Two systems, one with air re-circulation alone and the other a combination of air re-circulation and energy recovery using plate heat exchangers have been analysed. For these systems, a set of equations was derived for partial or full re-circulation of air with and without plate heat exchangers. Also, as part of the analysis, the reciprocal ratio of investment and running costs was considered. In this analysis, the re-circulation factor provided by ventilation units, a bypass factor and the efficiency of a plate heat exchanger were considered to be variables.