February 16, 2010 08:01 ET

H2O Innovation Awarded CAN$2.1 Million in Contracts for Municipal and Industrial Water Treatment Systems in Canada and the United States

QUEBEC CITY, QUEBEC--(Marketwire - Feb. 16, 2010) - H2O Innovation Inc. (TSX VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO) -

All amounts in Canadian dollars unless otherwise stated.

H2O Innovation Inc. ("H2O Innovation" or the "Company"), a complete water treatment solutions company providing custom designed systems along with specialty chemicals for membrane filtration systems, announces it has been awarded new contracts totaling $2.1 million over the last weeks. These contracts will see H2O Innovation provide custom-built water treatment systems for municipal and industrial end-users in Canada and the United States.

As part of these contracts, H2O Innovation will design, manufacture, and deliver membrane filtration systems for the production of drinking water by ultrafiltration, nanofiltration and reverse osmosis, including a 2,740 m3/day reverse osmosis system for a municipal water treatment plant located in a city in Southern Manitoba, Canada. This project will also see H2O Innovation provide pre-treatment filters to achieve optimal iron and manganese reduction. Other smaller contracts awarded to the Company will see it manufacture industrial process water production systems and wastewater treatment systems using its proprietary patented Bio-Wheel™ integrated fixed-film activated sludge system.

These contracts bring the Company's sales backlog to $12.1 million. The Company's sales backlog is comprised entirely of systems and equipment sales and does not include sales of services or consumable products.

"We are glad to see the new contracts we have landed over the last weeks come from Manitoba, Quebec, and several U.S. states. These contracts cover a wide range of applications and technologies in both the municipal and industrial markets. Our unique Knowledge to share® approach coupled with our technical know-how and our proprietary technologies were key to gaining these new sales", stated Frederic Dugre, President and CEO of H2O Innovation Inc.

Prospective disclosures

Certain statements set forth in this press release regarding the operations and the activities of H2O Innovation as well as other communications by the Company to the public that describe more generally management objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of securities legislation. Forward-looking statements concern analysis and other information based on forecast future results and the estimate of amounts that cannot yet be yet determined. Forward-looking statements include the use of the words "expect", "believe", "estimate" and other similar terms as well as those usually used in the future and the conditional, notably regarding certain assumptions as to the success of a venture. Those forward-looking statements involve a number of risks and uncertainties which may result in actual and future results of the Company to be materially different than those indicated. Information about the risk factors to which the Company is exposed is provided in the Annual Information Form dated September 28, 2009 available on SEDAR (www.sedar.com). Unless required to do so pursuant to applicable securities legislation, H2O Innovation assumes no obligation to update or revise forward-looking statements contained in this press release or in other communications as a result of new information, future events and other changes.

About H2O Innovation

With 10 years of experience developing water treatment solutions, H2O Innovation is establishing itself as a key player in sustainable development and clean technologies in North America and abroad. 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 plants in Canada and the United States and is a founding partner of H2O Innovation India, a joint venture with Chembond Chemicals of Mumbai, India. Shares of H2O Innovation are listed on the TSX Venture Exchange (TSX VENTURE:HEO) as well as on the NYSE Euronext Alternext Exchange (ALTERNEXT:MNEMO:ALHEO). For more information about H2O Innovation, visit the Company's website at www.h2oinnovation.com.

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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