QUEBEC CITY, June 12, 2001 — H2O Innovation has signed two major contracts with Magnola Metallurgy Inc. (MMI) and Circuit Foil of America for the development of industrial projects in the treatment of industrial process wastewater worth approximately $500,000. The deals are in addition to a contract reached with Agriculture and Agri-Food Canada.

In late June, H2O Innovation's industrial division will proceed with the installation of a membrane filtration system for Magnola Metallurgy Inc. This technology will provide MMI, a division of Noranda, with a supply of demineralized water for use in its industrial operations.

H2O Innovation was chosen from among a large group of competitors and was recommended by consulting firm Genivel-BPR.

H2O Innovation has also reached an agreement with Granby's Circuit Foil of America, whose headquarters are in Luxembourg. The equipment supplied by H2O Innovation will be used to produce demineralized water to be used in the final rinsing of copper sheets. This process eliminates all impurities to enable the manufacture of very high quality printed circuits. The project, developed in cooperation with consulting firm Tecsult, will double Circuit Foil of America's production capacity of demineralized water.

H2O Innovation has also finalized an agreement with Agriculture and Agri-Food Canada to set up a water demineralization system.

These contracts confirm that H2O Innovation has the right solutions for demineralization and the treatment of industrial wastewater systems. Meanwhile H2O Innovation continues to pursue its activities in the treatment of surface and groundwater to produce high quality drinking water.