Thermoenergy Corporation
Proposed Ticker:THE 323 Center Street, Suite 1300
Exchange:American Stock Exchange Little Rock, AK 72201
Industry:Natural Resources (501) 376-6477

Filing Information
Type of Shares:Series A Common Shares Filing Date:2/12/97
U.S. Shares Filed:1,600,000 Filing Range:$6.00 - $7.00
Non-U.S. Shares Filed:0 Offering Amount: $10,400,000
Primary Shares:1,600,000 Expenses: -
Secondary Shares:0 Shares Out After:4,806,965

Primary Underwriting Group
ManagerTierPhone
National Securities Corp.Lead Manager (800) 800-9217

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Waring Cox
Bank's Law Firm: Camhy Karlinsky & Stein
Auditor: Kemp & Company
Registrar/Transfer Agent: ChaseMellon Shareholder Services, L.L.C.

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
9/30/96 9/30/96
Revenue:$0.00Assets:$0.17
Net Income:-$0.55Curr Assets:
EPS:-$0.01Liabilities:$1.87
Prior EPS:-$0.01Curr Liabilities:
Cash Flow/Oper:Equity:-$1.69
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is the exclusive worldwide (except Japan) licensee for certain environmental technologies developed by Battelle Memorial Institute an independent research and development organization. These technologies are primarily aimed at solving waste water problems. The company intends to sell equipment and services to government and industrial users, sublicense its technologies to industrial users, or build, own and operate municipal and/or industrial waste water treatment facilities. The company's business strategy is based upon entering into collaborative working relationships with established engineering and environmental companies, or formal joint venture agreements relative to the application of the technologies for specified industries or markets. The company is currently negotiating project-specific working arrangements with Foster Wheeler Environmental Corporation, Roy F. Weston, Inc., Dan Cowart, Inc., and Mitsui & Co., Inc. In addition, the company may sub-license the Technologies to third parties.

Use of Proceeds
The proceeds from the proposed offering will be used to fund proposed collaborative ventures; to fund additional research and development costs; to lease and equip an additional facility; to repay outstanding intercompany indebtedness; to collateralize a bank loan of the company; and to fund working capital and for general corporate purposes.

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