H2O INNOVATION INC.
TSX VENTURE : HEO
TSX CROISSANCE : HEO

H2O INNOVATION INC.

October 26, 2007 17:00 ET

H2O Innovation Puts an End to its Acquisition Project

QUEBEC CITY, QUEBEC--(Marketwire - Oct. 26, 2007) - THIS PRESS RELEASE IS NOT INTENDED FOR U.S. NEWSWIRE AGENCIES NOR FOR CIRCULATION IN THE U.S.

Management of H2O Innovation (2000) Inc. ("H2O")(TSX VENTURE:HEO)(Alternext:MNEMO:ALHEO) announces its decision to terminate its acquisition project to acquire all the shares of a US based company in the sector of water treatment (the "Target Company"), as announced in the April 16th, 2007 press release. This decision is the results of a mutual agreement with the Target Company. On the other hand, H2O plans to participate with the Target Company in projects involving membrane filtration technologies.

Notwithstanding the termination of the letter of intent, H2O and the Target Company have agreed to work together by jointly bidding on tenders involving water treatment. Moreover, the Target Company will benefit from the opportunity to market the various equipments and membrane processes developed by H2O, such as reverse osmosis, ultrafiltration and nanofiltration.

"The business relation that we could develop with the Target Company should benefit to H2O by making good use of its international marketing network. It is worth mentioning that we pursue our development strategy through acquisitions in order to improve our product line and support our efforts towards the Company's profitability" declared Guy Goulet, President and Chief Executive Officer of H2O.

We wish to remember that H2O completed the acquisition of five other entities over the past six years, one of them in the United States. H2O targets the water treatment market consolidation by establishing various synergies with companies specialized in this sector. Moreover, it is worth mentioning that H2O has no debt and possesses liquidities of approximately 18 M CAD in order to precisely complete strategic acquisitions and grasp business opportunities.

About H2O

H2O's mission is to develop, manufacture and market innovative, environmentally friendly products, intended for production of drinking water and treatment of sewage and industrial process water.

The TSX Venture Exchange and the Alternext Exchange assume no responsibility for the relevance or accuracy of this press release.

Contact Information

  • H2O Innovation (2000) Inc.
    Guy Goulet
    President and Chief Executive Officer
    514-294-7000
    ggoulet@h2oinnovation.com
    or
    H2O Innovation (2000) Inc.
    Frederic Dugre
    Executive Vice-President and Chief Operating Officer
    418-688-0170
    fdugre@h2oinnovation.com
    or
    H2O Innovation (2000) Inc.
    Olivia Dion
    Marketing & Communications Coordinator
    418-688-0170 ext. 329
    odion@h2oinnovation.com