ThermoEnergy To Acquire CASTion Corporation

Little Rock, AR — ThermoEnergy Corporation ("ThermoEnergy") has confirmed that it will acquire CASTion Corporation ("CASTion"), an award winning supplier of wastewater treatment and chemistry recovery systems. Headquartered in Worcester, MA, CASTion is currently one of the prime subcontractors to ThermoEnergy for the assembly and installation of the Company's $11.5 million New York City ARP project currently underway. CASTion will become a wholly-owned subsidiary of ThermoEnergy, retaining its name and well earned market reputation.

"Both boards approved the conditions and terms of the transaction on Thursday, April 12," said Andrew T. Melton, ThermoEnergy's CFO. "This acquisition serves a dual purpose for the Company -- it is both a strategic market move as well as a growth vehicle for the combined companies," added Melton. Jeffrey L. Powell, President and CEO of CASTion, will join ThermoEnergy's executive team as well as remain President and CEO of the CASTion division.

"The acquisition of CASTion is linked directly to enhancing ThermoEnergy's core business of municipal and industrial wastewater treatment and its ability to capture and maintain market share," said Dennis C. Cossey, Chairman and CEO of ThermoEnergy. "The post-acquisition entity will not only be stronger financially but will provide the intellectual property and human resources capable of growing the company on a global basis." "There are significant synergies that exist between CASTion and ThermoEnergy, and the combination of the two companies presents a unique opportunity for the customers, employees and shareholders of both companies," said Jeffrey L. Powell, CEO of CASTion. "We have worked closely with ThermoEnergy over the last two years and are excited about joining the ThermoEnergy family," stated Mr. Powell.

SOURCE: ThermoEnergy Corporation