September 22, 2010 08:00 ET

H2O Innovation Announces Departure of CFO, Proposes New Board Director, Grants Stock Options to Key Personnel

QUEBEC CITY, QUEBEC--(Marketwire - Sept. 22, 2010) - H2O Innovation Inc. ("H2O Innovation" or the "Company") (TSX VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO) -

All amounts in Canadian dollars unless otherwise stated.

H2O Innovation Inc. ("H2O Innovation" or the "Company") (TSX VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO) announces that Annie Lemieux, Chief Financial Officer, has made known her decision to leave the Company. Her departure will be effective September 23, 2010. The Company intends to initiate shortly the process of recruiting a new Chief Financial Officer.

"After three years with us, Annie has accepted a financial position with a privately-held company and will be leaving H2O Innovation. I would like to thank her for her invaluable contribution to our financial reporting, which has reached the highest levels thanks to her hard work. We wish her great success in her new position", said Frédéric Dugré, President and CEO of H2O Innovation Inc.

Laurence Gamst, CPA, proposed for election as Director of H2O Innovation

H2O Innovation proposes Mr. Laurence Gamst, CPA, and Managing Principal at DS&B Certified Public Accountants, Consultants & Advisors, as a candidate Director for election to its Board of Directors at the next Annual General Meeting of Shareholders, which will be held on Wednesday, November 10, 2010. Mr. Gamst is also a shareholder of H2O Innovation.

"We are very pleased to propose Laurence as a candidate Director for election to our Board of Directors at our upcoming annual general meeting of shareholders. Laurence's extensive financial knowledge and keen business insights will be valuable assets for our Board", commented Philippe Gervais, Chairman of the Board of H2O Innovation Inc. "His vast experience in strategic planning, finance, accounting and operations will benefit H2O Innovation as it continues its growth and implements its strategic plan."

"I am very pleased to be proposed for election as a Director of the Company at its next Annual General Meeting of Shareholders. H2O Innovation is a young and vibrant leader in the water treatment industry. I look forward to contributing to the Company's development as it embarks on its second decade and is marching towards profitability", said Laurence Gamst, CPA.

Laurence Gamst graduated from the University of Minnesota in 1976. He is a Certified Public Accountant and an active member of the American Institute of Certified Public Accountants and Minnesota Society of Certified Public Accountants. In 1976, Mr. Gamst joined DS&B Certified Public Accountants, Consultants & Advisors, where he now acts as Managing Principal. Mr. Gamst uses his vast financial, business ownership and management experience to set and achieve the firm's strategic direction. In addition, he utilizes his business advisory, direct ownership and financial expertise to proactively help clients with strategic planning, operations, succession and financing issues. Mr. Gamst was instrumental in developing DS&B's healthcare specialty, and the firm is now recognized as one of the state's leading healthcare consulting teams. Mr. Gamst is also a private investor and, with partners, invests and acquires privately-owned operating companies.

Granting of stock options to key personnel

The Company also announces the granting today of a total of 2,055,000 stock options to key personnel, including 1,420,000 to top management, the whole pursuant to the terms and conditions of the Company's stock option plan. The stock options entitle their holders to acquire one common share of the Company at a price of $0.50 before September 21, 2020 and have vesting periods from two to four years, with 50% or 25% vested every year respectively. The Company's granting of stock options to key members of its management team is a method of compensation which is used to attract and retain personnel and to provide an incentive to participate in the long-term development of the Company and the growth of shareholder value.

Conference call and webcast

H2O Innovation will hold a conference call today, September 22, 2010, at 10:00 a.m. (Eastern Time) to review the results of fiscal 2010 published yesterday after markets closed. The call will begin with a presentation by Management, followed by a question-and-answer period. Shareholders, analysts and institutional investors are invited to participate. The numbers to dial for access are 514-392-1478 (Montreal area) or the North American toll-free number 1-877-461-2815. International participants are invited to dial +1 514-392-1478.

A slide presentation intended for simultaneous viewing during the call will be available this morning on the Financial Reports and Webcasts page of the Investors section of the Company's website.

Media representatives and other interested parties may participate in listen only mode or may listen to the live webcast of the conference call (audio and slides) accessible through H2O Innovation's website at www.h2oinnovation.com. The webcast will remain available for replay on the Company's website for 90 days in the Investors section.

About H2O Innovation 

Building on 10 years of experience, H2O Innovation designs, manufactures, 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 90 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 based in 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, visit 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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