WaterFurnace Renewable Energy, Inc. Increases Regular Dividend and Announces First Quarter Results (U.S.$)

    FORT WAYNE, IN, May 5 /CNW/ - WaterFurnace Renewable Energy, Inc.
announced first quarter results today. Bruce Ritchey, President/CEO noted,
"Sales for the quarter were on par with the record first quarter of 2008. Net
income for the quarter was $0.07 per share versus $0.13 last year. The
decrease in net income versus previous year was due primarily to higher
operating expense. We went into the quarter with higher staffing levels than
the same quarter last year and continued aggressive research and development
and sales and marketing activities."
    The regular dividend was increased from $0.18 per share to $0.19.
Shareholders of record at the market close on May 15, 2009 will receive the
$0.19 per share dividend on June 1, 2009. The complete report to shareholders
is posted on the Company's website: www.waterfurnace.com. Management will
conduct a webcast covering the results of the quarter at 4:15 pm Eastern
Daylight Time on Wednesday, May 6th. Interested parties can listen live or to
the recorded version at the Company's website: www.waterfurnace.com.

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                     WaterFurnace Renewable Energy, Inc.
                      Consolidated Statements of Income
      Prepared using Canadian Generally Accepted Accounting Principles
            (Unaudited - Thousands of U.S.$ except per share data)


                                                 ----------------------------
                                                 Three months ended March 31,
                                                         2009          2008
                                                 --------------- ------------
    Sales                                            $  23,674     $  23,813

      Cost of sales                                     16,661        16,532
                                                 --------------- ------------
    Gross profit                                         7,013         7,281

      Operating expenses                                 5,365         4,780
      Research and development expenses                    663           369
                                                 --------------- ------------
    Income before interest and income taxes                985         2,132
      Interest income                                        6            59
      Interest expense                                      (3)          (10)
                                                 --------------- ------------
    Income before income taxes                             988         2,181
      Income taxes                                         158           599
                                                 --------------- ------------
    Net income                                       $     830     $   1,582
                                                 --------------- ------------
                                                 --------------- ------------

    Basic and diluted earnings per share U.S.$       $    0.07     $    0.13
                                                 --------------- ------------

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                     WaterFurnace Renewable Energy, Inc.
                         Consolidated Balance Sheets
      Prepared using Canadian Generally Accepted Accounting Principles
                       (Unaudited - Thousands of U.S.$)

                                                      March 31,  December 31,
    Assets                                               2009          2008
                                                 --------------- ------------
    Current assets
      Cash and cash equivalents                      $   6,276     $   6,029
      Short-term investments                             6,367         5,316
      Receivables                                       14,016        18,797
      Inventory                                          7,295         8,714
      Other current assets                               2,549         2,433
                                                 --------------- ------------
    Total current assets                                36,503        41,289
    Capital assets                                       4,660         4,643
    Other assets                                         2,439         2,080
                                                 --------------- ------------

    Total Assets                                     $  43,602     $  48,012
                                                 --------------- ------------
                                                 --------------- ------------
    Liabilities
    Current liabilities
      Payables and accruals                          $   7,038     $  10,542
      Income taxes payable                                 835         2,027
      Provision for warranty claims - current
       portion                                           1,977         1,824
                                                 --------------- ------------
    Total current liabilities                            9,850        14,393
    Deferred compensation                                1,855         1,085
    Provision for warranty claims                        6,651         5,827
                                                 --------------- ------------
    Total Liabilities                                   18,356        21,305
                                                 --------------- ------------
    Shareholders' Equity
      Share capital                                     14,865        14,865
      Retained earnings                                 10,381        11,842
                                                 --------------- ------------
    Total Shareholders' Equity                          25,246        26,707
                                                 --------------- ------------
    Total Liabilities & Shareholders' Equity         $  43,602     $  48,012
                                                 --------------- ------------
                                                 --------------- ------------

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    More Information: Additional information is available on the Company's
web site: www.waterfurnace.com. WaterFurnace Renewable Energy, Inc. is traded
in both Canadian dollars and U.S. dollars on the Toronto Stock Exchange under
the symbol WFI for Canadian dollars and WFI.U for U.S. dollars.

    Risk and Uncertainties: This press release contains certain
forward-looking statements that may or may not be realized. Investors should
not rely solely on this information to make investment decisions. The
Company's sales are related to the cost and stability of electricity, fuel
oil, propane and natural gas. Federal, state and provincial building codes and
energy incentives can also impact sales. The Company is subject to standard
risks associated with most companies, such as normal competitive pressures.

For further information: Bruce Ritchey, President and CEO, 9000 
Conservation Way, Fort Wayne, IN, 46809-9794, (260) 479-3224