April 22, 2008 16:04 ET

H2O Innovation Secures Three New Contracts Totaling Over CAN$2.6 Million

QUEBEC CITY, QUEBEC--(Marketwire - April 22, 2008) - H2O Innovation (2000) Inc. ("H2O")(TSX VENTURE:HEO)(Alternext:MNEMO:ALHEO) is pleased to announce the signing of three new contracts in California, Alberta, and northern Quebec. The contracts total CAN$2,675,000, bringing the firm's backlog to CAN$17 million.

The first contract was awarded to H2O's American subsidiary, Membrane Systems Inc. The membrane filtration system to be installed in the city of Oxnard, northwest of Los Angeles, California, will recycle 6 million gallons of wastewater per day to produce high quality drinking water using extremely effective membrane technologies. It is worth noting that water reuse is currently the fastest growing segment of the industry (source: Global Water Intelligence: "Global Water Market 2008: Opportunities in Scarcity and Environmental Regulations"). With this major contract, H2O has cemented its position in this emerging field.

H2O's Alberta division, Sigma Environmental, has been awarded a contract for the design and manufacture of a water purification system to be installed in an oil industry construction camp near Calgary, Alberta. Once up and running, the nanofiltration system will produce 84,000 gallons of quality drinking water per day for the camp workforce.

Lastly, H2O has also secured a contract to supply another BiH2Omobile-type mobile wastewater treatment unit to a mining camp in northern Quebec, Canada. Because wastewater treatment has become an environmental priority and with the implementation of new regulations requiring an increase in the quality of effluents, the mining camp once again sought out H2O's expertise and know-how to find a solution to its problem.

The ability to secure such diverse contracts in rapidly growing markets reflects the effectiveness of H2O's development strategy to acquire new technologies. Considering the booming economic development currently underway in western Canada, mainly in the mining and oil industries, H2O has every confidence in the excellent potential of its new Calgary division.

About H2O

H2O is pursuing its market development in the water treatment sector with a complete portfolio of membrane technologies and biological processes. H2O's mission is to develop, produce and market state of the art, environmental friendly products dedicated to the production of drinking water and the treatment of wastewater and industrial processed water.

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