A heat exchanger between particulate or granular materials and gas is developed. It makes use of a swirling gas flow similar to the usual cyclone separators but the difference from them is that the swirl making gas is issued into the cyclone chamber with downward axial velocity component. After it turns the flow direction near the bottom of the chamber, the low temperature gas receives heat from high temperature particles supplied from above at the chamber's center. Through this configuration, a direct contact and quasi counter-flow heat exchange pattern is realized so that the effective recovery of heat carried by particles is achieved. A model heat exchanger was manufactured via several numerical experiments and its performances of heat exchange as well as particle recovery were examined. Attaching a small particle diffuser below the particle-feeding nozzle brought about a drastic improvement of the heat exchange performance without deteriorating the particle recovery efficiency. The outlet gas temperature much higher than the particle outlet temperature was finally obtained, which is never realized in the parallel flow heat exchanger. (C) 2004 Elsevier Ltd. All rights reserved.