H2O Innovation (2000) Inc. ("H2O Innovation" or the "Company")(TSX
VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO) announces the first quarter results for
fiscal year 2008-2009. During this period, H2O Innovation recorded 126% sales
growth-mainly in the United States market-and a gross margin topping 20% for a
fifth consecutive quarter.




CONSOLIDATED RESULTS
------------------------------------------------------------
                                          Three-month period
                                         ending September 30
------------------------------------------------------------
(Unaudited)                         2008                2007
------------------------------------------------------------
                                    $CAD                $CAD
------------------------------------------------------------
Sales                          5,549,457           2,456,220
------------------------------------------------------------
Gross margin                   1,352,926             497,013
------------------------------------------------------------
Gross margin                          24%                 20%
------------------------------------------------------------
EBITDA                            29,927            (864,006)
------------------------------------------------------------
Net loss for the period
 and comprehensive results      (409,271)           (977,808)
------------------------------------------------------------
Basic and diluted net
 loss per share                   (0,009)             (0,028)
------------------------------------------------------------



For the three-month period ending September 30, 2008, sales increased by 126%,
for a total of $5,549,457 compared to $2,456,220 for the same period ended
September 30, 2007. Forty-two percent (42%) of this growth is organic; the
remainder (58%) is related to the acquisitions of Sigma Environmental Solutions
Inc., Wastewater Technologies, Inc. and Itasca Sytems, Inc. completed by the
Company during the last year.


Gross margin amounted to $1,352,926 for the period, compared to $497,013 for the
comparable period of 2007. Gross margin amounted to 24%, a 20% increase over the
same period of the previous financial year. This is the fifth consecutive
quarter in which H2O Innovation had a gross margin over 20%. EBITDA (Earnings
Before Interest, Taxes, Depreciation and Amortization) for the quarter was
$29,927, compared to ($864,006) for the same period ended September 30, 2007.
The net loss has dropped significantly, from $977,808 ($0.028 per share) for the
three-month period ended September 30, 2007, to $409,271 ($0.009 per share) for
the same period ended September 30, 2008.


Before the change in operating working capital, operating activities generated
$49,243 in cash for the period ended September 30, 2008 compared to a $780,600
use of cash for the comparable period ended September 30, 2007, marking a major
increase in 2008 given the 126% jump in sales over 2007.


RECENT HIGHLIGHTS

Acquisition in the United States

The first quarter of fiscal 2008-2009 was also marked by an important
acquisition. In line with the objectives outlined in its strategic plan, the
Company achieved higher market diversification through its acquisition of Itasca
Systems Inc. a company located in Minneapolis (Minnesota, United States) that
specializes in treating industrial wastewater using membrane filtration
technology, in particular for the energy sector. This acquisition diversifies
the services that the Company offers by enabling it to better serve the
industrial sector, reduce its relative dependence on the municipal market, and
maximize its business development potential.


Subsequent event

During the second quarter of fiscal 2008-2009, the Company announced has been
awarded a contract by Petro-Canada Oil Sands Inc. on behalf of Fort Hills Energy
L.P. to build six water treatment units for the Fort Hills mine (Alberta,
Canada), which is under construction. This $9,400,000 contract is the biggest in
H2O Innovation's history.


"This quarter was pivotal for H2O Innovation and much progress was made. The
achievements reflect management's energy and ongoing efforts to meet Company
development objectives. Over this period, management has taken actions that have
already led to Company growth and that are an indication of its undertakings to
generate positive cash flows and improve the Company's results" stated Frederic
Dugre, President and CEO.


The first quarter financial report is available on the Company's Website
(www.h2oinnovation.com) and on Alternext's site (www.alternext.fr). Additional
information on the Company is also available on SEDAR (www.sedar.com).


About H2O Innovation

H2O Innovation's mission is to design, develop, produce and integrate
state-of-the-art, environmental friendly products dedicated to the production of
drinking water, the treatment of wastewater and industrial processed water, and
the reclamation of water.


Prospective disclosures

This press release may contain prospective disclosures representing current
expectations of H2O Innovation and are subject to certain risks and
uncertainties. For details of these risks and uncertainties please refer to the
Company's Annual Information Form dated September 26, 2008 available on SEDAR
(www.sedar.com). H2O Innovation rejects any obligation to revise or update the
prospective disclosures contained in this press release.


The TSX Venture Exchange and the Alternext Exchange assume no responsibility for
the relevance or accuracy of this press release.
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