Press Room

Press Release

May 2006

Terra Systems, Inc Takes Another Step in the Development of its Mountain Island Energy, LLC Idaho Based Subsidiary

Soda Springs, Idaho - Terra Systems, Inc. (Pink Sheets: TSYI - News) - Taking another sequential step in the development of Terra System Inc's Idaho based subsidiary Mountain Island Energy, LLC (MIE); the company is pleased to announce the completion of the "Hydrological Study for the Soda Springs Project Site" by Brockway Engineering of Twin Falls, Idaho (www.brockwayeng.com).

The MIE owned Soda Springs Project Site is planned to be the location of a future clean coal power generating plant and a carbon upgrading facility.

The study concludes: "The basalt aquifer is adequate to supply the discharges needed from one or more [production] wells at the proposed development". This study provides a necessary component needed to insure completion of the Soda Springs Idaho Projects.

The Hydrological Study coupled with the May 2005 "Permitting and Environmental Feasibility Analysis" completed by Ecology and Environment (www.ene.com) are key steps in the overall permitting of the Soda Springs project site for development.

George Ford, President of Terra Systems, Inc. commented that "Mountain Island Energy, LLC continues to move forward to develop energy projects in a deliberate manner which brings added value to Terra Systems, Inc."

Mitchell J. Hart, Vice-President of Terra and Managing General Partner of Mountain Island Energy LLC stated; "Completion of this phase of our environmental review provides a solid foundation for the continued development of our site in the Soda Springs area."

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About Terra Systems, Inc.
Terra Systems, Inc. is a clean energy technology company incorporated in 1996 focused on advanced clean coal power generation, enhancement and utilization of waste coal and upgrading of specialty carbon products.

Contact
George Ford
Terra Systems, Inc.
gford3648@msn.com

Note: Certain statements contained herein may be forward-looking statements within the meaning of federal securities laws and Terra Systems, Inc. intends that such forward-looking statements be subject to the safe-harbor created thereby. Forward-looking statements include Terra Systems, Inc. expectations as to the managing and marketing of its businesses within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and our future results that are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Actual results may vary materially from such expectations. Words such as "expects," "anticipates," "targets," "goals," "projects," believes," "seeks," "estimates," variations of such words, and similar expressions are intended to identify such forward-looking statements. Any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances, are forward-looking. Although Terra Systems, Inc. believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that our results of operations will not be adversely affected by such factors. Unless legally required, we undertake no obligation to revise or update any forward-looking statements for any reason. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this statement.

Company Profile

Terra Systems, Inc. is a development stage company focused on advanced, clean and renewable energy technology applications and projects. TSYI is engaged in the development and commercialization of it's patented pneumatic accelerator system technology and the upgrading of specialty and waste carbon products. Terra Systems was founded in 1996 and is headquartered in Salt Lake City, Utah with a satellite office in Price, Utah.