November 10, 2010 08:00 ET

H2O Innovation Awarded CAN$5.0 Million in Contracts for Industrial and Municipal Water Treatment Systems

All amounts in Canadian dollars unless otherwise stated

QUEBEC CITY, QUEBEC--(Marketwire - Nov. 10, 2010) - H2O Innovation Inc. (TSX VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO) ("H2O Innovation" or the "Company") announces today that it has been awarded several new contracts totaling $5.0 million. These contracts will see H2O Innovation provide custom-built water treatment systems and equipment to industrial and municipal end-users in Canada and the United States. The contracts announced today bring H2O Innovation's sales backlog to $18.4 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.

"More than three-quarters of the total value of the contracts announced today come from industrial clients in the oil & gas, chemical and energy industries. Along with the industrial contracts we were awarded at the end of September, today's contracts reaffirm the pick-up of our industrial sales", stated Frédéric Dugré, President and CEO of H2O Innovation.

As part of the contracts announced today, H2O Innovation will design, build, and deliver to an industrial customer located in Western Canada a reverse osmosis and ultrafiltration system including green sand filters for the production of drinking water together with a wastewater treatment system using its patented Bio-Brane technology. Another one of the contracts will see H2O Innovation design, manufacture, and deliver to an industrial client also located in Western Canada another Bio-Brane wastewater treatment system. H2O Innovation's Bio-Brane technology is a high-efficiency IFAS MBR (integrated fixed-film activated sludge and membrane bioreactor) system.

The Company will also design, fabricate, and deliver a system to produce industrial process water for a U.S. energy and power generation company along with other smaller systems for an institution in Ontario and a municipality in Quebec.

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 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 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