ThermoEnergy's New Biogas Process Gets Patent; ``New Process Represents Significant Advancement in Treatment of Animal Waste, Municipal and Industrial Wastewater Treatment''.

Business Editors & Energy Writers

LITTLE ROCK, Ark.--(BUSINESS WIRE)--March 25, 2002

ThermoEnergy Corporation (OTCBB:TMEN) announced today that the U. S. Patent and Trademark Office has allowed all claims for its latest renewable energy technology known as "Enhanced Biogas Production From Nitrogen Bearing Feedstock's." When combined with the Company's patented Ammonia Recovery Process (ARP), this new invention will allow wastewater treatment plant operators to optimize plants' performance for new or existing plants while removing and reclaiming ammonia as a useful product. Immediate applications for this new process include the production of energy from the anaerobic digestion of wastes from municipal wastewater plants, selected industrial wastewater treatment plants and large pork and/or dairy operations.

Residuals left over from the process and treatment of human or animal waste is classified as "biomass." Biomass materials contain nitrogen in the form of proteins and amino acids. When biomass is broken down during the wastewater treatment process, methane and carbon dioxide are produced along with ammonia. The methane and carbon dioxide are gaseous and separate from the digestion mixture while the ammonia remains. Over time, this causes an imbalance in the carbon/nitrogen ratio, which inhibits the biological process, significantly reducing the overall efficiency of the wastewater treatment plant. ThermoEnergy's new process removes the ammonia from the wastewater treatment process enabling optimum performance. The ammonia is then converted into ammonium sulfate, a commercial grade fertilizer, which can be sold on the world market.

This Biogas Production technology not only enhances and complements the Company's existing clean water technologies, but gives the Company a distinct advantage in pursuing opportunities in the area of large confined animal farming operations. This industry is coming under increasing pressure from federal and state regulatory authorities to put environmental controls in place that will eliminate the many waste discharge problems that have plagued this industry over the past decade. ThermoEnergy is currently collaborating with North Carolina State University to incorporate its new biogas technology into a comprehensive solution for large pork and diary operations.

ThermoEnergy is a diversified technologies company engaged in the commercialization of patented and/or proprietary municipal and industrial wastewater treatment and power production technologies. Additional information on the Company and its technologies can be found on its website at www.thermoenergy.com.

This press release includes statements that may constitute "forward looking" statements, usually containing the word "believe", "estimate", "project", "expect" or similar expressions. Forward looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the company's proudct and services in the marketplace, competitive factors, changes in regulatory environments and other risks detailed in the company's peridoic report filings with the securities and exchange commission. By making these forward looking statements, the company undertakes no obligation to update these statements for revisions or changes.