March 25, 2010 07:59 ET

H2O Innovation and 3M Extend Sales Representation Agreement to Canada

Second sales representation agreement with 3M in two months enhances the distribution of H2O Innovation's water treatment solutions in Canadian oil & gas, and automotive assembly markets

QUEBEC CITY, QUEBEC, CANADA--(Marketwire - March 25, 2010) - 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 specialty chemicals for membrane filtration systems, today announced it has signed a sales representative agreement (the "Agreement") with 3M Canada Company ("3M Canada"), the Canadian subsidiary of 3M Inc., the parent-company of 3M Purification Inc. ("3M Purification"), a world leader in the separation, clarification, and purification of fluids and gases with global operations.

Under the Agreement, 3M Canada will represent H2O Innovation's complete line of customized water treatment solutions in the Canadian oil & gas, and automotive assembly markets. This Agreement comes eight weeks after the companies announced 3M Purification would represent H2O Innovation's products and solutions in the same U.S. markets.

"In addition to extending the geographical reach of the initial sales representation agreement, this second agreement demonstrates 3M Purification's commitment to making its partnership with H2O Innovation a successful business initiative for both parties," stated Frédéric Dugré, President and CEO of H2O Innovation.

"Whether it's the use, potential re-use or treatment of water, this market continues to grow in terms of importance to our end-users making it a significant strategic space for 3M," said Rick Orser, Business Manager, 3M Purification. "Our common focus on opportunities, shared culture of innovation and combined commitment to providing highly differentiated, high value products aligns H2O Innovation well with 3M Canada. We look forward to leveraging our shared expertise with this business relationship."

In the Canadian oil & gas, and automotive assembly markets, 3M Canada will represent H2O Innovation's high performance water treatment systems and maintenance solutions including custom designed ultrafiltration, nanofiltration, and reverse osmosis membrane systems, its wastewater treatment technologies, and its line of patent-pending sustainable water additives and membrane cleaners marketed under the brand name Professional Water Technologies™.

Already active in the Canadian oil & gas market for water treatment systems, H2O Innovation will expand its presence leveraging 3M Canada's long-standing client relationships with many major national and international players. The Agreement will also enable H2O Innovation to gain valuable access to the Canadian automotive assembly industry, which is mainly concentrated in the province of Ontario, one of the most important geographical markets for water treatment systems in Canada.

This second agreement with 3M will be supported by the same H2O Innovation resources that are already supporting 3M Purification's sales efforts in the U.S. The terms of the Agreement remain confidential.

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 (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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