December 22, 2008 16:25 ET

Richard A. Hoel Increases his Participation in H2O Innovation Inc.

QUEBEC CITY, QUEBEC--(Marketwire - Dec. 22, 2008) - Richard A. Hoel announces today that he acquired today a total of 1,263,886 common shares (the "Common Shares") in the share capital of H2O innovation Inc. ("H2O Innovation" or the "Corporation") (TSX VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO), representing approximately 2.67% of the issued and outstanding Common Shares of the Corporation.

After the transaction, Mr. Hoel, a director of the Corporation, is now the beneficial owner of a total of 5,886,214 Common Shares of H2O Innovation representing approximately 12.43% of the 47,367,212 issued and outstanding Common Shares of the Corporation as of December 22, 2008. In addition, Mr. Hoel also holds a total of 37,000 options to acquire up to 37,000 Common Shares under the stock option plan of the Corporation. His participation, assuming only the exercise of his options, would then represent a total of 5,923,214 Common Shares being 12.50% of the Common Shares then issued and outstanding.

The Common Shares were acquired by Mr. Hoel for investment purposes through the facilities of the TSX Venture Exchange.

Richard A. Hoel may, from time to time, acquire additional securities of H2O Innovation, dispose of some or all of the securities that he holds, or might hold, or continue to hold his current positions.

Richard A. Hoel will be filing a report (as contemplated by National Instrument 62-103 respecting the Early Warning System and Related Takeover Bid and Insider Reporting Issues) in connection with his acquisition of the Common Shares. For further information, or to obtain a copy of such report, please contact:

Richard A. Hoel
Suite 3500
225 South Sixth Street
Minneapolis, MN 55402-4629
Telephone: 612.604.6690

About H2O Innovation

H2O Innovation's mission is to design, develop, produce and integrate state-of-the-art, environmental friendly products dedicated to the production of drinking water, the treatment of wastewater and industrial processed water, and the reclamation of water.

The TSX Venture Exchange and the Alternext Exchange assume no responsibility for the relevance or accuracy of this press release.

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