Aker Yards orders Hydroxyl CleanSea for world's largest passenger ships

VICTORIA, BC, Canada, June 22, 2007 -- Hydroxyl Systems Inc. announced today that it has been awarded contracts from Aker Yards ASA of Finland. The contracts total in excess of $6.6M CAD for two Hydroxyl CleanSea® advanced wastewater treatment systems to be designed and installed for operation onboard Royal Caribbean Cruises' new Genesis Class vessels -- the world's largest passenger ships.

The new Genesis Class vessels are to be built at Aker Yards' shipyard in Turku, Finland, with the first already under construction. The first vessel, scheduled for delivery in Fall 2009, will be 220,000 gross registered tons when delivered to the world's second-largest cruise operator, Royal Caribbean Cruises, Ltd. (RCCL). The vessel will be over 40 percent larger than the next largest passenger ship in the world, with a length of 360 meters, a width of 47 meters, and accommodating 8,400 passengers and crew.

Royal Caribbean's Genesis vessels will introduce numerous technological advancements within the cruise industry. In particular, leading-edge environmental technology continues as a high priority in support of the Royal Caribbean's "Save the Waves®" initiatives. Hydroxyl's CleanSea® advanced wastewater purification systems will enable the Genesis Class vessels to reliably treat all biodegradable water streams generated onboard prior to safe discharge to the ocean. With CleanSea in operation onboard, Genesis Class vessels will be able to operate within sensitive aquatic and coastal regions, while minimizing their impacts on the environment. Under the terms of the contracts, Hydroxyl's CleanSea technology will eliminate compounds from wastewater to levels lower than those stipulated by the most stringent ocean discharge standards in the world.

"Aker Yards and Royal Caribbean are both widely respected as leaders and innovators in the cruise industry and the fact that Hydroxyl has been selected for these important projects is something we are very proud of", stated Hydroxyl President and CEO, Carolyn Rogers.

The CleanSea systems supplied for the Genesis Class vessels will employ Hydroxyl's ActiveCell™ biofilm carrier process for high-rate biodegradation of wastewater onboard, as well as Hydroxyl's patent-pending ActiveFloat™ dissolved air flotation equipment, for particulate solids removal. Both proprietary technologies enhance wastewater treatment process reliability as well as decrease space requirements and system lifecycle costs. Comparable CleanSea systems are operating or are in the process of installation onboard eight other Royal Caribbean vessels.

"These contracts are a testament to the innovative capabilities of Hydroxyl's technology, and to the strong relationships our team has built with both Aker Yards and Royal Caribbean. The combination of our technology and service continues to establish Hydroxyl as a market leader in the cruise industry", said Steve DePoli, Hydroxyl Vice President, Marine.

Hydroxyl Systems Inc. is an integrated systems provider of environmental technology for wastewater treatment. The company is recognized internationally for the development and marketing of ActiveCell™ biofilm carrier wastewater treatment systems, CleanSea® shipboard wastewater treatment systems, and PhotoStack™ advanced oxidation process technology.

Aker Yards is an international shipbuilding group focusing on sophisticated vessels. The group has a strong position both in terms of innovation, product range, technology, experience and capacity. The product range includes cruise vessels & ferries, merchant vessels, offshore & specialized vessels. Aker Yards comprises 17 yards in Brazil, Finland, France, Germany, Norway, Romania and Ukraine. Aker Yards has approximately 20,000 employees.

Royal Caribbean Cruises Ltd. is a global cruise vacation company that operates Royal Caribbean International and Celebrity Cruises, with a combined total of twenty-nine ships in service and six under construction. The company also offers unique land-tour vacations in Alaska, Canada and Europe through its cruise-tour division.

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