Municipal ultrafiltration water treatment systems to be provided by H2O Innovation in U.S., Canada

QUEBEC CITY, PQ, Canada, March 31, 2010 -- H2O Innovation has been awarded new contracts totaling CAD $3.7 million to provide custom-built water treatment systems for municipal and industrial end-users, mostly in the United States and, to a lesser extent, in Canada...

Mar 31st, 2010

QUEBEC CITY, PQ, Canada, March 31, 2010 -- H2O Innovation Inc., a complete water treatment solutions company providing custom designed systems along with specialty chemicals for membrane filtration systems, announces today that it has been awarded new contracts totaling $3.7 million*. These contracts will see H2O Innovation provide custom-built water treatment systems for municipal and industrial end-users, mostly in the United States and, to a lesser extent, in Canada. These contracts bring the Company's sales backlog to $14.5 million. The Company's sales backlog is comprised entirely of systems and equipment sales and does not include sales of services and consumable products, nor does it include H2O Innovation India's sales backlog.

The majority of the contracts announced today will see H2O Innovation design, manufacture, and deliver ultrafiltration ("UF") membrane systems for the production of municipal drinking water from surface water sources, including two integrated ultrafiltration and reverse osmosis systems for municipal water treatment plants located in North Dakota, United States. These two contracts are the Company's first municipal contracts in the state of North Dakota and the first sizable municipal contracts in the U.S. Midwest, a region in which the Company is devoting energy to increase its level of municipal sales by leveraging the capacities of its Minneapolis operating base.

"These contracts are the result of H2O Innovation's experience in designing ultrafiltration systems based on our knowledge and our know-how of the design requirements for an efficient surface water UF system. Ultrafiltration systems represent a growing share of the membrane systems market. Over the years, H2O Innovation has accumulated multiple references of high-performance UF systems that are designed to maintain their performance level at all times in environments where source water characteristics are constantly changing," stated Frédéric Dugré, President and CEO of H2O Innovation.

Another contract announced today will see H2O Innovation design, manufacture, and deliver an ultrafiltration system for a residential development and wilderness resort in Northern Alberta, Canada. This contract is the second project signed in this region by the Company in the last twelve months. Other smaller contracts awarded to H2O Innovation will see it manufacture industrial process water production systems and components, mostly for clients operating in the energy sector in the United States and Canada.

H2O Innovation designs and manufactures ultrafiltration systems for a number of water filtration applications such as the production of drinking water, and the treatment of process water, or as a pretreatment to nanofiltration and reverse osmosis systems. With a lower energy consumption level than reverse osmosis, the ultrafiltration water treatment process acts as a physical barrier and blocks bacteria and viruses, suspended solids, pre-oxidized dissolved contents, as well as most molecules, proteins, and high molecular-weight organic polymers. H2O Innovation's system design seeks to provide extended operating lifetimes and to prevent irreversible fouling of the membranes, maximizing their operating costs. The Company's expertise in designing integrated UF-RO systems is actively being shared with the sales and engineering teams of H2O Innovation India, its Indian joint venture, for application in the Indian industrial market.

About H2O Innovation
With 10 years of experience developing water treatment solutions, H2O Innovation is establishing itself as a key player in sustainable development and clean technologies in North America and abroad. H2O Innovation designs, develops, produces, and integrates state-of-the-art custom-built water treatment systems for the production of drinking water, the reclamation of water, the treatment of wastewater and industrial process water in the municipal, commercial, industrial, oil & gas, mining, and energy markets. Additionally, the Company offers complete operating and maintenance solutions for membrane filtration and reverse osmosis systems. H2O Innovation has approximately 100 employees and eight offices including three manufacturing plants in Canada and the United States and is a founding partner of H2O Innovation India, a joint venture with Chembond Chemicals of Mumbai, India. Shares of H2O Innovation are listed on the TSX Venture Exchange (HEO) as well as on the NYSE Euronext Alternext Exchange (MNEMO: ALHEO). For more information about H2O Innovation, visit the Company's website at

*All amounts in Canadian dollars unless otherwise stated.


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