Thermodynetics Reports Annual Results; Turbotec Products Plc Subsidiary Appoints Two Independent Directors

Thermodynetics (OTCBB: TDYT):

   The year ended March 31, 2006 was notable in that our Turbotec
subsidiary achieved record revenues and expectations for the 2007
fiscal year is for further growth. At the same time, the Vulcan
Industries subsidiary was closed due to a number of factors and Vulcan
is now reported as a discontinued operation in the financial
statements.
   On a continuing operations basis, the Turbotec subsidiary is
growing. Turbotec is well financed having raised equity capital
through an IPO on the London Stock Exchange's AIM Market and is
trading under the symbol TRBO. Turbotec is expecting to demonstrate
continued growth in both revenues and profitability.
   The expectation for the '07 fiscal year is that new product
launches will begin to capitalize on the company's technology and
apply it to "green" applications and other sophisticated heat transfer
applications using titanium and other surface enhanced tubing. Initial
products are being developed for the reclamation of waste energy from
air conditioning, refrigeration and heat pump systems so that the
reclaimed heat can be recycled and used for a variety of purposes.
Turbotec believes that this is a major market and with the high cost
of energy, it is an opportune time to market such energy savings
products.
   In fiscal '06, net revenues advanced 20% to $18.750 million from
$15.651 million in fiscal 2005 while, on a continuing business basis,
income from operations advanced to $1.2 million vs. $0.8 million, a
50% increase and pretax income was twice that of the prior year.
   At this writing, based on the 12,806,773 shares of TRBO
outstanding, the market value of TRBO is in excess of $20 million,
corresponding to TDYT having a value for the TRBO 56.32% holding alone
of $12 million, or approximately $3/share. The calculation is based on
an exchange rate of US$1.84 for each UK pound sterling, and 4.027
million shares of TDYT outstanding.
   Two independent directors to represent the British subsidiary have
been appointed. Tom Nairn is the new Chairman and he is joined by
Robert Lowe, both of whom were appointed on June 20, 2006, and both of
whom are UK based. That brings the Board to 5, as Anthony Mirabella,
Sunil Raina and Robert Lieberman are the existing board members. Their
resumes are included in the Turbotec press release that can be viewed
on the web site www.turbotecproducts.com. It is anticipated that by
rounding out the board with Messrs Nairn and Lowe, because of their
familiarity with Turbotec's business base and the business climate in
both the US and Europe, they will help Turbotec to expand both in the
US and in Europe.
   TRBO's business is expanding in the areas of swimming pool heat
pumps, ice machines and boiler tubing. They have bolstered their staff
with new senior managers in Sales and Marketing and Product
Engineering. Additions to staffing are continuing with the intent of
supporting the growth of the company and to concentrate on continuing
improvement in operations, engineering and customer support.
-0-
*T
                                             Year ended March 31,
                                             2006            2005
                                             ----            ----
Net Sales                                $ 18,750,323    $ 16,650,800
Operating Income                         $  1,219,677    $    793,416
Income Before Income Taxes               $    850,766    $    416,226
Income From Continuing Operations        $    530,766    $    266,226
Net Loss From Discontinued Operations   ($  1,241,097)  ($  3,875,462)
Net Loss                                ($    710,331)  ($  3,609,236)
Weighted Shares Outstanding                 3,974,856       3,946,439
Earnings (Loss) Per Share- Continuing 
 Operations                                      $.13          $  .08
Earnings (Loss) Per Share-Discontinued 
 Operations                                     ($.31)        ($ 0.98)
*T

   ABOUT THERMODYNETICS

   Thermodynetics principal holding is a 56.32% interest in Turbotec
Products Plc, a UK company that is quoted on the AIM market of the
London Stock Exchange under the symbol TRBO. TRBO, through its wholly
owned US subsidiary, Turbotec Products, Inc. is a manufacturer of high
performance, high quality heat exchangers, fabricated metal components
and flexible connector products for heat transfer, transportation, and
plumbing applications. Turbotec markets its products in the United
States, Canada and abroad to customers in the space conditioning,
refrigeration, automotive, biomedical, plumbing, appliance, water
heating and aerospace industries.

   Turbotec's tubing products are used in heat pumps as condensers
and evaporators in heating, refrigeration, food processing and
air-conditioning systems; in swimming pool and spa heaters; in the
biomedical field (as blood or intravenous fluid heat exchangers); in
heat recovery units used to heat water with recycled heat from air
conditioning and refrigeration systems; in ice production systems; in
laser coolers, beverage dispensers, food processing systems, chillers,
heat pump systems and boilers, and modules for use as components in
large condensing or desuperheater systems; and are generally usable in
most applications where heat transfer is required. The tubing is also
used as a flexible connector in plumbing applications.

   TDYT also owns approximately 84,000 square feet of space that is
leased to Turbotec and another independent company. Lastly,
Thermodynetics owns a nominal interest in a private Belgium company
that is engaged in the nutraceutical industry that provides natural,
bioactive chemical compounds that have health promoting, disease
preventing or medicinal properties.

   FORWARD LOOKING STATEMENTS

   This report contains certain forward-looking statements regarding
the Company's business prospects and results of operations that are
subject to certain risks and uncertainties posed by many factors and
events that could cause their actual business, prospects and results
of operations to differ materially from those that may be anticipated
by such forward-looking statements. Factors that may affect such
forward-looking statements include, without limitation: the ability to
successfully and timely develop and finance new projects, the impact
of competition on revenues, changes in unit prices, and supply and
demand for the product lines in the markets served.

   When used, words such as "believes," "anticipates," "expects,"
"continue", "may", "plan", "predict", "should", "will", "intends" and
similar expressions are intended to identify forward-looking
statements, but are not the exclusive means of identifying
forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of
the date of this report. The Company undertakes no obligation to
revise any forward-looking statements in order to reflect events or
circumstances that may subsequently arise. Readers are urged to
carefully review and consider the various disclosures made in this
report, news releases, and other reports filed with the Securities and
Exchange Commission that attempt to advise interested parties of the
risks and factors that may affect their respective businesses.