Press Room

Press Release

September 2006

Terra Systems, Inc - Reaches Milestone -- Fully Reporting Status with the SEC

Salt Lake City, Utah - Terra Systems, Inc. (TSYI.OB - News) - Terra Systems, Inc. is pleased to announce that it has reached "Fully Reporting" Status with the SEC with the Edgarization of the company's 2006 1st and 2nd Quarter 10Q filings this week.

Of the significant milestone, George Ford, President of Terra Systems, Inc. said, "this is the culmination of nearly eighteen months of hard work to bring Terra from essentially an "inactive" status to its current filings status. The Company has made great strides over the past year and a half in bringing current annual and quarterly filings from 2001 to the present. The process has been painstaking and very comprehensive".

Clayton Timothy, CEO, Terra Systems, Inc. stated, "We are pleased with what has been accomplished. I give a lot of credit to our senior management team who has worked endless hours in revitalizing Terra Systems, Inc. We have reestablished a solid foundation on which Terra will grow."

To view TSYI's current SEC filings, go to: http://www.edgar-online.com/ .

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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.