Hedge Fund Manager Joins ThermoEnergy Board of Directors

J. Winder Hughes, III, founder and Managing Director of the Focus Fund, LP Has
Been Named to the Board of Directors of ThermoEnergy Corporation

LITTLE ROCK, Ark., July 30 /PRNewswire-FirstCall/ -- ThermoEnergy Corporation
(Pink OTC Markets: TMEN) an integrated technologies company engaged in the
worldwide commercialization of patented and proprietary municipal and
industrial wastewater treatment and power generation technologies, today
announced that J. Winder Hughes, III, has joined the Company's Board of
Directors.

Mr. Hughes, 50, is the Managing Director of the private equity firm of Hughes
Capital Investors, LLC. In 2000, Mr. Hughes formed the Focus Fund, LP, a
Florida-based, highly concentrated equity partnership that focuses on
publicly-traded emerging growth companies. Over the past two years, the Focus
Fund has become one of the largest investors in ThermoEnergy Corporation.
Prior to the formation of Hughes Capital and the Focus Fund, Mr. Hughes held
positions with Prudential Securities, Kidder, Peabody & Co., and Barnett Banks
of Florida.

"We are extremely pleased that Mr. Hughes accepted our invitation to join the
board of ThermoEnergy Corporation," said Dennis C. Cossey, ThermoEnergy's
Chairman and CEO. "With his extensive background in corporate finance and
investment banking, Mr. Hughes represents a tremendous resource on which the
ThermoEnergy management team can rely on."

"Given that the Company is on the cusp of commercial prosperity with its
wastewater treatment business and at the forefront of achieving value-creating
milestones with its Babcock-Thermo Carbon Capture joint venture," said Mr.
Hughes, "I look forward to working with the management team to strengthen the
company's financial stability and improve business performance for the benefit
of all its stakeholders."

About ThermoEnergy:

ThermoEnergy is an integrated technologies company engaged in the worldwide
commercialization of patented and/or proprietary municipal and industrial
wastewater treatment and power generation technologies. The wastewater
treatment technologies are consolidated in its subsidiary, CASTion Corporation
("CASTion"), a fast growing developer and manufacturer of innovative,
custom-designed wastewater treatment and chemical recovery systems for
industrial and municipal clients. CASTion's wastewater systems are currently
being used such industries as aerospace, food processing, metal finishing,
petro-chemical, refineries, pulp & paper, heavy manufacturing and municipal
wastewater. The Company designs, assembles and ships its waste water treatment
systems from a 20,000 square foot fabrication facility located in Worcester,
Massachusetts. The Company, headquartered in Little Rock, AR, has additional
offices in Jacksonville, FL and New York, NY. Additional information on the
Company and its technologies can be found on its website at
http://www.thermoenergy.com/, or http://www.castion.com/ for wastewater
treatment specific information.

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 PRODUCTS AND SERVICES IN THE MARKETPLACE, COMPETITIVE FACTORS,
CHANGES IN REGULATORY ENVIRONMENTS AND OTHER RISKS DETAILED IN THE COMPANY'S
PERIODIC 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.

SOURCE Thermoenergy Corporation

ThermoEnergy Corporation, Dennis C. Cossey, Chairman & CEO, +1-501-376-6477,
dennis.cossey@thermoenergy.com