HEO H2O Innovation Inc

H2O Innovation Inc. ("H2O Innovation" or the "Company") (TSX VENTURE: HEO)(ALTERNEXT: MNEMO:ALHEO), a complete water treatment solutions company providing custom designed water treatment systems along with operating and maintenance solutions, announces it has signed three contracts to design and manufacture wastewater treatment and water reuse systems in the United States. Totaling CAD$2.0 million, these contracts bring the Company's sales backlog to CAN$22.8 million and will be entirely completed within the current financial year. Signing these contracts reasserts H2O Innovation's position as a key player in the North American municipal water treatment industry covering both wastewater treatment and drinking water production, along with water reuse.

"We are very happy to announce the signing of these U.S. contracts for wastewater treatment systems using our patented Bio-Brane(TM) and Bio-Wheel(TM) technologies-particularly this week as we are exhibiting at WEFTEC.09 in Orlando, Florida, the largest annual water quality conference and exhibition in the United States. The signing of these contracts results from the continuous and ongoing expansion of our network of sales representatives in the United States as well from the sustained efforts deployed throughout the organization to ramp up our sales of our proprietary patented wastewater treatment and water reuse systems", stated Frederic Dugre, President and CEO of H2O Innovation.

First Bio-Brane(TM) system sold in California to serve in water reuse application

H2O Innovation's first wastewater project in California will be a 150,000 GPD Bio-Brane(TM) treatment plant built as two 75,000 GPD trains for the Town of Buttonwillow, California, located just off I-5 north of Bakersfield. The treated effluent will be discharged for reuse for the irrigation of hay fields in the vicinity. The Bio-Brane(TM) MBR (membrane bioreactor) system was selected by the town's engineer based on its competitive initial capital cost, ease of operation, low power consumption and on its ability to meet California Title 22 Requirements for Health and Safety Standards for Drinking Water. This project has all the characteristics to become H2O Innovation's showcase Bio-Brane(TM) water reuse project-in a high visibility and potential high growth region.

First Bio-Brane(TM) system contract in Colorado

H2O Innovation has been awarded its first contract in Colorado to design, build and deliver a wastewater treatment system. This contract was awarded to H2O Innovation by Cornell Companies, Inc., a major U.S. company owner and operator of correctional facilities. It will see H2O Innovation design, build and deliver a 150,000 GPD Bio-Brane(TM) membrane bioreactor wastewater treatment plant built in two 75,000 GPD portable steel trains. This plant will be delivered to the Hudson Correctional Facility currently under construction in Hudson, Colorado. The contract will be executed on a fast-track basis to meet the client's expedited delivery requirements.

First Bio-Wheel(TM) contract in Alabama

The Hueytown School District-located in Hueytown, Alabama-has awarded H2O Innovation a contract to design, build and deliver a 25,000 GPD Bio-Wheel(TM) wastewater treatment plant to be put in service at the Hueytown High School. This is H2O Innovation's first wastewater treatment plant in Alabama. The facility will be furnished as a package plant in a single steel tank to include equalization, denitrification and biological treatment.

"These first sales of Bio-Brane(TM) and Bio-Wheel(TM) systems in California, Colorado and Alabama expand H2O Innovation's coverage of the U.S. and directly contribute to better balancing the Company's revenue sources between sales of drinking water, process water and wastewater treatment systems. The Company is continuously looking to add new sales representatives throughout the United States and is enthused by the new system sales announced today", concluded Frederic Dugre.

About the Bio-Wheel(TM) and Bio-Brane(TM) wastewater treatment system

The Bio-Wheel(TM) biological wastewater treatment system has been developed to combine the compactness and flexibility of the activated sludge process with the stability and simplicity of the fixed film process. The Bio-Wheel(TM) system integrates the two processes in a single tank by using a simple mechanical drive system. The rotation of the Bio-Wheel(TM) provides alternating air and water cycles for the fixed film process, and aeration and mixing for the activated sludge process. With the Bio-Wheel(TM) system, advanced water treatment with high quality effluent is possible by biodegradation of the organic compounds, nitrification, and denitrification and uptake of excess phosphorus without using chemicals. The combination of the two processes provides high stability in a sturdy and reliable system, with low capital and operating costs.

The Bio-Brane(TM) membrane bioreactor is an advanced water treatment producing high quality effluent that surpasses the most strigent regulations. The Bio-Brane(TM) membrane bioreactor (MBR) combines the low power consumption of the Bio-Wheel(TM) patented technology with a highly efficient submerged membrane process. This wastewater treatment exceeds the most stringent standards for effluent discharge or reuse, and eliminates the requirements for a clarifier or a filter.

Prospective disclosures

This press release may contain prospective disclosures representing current expectations of H2O Innovation which 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 28, 2009 available on SEDAR (www.sedar.com). H2O Innovation is under no obligation to revise or update the prospective disclosures contained in this press release.

About H2O Innovation

Exclusively dedicated to water treatment, H2O Innovation is establishing itself as a key player in sustainable development and the field of clean technologies. 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, 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 and assembly plants in Canada and the United States. Shares of H2O Innovation are listed on the TSX Venture Exchange (HEO) as well as on the NYSE Euronext Alternext Exchange (MNEMO: ALHEO).

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Alternext Exchange accepts responsibility for the adequacy or accuracy of this release.

Contacts: Source: H2O Innovation inc. www.h2oinnovation.com Guillaume Ducharme 418-928-0234 guillaume.ducharme@h2oinnovation.com