update of progress of invention

36 COMPUTER ROAD, YATALA, QUEENSLAND 4207
TEL: 61 (7) 3297 4444 ◙ FAX: 61 (7) 3297 4455
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22 May 2008
Company Announcements Office
Australian Securities Exchange Limited
FOR RELEASE TO THE MARKET
UPDATE ON PROGRESS OF INVENTION
Cool or Cosy is pleased to now be in a position to provide a further update on the progress of
development of its proprietary environmentally friendly energy storage technology.
Research and development efforts by the company under its total comfort solutions strategy has
yielded the development of significant environmentally friendly energy storage technology
inventions for which patent protection has been sought.
The new inventions comprise a base unit heat pump hot water delivery system and associated
applications which can be used as stand alone energy storage devices or in the form of an
integrated system.
A recently completed engineering peer review process of the base unit has provided encouraging
signs regarding the future market potential of the inventions.
Preliminary testing has, for example, identified a number of important advantages of the base
unit over existing conventional electric displacement and heat pump hot water systems, some of
which include:
_ significant reduction in energy consumption of up to 3.3 MWh per annum;
_ water release at a constant, predictable temperature;
_ reduced size based on a compact, modular format generating space saving;
_ no water storage avoiding bacteria risk;
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_ elimination of conventional hot water storage tanks; and
_ absence of pressure storage eliminating the risk of rupturing water tanks.
Cool or Cosy will now initiate completion of pre-production prototypes of the base unit which
prototypes will be subjected to preliminary field trials and further testing in the coming months
before proceeding further towards commercialisation of the base unit concept.
Based on the current configuration and initial pre-production costing the company anticipates
that the initial base unit will be highly competitive on price compared to existing hot water
delivery systems in a replacement market in Australia estimated at 800,000 units per year.
In addition, the pre-production prototype will be subjected to testing for renewable energy
credits (“RECS”) under the Federal Government’s Mandatory Renewable Energy Target
(“MRET”). “RECS” are tradable instruments created under the Federal Government’s
Mandatory Renewable Energy Target (“MRET”).
Current market prices for RECS are $50/MWh with forward contracts for 2009 and 2010
trading at $55/MWh and $60/MWh respectively.
Other related applications involving the new technology will also be developed by the company.
The Board will continue to provide updates on the progress of the development, product
prototype trials and prospective commercialisation of the base unit and related applications
involving the company’s proprietary inventions.
David Hoff
Chairman
Contact regarding announcement:
Mr Ron Sanders, Managing Director: (07) 3297 4444
36 COMPUTER ROAD, YATALA, QUEENSLAND 4207
TEL: 61 (7) 3297 4444 ◙ FAX: 61 (7) 3297 4455