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UPDATE - Smartcool's Israeli Distributor Installs ESM at Shufersal, the Largest Supermarket Chain in Israel

V.SSC.H

Shufersal Reports Energy Savings Resulting in a 12 Month Return On Investment

VANCOUVER, BC--(Marketwired - July 22, 2016) - Smartcool Systems Inc. (TSX VENTURE: SSC) (OTCQB: SSCFF) is pleased to announce that Smartcool Israel, the exclusive distributor of Smartcool's ESM products in Israel, has completed a successful installation and has already confirmed significant energy savings at Shufersal. The installation was performed on both high temperature and low temperature refrigeration racks which produced savings resulting in a 12 month payback. In addition an ESM was installed on the A/C which produced an 18 month payback.

Shufersal, formerly Shufra-Sal, and commonly known as Super-Sol is the largest supermarket chain in Israel with 248 stores and 12,400 employees. Danni Maoz Zur, the engineer from Shufersal, in charge of Refrigeration and A/C, states, "The results from the Smartcool technology are very impressive, providing significant reduction in our operating costs for both refrigeration and air conditioning. The reduced run time of our compressors should result in a longer life expectancy of our equipment. We saw no impact on temperature at the site. The additional benefit of the reduction in our carbon footprint is very important to our goal of making our company greener."

Itzchak Fuchs, president of Smartcool Israel, states, "Since embracing the Smartcool technology we have seen very good results across many applications. This is first time we have had the opportunity to work with a national company with its brand recognition. As we more forward with a roll-out to more facilitates it will help strengthen our marketing efforts in the territory." The savings at the first site were 332,260 kWh per year. When projecting that across all sites it provides a significant economic benefit to Shufersal.

Steven Martin EVP for Smartcool, states, "Smartcool Israel has put together a strong team of sales and technical staff and have been gaining recognition in the market. Securing a client like Shufersal will enhance the opportunity to leverage the results and benefits as they expand their marketing initiatives. Our experience in this market vertical with customers like Sainsbury in UK provides comfort to newer customers in making commitments to spending capital on our energy efficiency technologies."

About Smartcool

Smartcool Systems Inc. (TSX VENTURE: SSC) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world. The ECO3 and ESM are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by up to 40%, giving customers a return on investment in as little as 12 months.

Legal Notice Regarding Forward Looking Statements

This news release contains "forward looking statements". Forward-looking statements are projections of financial performance or future events. Forward-looking statements can be identified by the use of words such as "expect", "anticipate", "intend", "plan", "believe", "estimate" and words of similar meaning. Forward-looking statements are based on management's current expectations and assumptions and they are subject to risks that may cause actual results to differ materially from those expressed or implied by such forward looking statements. Forward-looking statements in this news release include those concerning the company's belief in the growth opportunities in the Israel. These statements are subject to risks that may cause the actual results to be materially different in future periods from those expressed or implied by such forward looking statements. Risks that may prevent or delay the forward looking statements from coming to fruition as anticipated include the availability of working capital, risks inherent in product development, as well as market factors that may increase costs or time to market. It is our policy not to update forward looking statements except to the extent required under applicable securities laws. Further information on the Company is available at www.sedar.com or at the Company's website, www.smartcool.net.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

For further information

WEB
www.smartcool.net
www.smartcooleco3.com

EMAIL
info@smartcool.net

Investor inquiries

Mike Kordysz
Vice President, Investor Relations
TEL +1 604 904 8632
EMAIL mike.kordysz@smartcool.net



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