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.

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