H2O Innovation Inc.
TSX VENTURE : HEO
EURONEXT PARIS : ALHEO

H2O Innovation Inc.

February 14, 2012 10:29 ET

H2O Innovation Issues Correction to Press Release Announcing its Fiscal 2012 Second Quarter Results (Correction Notice)

QUEBEC CITY, QUEBEC--(Marketwire - Feb. 14, 2012) - H2O Innovation Inc. ("H2O Innovation" or the "Company") (TSX VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO)announces a correction to its press release issued this morning at 8 a.m. (Eastern Time) entitled "H2O Innovation reports fiscal 2012 second quarter results - Revenues increase 11%, backlog remains high".

In the table entitled "CONSOLIDATED RESULTS (Unaudited)", the net loss for the three-month period ended December 31, 2010 should read ($523,693) instead of ($1,481,318).

The corrected table follows:

CONSOLIDATED RESULTS
(Unaudited)
Three-month period ended December 31 Six-month period ended December 31
2011 2010 2011 2010
$CAD $CAD $CAD $CAD
Revenues 7,056,495 6,354,087 14,126,263 12,679,168
Gross profit 22.6 % 31.4 % 23.6 % 30.6 %
Gross profit 1,592,624 1,993,756 3,337,558 3,878,624
Operating loss (756,280 ) (310,639 ) (795,877 ) (684,580 )
EBITDA(1) (707,814 ) (23,624 ) (468,427 ) (111,487 )
Adjusted EBITDA (excluding stock-based compensation) (671,487 ) 7,951 (379,512 ) (815 )
Net loss for the period (1,214,510 ) (523,693 ) (1,302,726 ) (1,153,303 )
Basic and diluted net loss per share (0.020 ) (0.009 ) (0.022 ) (0.019 )

About H2O Innovation

Building on 11 years of experience, H2O Innovation designs, manufactures, and integrates state-of-the-art custom-built water treatment systems for the production of drinking water and industrial process water, the reclamation and reuse of water, and the treatment of wastewater in the municipal, commercial, institutional, industrial, oil & gas, mining, and energy markets. The Company also offers operating and maintenance solutions for membrane filtration and reverse osmosis systems. H2O Innovation has over 100 employees, seven 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) and on the NYSE Euronext Alternext Exchange (MNEMO: ALHEO). For more, visit www.h2oinnovation.com.

(1) Earnings before interests, taxes, depreciation and amortization (EBITDA) is a performance indicator that is not determined in accordance with International Financial Reporting Standards nor Canadian generally accepted accounting principles and is not intended as an alternative measure of net earnings. Because EBITDA may not be calculated identically by all companies, the Company's result may not be directly comparable to similarly titled measures of other companies.

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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