December 10, 2009 08:00 ET

H2O Innovation Awarded New Contracts Totaling CAN$2.2 Million, Adds Sales Representatives in the United States

QUEBEC CITY, QUEBEC--(Marketwire - Dec. 10, 2009) - H2O Innovation Inc. ("H2O Innovation" or the "Company") (TSX VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO), a complete water treatment solutions company providing custom designed systems along with water additives and specialty chemicals for membrane filtration systems, announces it successfully landed contracts worth a total of CAN$2.2 million within the last few weeks. These contracts bring the Company's sales backlog at CAN$21.2 million (the sales backlog figure includes a contract whose execution has been deferred, as was announced by the Company by means of press release in November 2008). The Company's sales backlog is uniquely comprised of systems and equipment sales and does not include sales of services or consumable products, which represented approximately a quarter of its total sales for the previous quarter (first quarter of the current 2010 fiscal year).

These contracts will see H2O Innovation design, manufacture and deliver custom-built water treatment systems for the production of drinking water by reverse osmosis, for water reuse and for the treatment of wastewater. Some of the contracts will also see the Company supply process equipment and parts. These sales will be delivered to municipal and institutional end-users in various U.S. regions including the Mid-Atlantic, Southeastern and Mountain States. Some of the systems sales announced today have been funded in part by funds from the American Recovery and Reinvestment Act of 2009.

"The signing in the last few weeks of these new contracts and sales representatives in the United States is the result of the ongoing efforts deployed throughout our company to expand our sales network and to maintain a high level of bidding activity in the municipal drinking water sector", stated Frederic Dugre, President and CEO of H2O Innovation Inc.

New sales representatives for wastewater treatment systems in the United States

Following a very successful participation at WEFTEC.09, the largest annual water quality conference and exhibition in the United States, H2O Innovation continues to gain momentum in the water reuse and wastewater treatment industry segments. The Company has recently signed agreements with three new sales representation agents for its wastewater treatment solutions-including its patented Bio-Brane™ MBR for water reuse applications and its Bio-Wheel™ advanced wastewater treatment system. These additional representatives cover Louisiana and Mississippi, Southern New Jersey, Eastern New York and Long Island, and Florida. With these three additional representatives, the Company's network now totals more than 20 sales representatives in the United States for its water reuse and wastewater treatment systems.

"We are happy to note that some of the contracts announced today originate from opportunities that were brought to us by sales representatives signed just over a year ago during the previous edition of WEFTEC. We continue to look for additional highly networked and market knowledgeable representatives throughout the United States and internationally for our water reuse and wastewater treatment systems", concluded Frederic Dugre.

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.

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, 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

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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