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This paper presents the results of many years of successful operation of packaged heat pumps in school classrooms, multipurpose rooms and other spaces. The system takes advantage of the heat pump principle by directing exhaust air from the conditioned space over the outdoor coil of the unit. This design feature serves to reduce energy use for both heating and cooling, to extend equipment life and to reduce cost of maintaining the system. The report presents heating energy use and costs of the heat pump heat reclaim system as compared with similar schools that are heated by other types of systems. The results of this comparison show a system that provides comfort with a greatly reduced use of energy and high degree of reliability with very low maintenance.