Cool Weather Affects Revenues; New Product To Be Introduced In February 1998.

WINDSOR, Conn.--(BUSINESS WIRE)--Nov. 7, 1997--Unseasonably cooler temperatures throughout the United States affected shipments for the period ended Sept. 30, 1997. Consequently, for the three- and six-month intervals, sales were essentially the same as last year.

The late spring and early summer is normally the period that creates market demand for space conditioning cooling products in the United States. A delay in the warming trend during this period results in lower shipments that can and did extend through the fall season; a pick-up in demand occurs when the winter heating season begins. Anticipated sales for the quarter ending Dec. 31, 1997 are projected to be lower than the current period as the company's customers are expected to adjust over-inventory positions. Shipments for the fourth quarter (ending March 1998) are expected to rebound as customers have projected strong orders for that period.

Net sales for fiscal 1998 are anticipated to be comparable to fiscal 1997's record level of $8.6 million. Further, it is anticipated that net operating income will be ahead of last year's figures.

The company is currently finalizing preparations to launch a new product, suction line heat exchangers, targeting both the contractor and high-volume OEM markets. Formal introduction is scheduled before the end of the fiscal year, with product shipments commencing shortly thereafter. The company is also investigating the feasibility of manufacturing other refrigeration-based products for distribution next year.

Gross profit margins improved in both the quarter and six months ended Sept. 30, 1996. The reduction in manufacturing costs is directly attributable to a realignment of manufacturing processes and equipment. Further improvements are expected as the company continues to strategically implement and install additional manufacturing cells. In addition, raw material costs have stabilized during the past year as a result of lower commodity prices along with other related cost reductions.

Selling, general and administrative expenses increased in both the quarter and six-month periods compared to the prior year. Additional staffing of engineering and administrative positions was completed in response to the increased level of activities and the plan to develop further cost reduction and continuous improvement programs. Sales and marketing expenses are anticipated to increase for the balance of the fiscal year to support the company's product development program.

                           Three and Six Months Ended Sept. 30,
                        Three Months Ended        Six Months Ended
                          1997        1996        1997        1996

Net Sales           $2,200,210  $2,158,978  $4,414,873  $4,437,939
Operating Income    $  171,200  $  146,932  $  330,273  $  347,593
Net Income Before
 Extraordinary Item $   70,744  $   55,156  $  133,093  $  181,893
Extraordinary Item  $       --  $       --  $       --  $  121,004
Net Income          $   70,744  $   55,156  $  133,093  $  302,897
Weighted Average
 Shares Outstanding 15,737,388  16,142,058  15,639,931  16,329,769
Earnings Per Share         NIL         NIL  $      .01  $      .02

Thermodynetics Inc. is a world leader in enhanced heat transfer technology. This technology provides higher energy efficiencies for applications in the biomedical, aerospace, marine, food and beverage and residential/commercial heating and cooling industries. The company offers tubing products supporting a wide array of heat transfer needs, including surface-enhanced tubing, single and double wall coaxial condenser and evaporator coils and heat recovery systems.

This release contains forward-looking statements relating to future financial results. Actual results may differ as a result of factors over which the company has no control, including slower than anticipated sales growth, price and product competition and increases in raw material costs. Additional information, which could affect the company's operations and financial results, is included in the company's filings with the Securities and Exchange Commission.

CONTACT: Thermodynetics

Robert A. Lerman, 860/683-2005