H2O Innovation (2000) Inc. ("H2O,")(TSX VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO)
announces that it has executed a CA$3,500,000 loan with a Canadian chartered
bank. Also, following the recent acquisition of Itasca Systems Inc., the
management has reviewed all of its operating processes and, in implementing the
resulting synergies, plans to reduce its annual fixed charges for sales and
administrative expenses by some CA$750,000, on a consolidated basis.


Due to the growth of its backlog (CA$21 M as at August 26, 2008), the H2O
management deemed it appropriate to complete this financing in order to provide
required cash-flow for the execution of the contracts over the next few months.
The CA$3.5 M will be allocated to H2O's working capital fund. It is the first
H2O's long-term bank financing, which objective is to create reasonable leverage
to its working capital.


At the same time, adjustments made during the first quarter of this fiscal year
as part of efforts to integrate various companies acquired over the past few
months, has the objective to increase internally working capital generated from
operating activities without impacting the company's organic growth strategy.
"This budget in which all members of the management team have participated, will
allow us to optimize use of our human and material resources. More directly, we
believe that increasing cash-flow generated from our operations will provide us
leverage to future acquisitions", explained president and CEO Frederic Dugre.


About H2O

H2O's mission is to develop, manufacture and market innovative,
environment-friendly, products intended for drinking water production,
wastewater treatment and industrial processes.


Forward-Looking Statements 

This press release contains forward-looking statements which reflect H2O's
current expectations regarding future events. The forward-looking statements
involve risks and uncertainties. Actual results could differ materially from
those projected herein. H2O rejects any obligation to revise or update the
forward-looking statements contained in this press release.
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