Pionetics announces LINX Water System joint venture in China

Pionetics is entering in a joint venture with Beijing based Elantec to manufacture and sell the LINX water purification system for the Chinese market. They plan to build and sell LINX 120 drinking water system in China...

SAN CARLOS, CA, Dec. 20, 2005 -- In the wake of a pollution-induced water system shutdown in Harbin, China, Pionetics Corp. announced a joint venture with Elantec of Beijing, China under which the two companies will manufacture and sell the LINX® drinking water system for the Chinese market. Under the terms of the deal, Pionetics gains a strong foothold in the world's largest market for home water purification systems, and Elantec, which has about 20% of the Chinese market, obtains a totally new water purification system that wastes 80% less water during the purification process and works very well under conditions of low water pressure, which are typical throughout China.

Elantec is projecting 50,000 LINX systems in sales for 2006, rising to 150,000 in 2007.

"Water is an expensive commodity in China, so we are very excited about being able to offer Chinese consumers a water purification system that uses only a tenth as much water during the purification process when compared with traditional reverse osmosis systems," said Dan Wang, CEO of Elantec.

"And given the water purity challenges present in a country that is rapidly industrializing, we believe that a highly efficient purification system like LINX will be very popular here."

The LINX Drinking Water System is a breakthrough in water purification that promises better-tasting water with lower costs and higher efficiency than ever before possible. Designed to replace bulky systems based on decades-old reverse osmosis (RO) technology, the compact LINX delivers purer water in higher volume with less wasted water than any other product on the market, works well under low water pressure conditions, and is the only water purification system that allows users to adjust the taste of their purified water to suit their individual palates.

Unlike other methods that use harmful chemicals, LINX purifies water using only clean, efficient electricity and a proprietary ion exchange membrane to remove perchlorate, nitrites, nitrates, Arsenic III and V, potassium, lead, and other contaminants from water along with 90% of total dissolved solids.

LINX technology from Pionetics (www.pionetics.com) represents a new generation of water purification for a world in which pure water becomes scarcer every day. Without using any harmful chemicals, LINX technology eliminates 90% of total dissolved solids from water, delivers nearly twenty times more instantaneous water than other systems, eliminates storage tanks, and reduces wastewater. It is the only water purification technology that features Dial-A-TasteT, which allows users to selectively retain minerals in purified water to vary the taste according to their liking. Pionetics is funded by EPCOR Water Services, Firelake Strategic Technology Fund, LP, NGEN Partners, Pangaea Ventures Fund, RockPort Capital Partners, Topspin Partners, and Unilever Technology Ventures Fund BV, and is based in San Carlos, Calif.

Elantec (www.elanro.com) is a leading manufacturer and distributor of water treatment equipments for consumer and industrial markets in China. Through its direct marketing channel, with over 8,000 Dealers in 29 out of 30 States in China, Elantec commands about 20% of the consumer RO POU market. Elantec is privately owned by Daniel Wang with headquarters in Beijing, China.

Pionetics Corp. (www.pionetics.com) was founded in 1989 and is funded by NGEN Partners, EPCOR Utilities, Unilever Technology Ventures, RockPort Capital Partners, Topspin Partners, Pangaea Ventures, and Firelake Capital. With headquarters in San Carlos, Calif., it's currently entering the Asian market with partnerships and offices in China and India.

-- In other company news: "Pionetics receives the 2005 Technology Innovation of the Year Award"


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