July 07, 2010 08:00 ET

H2O Innovation Awarded CAN$4.5 Million in Contracts for Industrial and Municipal Water Treatment Systems

All amounts in Canadian dollars unless otherwise stated.

QUEBEC CITY, QUEBEC--(Marketwire - July 7, 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 new contracts totaling $4.5 million. These contracts will see H2O Innovation provide custom-built water treatment systems for municipal and industrial end-users, in the United States and Canada and, to a lesser extent, in Egypt. These contracts bring the Company's sales backlog to $14.7 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 successfully secured contracts for water treatment systems and equipment in all applications and markets we target in the United States and Canada. From drinking water systems in Quebec to industrial process water systems for top-tier U.S. industrial companies, along with contracts for our Bio-Wheel wastewater treatment systems, these contracts cover the full breadth of our water treatment systems offering", stated Frédéric Dugré, President and CEO of H2O Innovation. "We are also particularly pleased to have obtained five projects in the industrial sector, a market segment where capital equipment investments have been rare since the beginning of the recession", concluded Frédéric Dugré.

As part of the contracts announced today, H2O Innovation will design, build and deliver reverse osmosis and nanofiltration systems for the production of drinking water and for water reclamation for municipal customers located in Quebec and in the Southwestern United States. Other contracts will see the Company provide reverse osmosis and ultrafiltration systems for the production of process water for industrial customers in the United States and Egypt. H2O Innovation has also been contracted to design, build and deliver two of its patented Bio-Wheel wastewater treatment systems to a commercial customer in Virginia and a municipal customer in Alabama.

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 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 with Chembond Chemicals Ltd. 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 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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