H2O Innovation: PWT(TM) Announces New Distributor in Saudi Arabia and Secures First Stocking Orders of SpectraGuard(TM) Antiscalant

QUEBEC CITY, QUEBEC--(Marketwired - April 27, 2016) - H₂O Innovation Inc. ("H₂O Innovation" or the "Company") (TSX VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO)(OTCQX:HEOFF) is proud to announce the execution of a distribution agreement between its subsidiary PWT™, specialized in membrane filtration specialty chemicals, and Chemsbro, provider of integrated chemical solutions and specialty chemicals for water and wastewater treatment plants in Saudi Arabia. In complement to this distribution agreement, Chemsbro received first stocking orders of SpectraGuard™ antiscalant which would be used notably by two (2) sea water desalination plants in Saudi Arabia.

Founded in 2005, Chemsbro is a member of SBCC Water Group that includes SAWACO-Water Desalination and Suido Kiko Middle East. Chemsbro is also known as a leader in niche industrial sectors as well as a consultant and trouble shooter for membrane-based desalination plants. While its headquarters reside in Jeddah, Saudi Arabia, Chemsbro has many other offices across the country.

"Chemsbro is delighted to establish a unique relationship with PWT. This partnership will allow PWT to enter the Saudi market and benefit from the competitive edge that Chemsbro enjoys in the public and private sectors. For its part, Chemsbro will benefit from the experience and R&D capabilities of PWT in the membrane-based desalination industry", added Nizar Kammourie, CEO of Chemsbro.

Chemsbro's main customers are the Water and Electricity Ministry of Saudi Arabia, National Water Company, the Saudi Industrial Property Authority (Modon) and many industrial companies in Saudi Arabia. Among these customers, Chemsbro has started to provide the SpectraGuard™ antiscalant to two (2) sea water desalination plants owned by SAWACO.

Furthermore, Chemsbro has been awarded a three (3) year contract with the city of Riyadh, the capital of Saudi Arabia, to supply services and specialty chemicals for seven (7) water treatment plants, which represent about 30% of the water in the city. This contract represents a great opportunity for PWT to get its products used in major water treatment plants of Saudi Arabia.

"We are very excited about the business venture with Chemsbro. We are positioning ourselves to establish a presence in Saudi Arabia, the world's biggest desalination market. Many initiatives and huge investments are done worldwide to promote water efficiency and Saudi Arabia differentiates itself by its wastewater reuse market, which is the third largest in the world. Through our unique specialty products for both desalination and wastewater reuse, we are confident to capitalize on those opportunities. We see a lot of potential to repeat our global success story in Saudi Arabia with the support of our partner Chemsbro", stated Gregory Madden, Vice President, Specialty Products and Services, with responsibility for the Piedmont and PWT business units.

About PWT™

PWT develops, manufactures and markets specialty chemicals for municipal and industrial nanofiltration ("NF") and reverse osmosis ("RO") membrane systems. Its environmentally friendly phosphate-free super-concentrated antiscalants are eleven (11) times more concentrated than standard antiscalants, reducing shipping/handling costs by 90% and reducing drum disposal requirements. With a complete line of NF and RO pre-treatment and maintenance products, comprehensive analytical and technical capabilities, and an innovative research and development group, PWT offers solutions to maximize the efficiency and economics of membrane systems operations. For more information, visit www.pwtchemicals.com.

About H₂O Innovation

H₂O Innovation designs and provides state-of-the-art, custom-built, and integrated water treatment solutions based on membrane filtration technology for municipal, energy and natural resources end-users. Also, directly and through its affiliates, H₂O Innovation provides products and services complementary to its membrane filtration and reverse osmosis systems. These products consist of a complete line of specialty chemicals, consumables and couplings. For more information, visit www.h2oinnovation.com.

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