March 17, 2009 08:30 ET

H2O Innovation Wins CAN$5.1 Million in Contracts

QUEBEC CITY, QUEBEC--(Marketwire - March 17, 2009) - H2O Innovation Inc. ("H2O Innovation" or the "Company") (TSX VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO) announces it has been awarded four new drinking water treatment and wastewater treatment contracts in the United States and Canada. These contracts totaling CAN$5.1 million bring the Company's sales backlog to CAN$24.6 million as at March 16, 2009. By winning these contracts, H2O Innovation reaffirms its enviable position in the North American municipal water treatment industry.

H2O Innovation has been awarded two municipal drinking water contracts in the United States. First, the Alameda County Water District has selected H2O Innovation to expand the capacity of its existing desalination facility, from 5 MGD to 10 MGD. H2O Innovation's performance on the design and supply of the original system in 2001 was a key factor in securing the contract. Under the new contract, the Company will design and furnish equipment and components for two reverse osmosis units that will be delivered to the District's existing Newark Desalination Facility. Water treated by this system will be blended with well water and chlorinated prior to distribution for potable use.

The second municipal drinking water contract signed by H2O Innovation involves the design, fabrication and supply of water filtration process equipment for a two-train reverse osmosis system with a combined capacity of 1.67 MGD for the Clay Center Public Utilities Commission, Kansas, to treat ground water for potable use. The equipment will be shipped fully shop assembled from our factory. H2O Innovation's solid list of reference installations in the municipal drinking water treatment domain, along with its expertise in developing state-of-the-art custom solutions were essential assets in obtaining these two contracts.

H2O Innovation has also signed two wastewater treatment systems contracts, one in Canada and one in the United States. Through its full-service office in Calgary, Alberta, H2O Innovation has been awarded a contract to build a 20,000 GPD wastewater treatment system for the Elinor Lake Resort property development in Lac La Biche County, Alberta, with the possibility of building a second phase to double the system's capacity. In the United States, H2O Innovation will deliver a 10,000 GPD wastewater treatment system using the proprietary Bio-Wheel™ technology to the Moss-Nuckols Elementary School in Louisa County, Virginia. H2O Innovation's systems were selected for their small footprint, ease of installation, and low operating costs.

Since its acquisition of Wastewater Technologies, Inc. in April 2008, H2O Innovation has continued the development of its wastewater treatment offering and to this end has recently expanded its sales network to cover additional U.S. states such as Texas, Oklahoma, Alabama and New York.

"Winning these contracts-which total CAN$ 5.1 million-reasserts the soundness of H2O Innovation's business model and demonstrates that we are well positioned to reap our share of the invigorated municipal water infrastructure market. None of these contracts could have been signed without the combined skills and experience of H2O Innovation's business units and their successful integration into a complete membrane technology expert" stated Frederic Dugre, President and CEO.

Prospective disclosures

This press release may contain prospective disclosures representing current expectations of H2O Innovation and are subject to certain risks and uncertainties. For details of these risks and uncertainties please refer to the Company's Annual Information Form dated September 26, 2008 available on SEDAR (www.sedar.com). H2O Innovation rejects any obligation to revise or update the prospective disclosures contained in this press release.

About H2O Innovation

Exclusively dedicated to water treatment, H2O Innovation is establishing itself as a key player in sustainable development and the field of clean technologies. H2O Innovation designs, develops, produces and integrates state-of-the-art water treatment systems for the production of drinking water, the treatment of wastewater and industrial processed water in the municipal, commercial, pharmaceutical, industrial, mining, and energy markets. H2O Innovation has over 100 employees and eight offices including two manufacturing and assembly plants in Canada and the United States. Shares of H2O Innovation are listed on the TSX Venture Exchange (HEO) as well as on the Alternext Exchange (MNEMO:ALHEO).

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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