January 20, 2010 08:00 ET

H2O Innovation and 3M Purification Enter Into a Sales Representation Agreement for the U.S. Oil & Gas and Automotive Assembly Markets

QUEBEC CITY, CANADA--(Marketwire - Jan. 20, 2010) - H2O Innovation Inc. ("H2O Innovation" or the "Company")(TSX VENTURE:HEO)(ALTERNEX:MNEMO:ALHEO), a complete water treatment solutions company providing custom designed systems along with specialty chemicals for membrane filtration systems, announces that it has signed a sales representative agreement (the "Agreement") with 3M Purification Inc. ("3M Purification"), formerly known as CUNO Incorporated, a world leader in the separation, clarification, and purification of fluids and gases with global operations. Under the Agreement, 3M Purification will represent H2O Innovation's complete line of customized water treatment solutions in the U.S. oil & gas and automotive assembly markets.

The Agreement reinforces H2O Innovation's current internal industrial water treatment sales force in the United States. In both the oil & gas and automotive assembly markets, 3M Purification will represent H2O Innovation's high performance water treatment systems and maintenance solutions including: custom designed, ultrafiltration, nanofiltration, and reverse osmosis membrane systems, its proprietary wastewater and water reuse technologies, and its line of patent-pending sustainable water additives and membrane cleaners. The terms of the Agreement remain confidential.

Existing H2O Innovation resources have been assigned to support this initiative and have already started to develop sales opportunities.

"The appointment of 3M Purification-a recognized innovation leader-as representative for our water treatment systems and solutions in the U.S. oil & gas and automotive assembly markets represents a valuable growth opportunity for H2O Innovation in these markets, which are segments of significant size in the industrial water treatment industry. One of the main pillars of our Company's growth strategy is to increase the level of industrial sales. This Agreement with 3M Purification provides us with a new tool to grow our sales and better balance our industrial and municipal sales", stated Frederic Dugre, President and CEO of H2O Innovation. "This commercial agreement gives us access to sales opportunities we would not otherwise have been able to obtain, thanks to 3M Purification's long standing client relationships with top-tier U.S. companies," concluded Frederic Dugre.

About H2O Innovation

Exclusively dedicated to water treatment, H2O Innovation is establishing itself as a key player in sustainable development and the field of clean technologies. H2O Innovation designs, develops, produces, and integrates state-of-the-art custom-built water treatment systems for the production of drinking water, the reclamation of water, the treatment of wastewater and industrial process water in the municipal, commercial, industrial, oil & gas, mining, and energy markets. Additionally, the Company offers complete operating and maintenance solutions for membrane filtration and reverse osmosis systems. H2O Innovation has approximately 100 employees and eight offices including three manufacturing and assembly plants in Canada and the United States. Shares of H2O Innovation are listed on the TSX Venture Exchange (HEO) as well as on the NYSE Euronext Alternext Exchange (MNEMO:ALHEO). For more information about H2O Innovation, visit the Company's website at www.h2oinnovation.com

Prospective disclosures

This press release may contain prospective disclosures representing current expectations of H2O Innovation which are subject to certain risks and uncertainties. For details of these risks and uncertainties, please refer to the Company's Annual Information Form dated September 28, 2009 available on SEDAR (www.sedar.com). H2O Innovation rejects any obligation to revise or update the prospective disclosures contained in this press release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Alternext Exchange accepts responsibility for the adequacy or accuracy of this release.

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