September 29, 2010 08:00 ET

H2O Innovation Awarded CAN$4.3 Million in Contracts for Industrial and Municipal Water Treatment Systems

All amounts in Canadian dollars unless otherwise stated

QUEBEC CITY, QUEBEC--(Marketwire - Sept. 28, 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, announces today that it has been awarded several new contracts totaling $4.3 million. These contracts will see H2O Innovation provide custom-built water treatment systems and equipment for municipal and industrial end-users, in the United States and Canada and, marginally, in Russia. These contracts bring H2O Innovation's sales backlog to $14.3 million. The Company's sales backlog is comprised entirely of systems and equipment sales and does not include sales of services and consumable products, nor does it include the backlog of the Company's Indian joint venture H2O Innovation India.

"We are pleased to have been awarded these contracts. Their signing is a result of both a higher level of bidding activity that we have been experiencing since the second half of fiscal 2010 along with capital equipment investments picking up in the industrial segment of the water treatment industry", stated Frédéric Dugré, President and CEO of H2O Innovation.

As part of the contracts announced today, H2O Innovation will design, build and deliver reverse osmosis and ultrafiltration systems for the production of drinking water and for water reclamation for municipal customers located in California, Colorado, and Quebec. One of the contracts announced today will see H2O Innovation design and manufacture a 6.7 MGD low-pressure reverse osmosis system composed of two 3.35 MGD trains to treat ground water for potable use for the East Cherry Creek Valley Water & Sanitation District's Northern Water Supply Project in Colorado.

For other contracts, H2O Innovation will provide reverse osmosis systems and filtration equipment for the production of process water for U.S. and Canadian industrial customers, mostly in the energy and power generation industry. H2O Innovation has also been contracted to design, fabricate, assemble and deliver an industrial water reuse system using its patented Bio-Brane membrane bio-reactor (MBR) system to a textile plant in Russia, the Company's first recent contract in the fast growing Russian market.

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 21, 2010 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 

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.

Contact Information