H2O INNOVATION INC.
TSX VENTURE : HEO
ALTERNEX : ALHEO

H2O INNOVATION INC.

July 15, 2009 08:00 ET

H2O Innovation Signs CAD$2.7 Million in Contracts

QUEBEC CITY, QUEBEC--(Marketwire - July 15, 2009) - H2O Innovation Inc. ("H2O Innovation" or the "Company") (TSX VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO) announces it has signed several contracts to design and manufacture water treatment systems in Canada, the United States, and Algeria, for the production of drinking water and of industrial process water. These contracts-totaling CAD$2.7 million-bring the Company's sales backlog to CAN$25.7 million and reassert H2O Innovation's position as a key player in the municipal and industrial water treatment industry.

"We are happy to announce these new contracts today and are confident that they represent only the beginning of the results we could collect over time from the recent increase in bidding activity that we have been experiencing across the entire company" stated Frederic Dugre, President and CEO of H2O Innovation Inc.

Municipal drinking water production contracts

H2O Innovation has been awarded several contracts for the design, manufacturing and delivery of municipal drinking water systems and process equipment in Quebec (Canada) and Colorado (United States). In Quebec the municipalities of Sainte-Irenee and Sainte-Jeanne-d'Arc have selected H2O Innovation to design, manufacture and deliver custom designed high performance NanH2OFiltration nanofiltration systems including pre-treatment for the production of drinking water from surface waters. The NanH2OFiltration systems designed by H2O Innovation are certified Proven Solutions (technologie eprouvee) by the Quebec Government's Department of Sustainable Development, Environment and Parks. This certification proves the efficiency and the reliability of the NanH2Ofiltration surface water treatment system and enables the Company to broaden its sales in the Quebec municipal market. H2O Innovation is the first player in the industry to receive this certification in Quebec for the treatment of surface water.

In the United States, H2O Innovation has signed a contract to augment the capacity of the existing reverse osmosis system of the City of Las Animas, Colorado. Through a general contractor, the City has contracted H2O Innovation to design, supply and supervise the commissioning of the second stage of an existing single stage reverse osmosis system. The city's existing system was initially supplied by Membrane Systems, now a subsidiary of H2O Innovation, in 1996.

Industrial process water contracts

H2O Innovation has also recently signed contracts to supply reverse osmosis systems and process equipments for the production of industrial process water to clients active in the energy sector. These systems-of different capacities-will be manufactured and delivered to clients located in the United States, in Canada, as well as in Algeria. H2O Innovation has been progressively stepping up its business development efforts over the last years in Algeria, Northern Africa and the Middle East-fast growing markets for water treatment systems in general and reverse osmosis systems in particular.

Prospective disclosures

This press release may contain prospective disclosures representing current expectations of H2O Innovation and 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 26, 2008 available on SEDAR (www.sedar.com). H2O Innovation is under no 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 water treatment systems for the production of drinking water, the reclamation of water, the treatment of wastewater and industrial processed water in the municipal, commercial, pharmaceutical, industrial, mining, and energy markets. 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).

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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