H2O Innovation Inc. ("H2O Innovation" or the "Company") (TSX
VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO), a complete water treatment solutions
company providing custom designed systems along with water additives and
specialty chemicals for membrane filtration systems, announces it successfully
landed contracts worth a total of CAN$2.2 million within the last few weeks.
These contracts bring the Company's sales backlog at CAN$21.2 million (the sales
backlog figure includes a contract whose execution has been deferred, as was
announced by the Company by means of press release in November 2008). The
Company's sales backlog is uniquely comprised of systems and equipment sales and
does not include sales of services or consumable products, which represented
approximately a quarter of its total sales for the previous quarter (first
quarter of the current 2010 fiscal year).


These contracts will see H2O Innovation design, manufacture and deliver
custom-built water treatment systems for the production of drinking water by
reverse osmosis, for water reuse and for the treatment of wastewater. Some of
the contracts will also see the Company supply process equipment and parts.
These sales will be delivered to municipal and institutional end-users in
various U.S. regions including the Mid-Atlantic, Southeastern and Mountain
States. Some of the systems sales announced today have been funded in part by
funds from the American Recovery and Reinvestment Act of 2009.


"The signing in the last few weeks of these new contracts and sales
representatives in the United States is the result of the ongoing efforts
deployed throughout our company to expand our sales network and to maintain a
high level of bidding activity in the municipal drinking water sector", stated
Frederic Dugre, President and CEO of H2O Innovation Inc.


New sales representatives for wastewater treatment systems in the United States

Following a very successful participation at WEFTEC.09, the largest annual water
quality conference and exhibition in the United States, H2O Innovation continues
to gain momentum in the water reuse and wastewater treatment industry segments.
The Company has recently signed agreements with three new sales representation
agents for its wastewater treatment solutions-including its patented
Bio-Brane(TM) MBR for water reuse applications and its Bio-Wheel(TM) advanced
wastewater treatment system. These additional representatives cover Louisiana
and Mississippi, Southern New Jersey, Eastern New York and Long Island, and
Florida. With these three additional representatives, the Company's network now
totals more than 20 sales representatives in the United States for its water
reuse and wastewater treatment systems.


"We are happy to note that some of the contracts announced today originate from
opportunities that were brought to us by sales representatives signed just over
a year ago during the previous edition of WEFTEC. We continue to look for
additional highly networked and market knowledgeable representatives throughout
the United States and internationally for our water reuse and wastewater
treatment systems", concluded Frederic Dugre.


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 rejects any 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). For more information about H2O Innovation,
visit the Company's website at www.h2oinnovation.com


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