H2O Innovation Renews and Extends its Credit Facilities

QUEBEC CITY, QUEBEC--(Marketwire - Feb. 8, 2012) - H₂O Innovation Inc. ("H₂O Innovation" or the "Company") (TSX VENTURE:HEO) (ALTERNEXT:MNEMO:ALHEO) announces today that it has recently concluded the renewal of its credit facilities for 2012. The Company's financing is comprised of a total of $4 million revolving credit facility in Canadian and U.S. currencies - up from its previous $3 million facility. The Company uses this facility to finance its normal course of business.

This renewed and extended financing agreement provides H₂O Innovation sufficient financial resources to cover the working capital requirements it will face as it executes its record-high order backlog, while also ensuring flexibility to continue its development strategy.

The financing is provided by National Bank of Canada, the Company's current commercial bank with whom it has developed an enduring relationship over the last 4 years.

The Company also uses financial solutions for its operations from Export Development Canada ("EDC"), which provides guarantees for its revolving credit facility as well as a performance security guarantee related to letter of credit on a project-to-project basis. EDC is a long-time financial partner that is instrumental in enabling H₂O Innovation to export over 70% of its business outside of Canada, mainly in the United States.

"We are really pleased to have completed the renewal of our credit facilities with National Bank of Canada and EDC, two well-respected and solid financial institutions, demonstrating the confidence and continued support of our main financing partners. Under favourable commercial terms and with a reduction in related costs, this financing will enable us to execute our record-high order backlog and continue supporting our growth initiatives", stated Frédéric Dugré, President and CEO of H₂O Innovation.

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, 2011 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 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.