Ice Energy's highly-efficient patented refrigeration system for making and melting ice, the Ice Bear unit consumes equal or less electricity than a comparable conventional air conditioning system.

The Ice Bear unit's air pollution reduction capabilities can be attributed to two major benefits associated with using off-peak rather than peak electricity in the Los Angeles region. First, the utility's base-load generation facilities used for producing electricity at night are fundamentally less polluting than the auxiliary generation sources used to meet periods of high demand. As a result, the Ice Bear units consume an energy mix equating to up to three times fewer emissions than conventional air conditioning systems. Second, high temperatures cause more electricity to be lost through transmission across the grid, sometimes as much as 15% on extremely hot days. By consuming power that is transmitted during cooler periods, the Ice Bear unit reduces waste of electricity and associated emissions. These two factors are particularly beneficial for the Los Angeles area, which suffers from frequent atmospheric inversions that trap pollution near the ground, thus exacerbating local smog levels. By consuming off-peak electricity, the Ice Bear reduces the amount of emissions contributing to pollution levels during those periods of poor atmospheric dispersion.

Ice Energy is currently working with 15 cities and municipalities in California to address peak energy demand. In 2005, the California Energy Commission approved the Ice Bear 50 module as an optional compliance measure for the California's Title 24 building energy efficiency standards. The results of the E3 Ventures study support Ice Energy's potential to assist with compliance of other recent efficiency and emission related mandates, including the Global Warming Solutions Act, AB-32.

About Ice Energy, Inc.

Ice Energy® is an energy technology company focused on energy storage and advanced cooling and refrigeration products and technologies. The company manufactures and markets a new Ice Storage Air Conditioner (ISAC) product line for residential and commercial applications that addresses the increasing demand for electricity. Ice Energy's products shift the largest component of residential and commercial peak demand -- air conditioning -- from expensive "on-peak" times of the day to "off-peak" periods, when energy is less expensive and less polluting. Recently approved as an optional compliance measure for California's Title 24 building energy efficiency standards, the Ice Bear® system provides superior cooling comfort while significantly reducing the cost of energy. For more information visit www.ice-energy.com or call 877-5-ICEBEAR.

Ice Energy and Ice Bear are registered trademarks of Ice Energy, Inc.

About E3 Ventures

William G. Rosenberg, former Assistant Administrator in the Office of Air and Radiation in the U.S. Environmental Protection Agency (EPA), and other key former EPA regulators and professional staff organized E3 VENTURES, INC. in 1993. E3 Ventures works closely with clients to develop strategic positions that go beyond compliance with environmental regulations to promote proactive approaches to address key environmental issues by building on the client's corporate goals and product lines and new or emerging technologies. E3 Ventures encourages approaches which emphasize environmental and technology leadership and the adoption of market-based strategies in assisting companies to develop strategic environmental policies that meet core business objectives and public policy goals in ways that that can be supported by a broad range of interests, including environmental regulators, progressive companies, and environmental advocates.

Rosalind Jackson

Antenna Group (for Ice Energy)

415-977-1923

rosalind@antennagroup.com