Hydroxyl Systems licenses ActiveCell environmental technology to Infilco Degremont

VICTORIA, British Columbia, Canada, June 15, 2006 -- Hydroxyl Systems Inc. announced yesterday it awarded Infilco Degremont, Inc. (IDI), headquartered in Richmond, VA, an exclusive license to market and distribute ActiveCell™ Hybrid technology for capacity upgrades and environmental process enhancements of municipal wastewater treatment facilities in the United States.

A subsidiary of SUEZ Environment, Infilco Degremont is a leading provider of integrated water solutions across North America and throughout the world. Under this agreement, Infilco Degremont will provide complete design, engineering, project management, marketing, and distribution of ActiveCell Hybrid technology.

"With Infilco Degremont's advanced biological process knowledge, engineering capabilities, piloting program, and extensive distribution network, Hydroxyl has the ideal partner to grow our business within this important market," stated Dan Turner, Vice President Sales of Hydroxyl Systems, "Hydroxyl's ActiveCell Hybrid process provides municipalities the shortest payback solution for wastewater facility upgrades, delivering high performance treatment with process flexibility. This agreement strategically enhances the position of both companies within this important market sector."

Joe Giannone, COO of Infilco Degremont said, "After an extensive market survey to find the best available hybrid technology, we concluded that Hydroxyl's ActiveCell™ Hybrid technology was unparalleled in the field of media-based solutions that increase the performance and capacity of municipal wastewater treatment plants. We believe the combination of both companies' technology, expertise, and strong brand recognition represents the ideal next-generation solution for publicly-owned wastewater facility upgrades. We are confident that this relationship will be mutually beneficial and will leverage our respective strengths."

ActiveCell Hybrid technology significantly enhances performance in conventional municipal wastewater treatment facilities by integrating biofilm carrier technology within existing treatment processes. Biofilm carriers provide a dynamic surface area that sustains heterotrophic and autotrophic bacteria within protected cells, yielding high-rate and reliable biodegradation productivity. This added productivity enables facilities to meet population demand and more stringent regulatory discharge requirements.

Increasing government regulation of nutrient discharges (levels of nitrogen and phosphorus in effluent from publicly-owned wastewater treatment facilities), accelerating population growth, and increased water scarcity are contributing greatly to the fast rate of growth in the municipal wastewater treatment market sector. The EPA has estimated that about 1700 plants will require upgrades to advanced treatment to meet foreseeable needs; many others will require capacity increases. One of the most cost-effective technologies to upgrade these existing plants without facility expansion is the ActiveCell™ Hybrid process.

Hydroxyl Systems Inc. (www.hydroxyl.com) is a global leader of environmental water process products and technologies. For over a decade, Hydroxyl has serviced a diverse array of industries including food and beverage, cruise and ferry, chemical, municipal, commercial, and institutional markets. Hydroxyl Systems Inc. is a privately held company founded in 1993 with headquarters in Victoria BC, Canada. The company is recognized internationally for the development and marketing of environmental water process technologies including the ActiveCell™ biofilm carrier process, CleanSea^® shipboard water process, and PhotoStack™ advanced oxidation process.

Infilco Degremont (www.infilcodegremont.com) is the American subsidiary of Degrémont group. Degremont is the water treatment specialist within Suez Environment. With business in over 70 countries and 4,000 staff, Degremont generated sales of EUR 0.96 billion [US$1.21 billion] in 2005.

Suez Environment (www.suez-environnement.com), a branch of the Suez Group (www.suez.com), supplies services, plant and equipment essential to life and to environmental protection: drinking water production and distribution, wastewater collection and treatment, waste processing and recycling. Backed by its experience in the water and waste sectors, Suez Environment has a wide-ranging portfolio of know-how, providing sustainable solutions for local authorities and businesses. Suez Environment employs over 72,130 people worldwide and generated EUR 11.1 billion [US$14.03 billion] in sales in 2005.

Also see:
-- "Hydroxyl, Aquapoint announce ActiveCell license agreement"
-- "Hydroxyl unveils new brand identity"
-- "Earthquake on the Island of Java: Suez Environment sends experts and equipment to relieve water problems"
-- "Degremont wins US$188 million contract to design, build and operate a wastewater transfer and treatment system in Lusail, Qatar"
-- "Signing of wastewater treatment agreement marks new step in strategic partnership between Suez, Chongqing"

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