Mr. Frederic Dugre reports

H2O INNOVATION BEGINS TRADING ON OTCQX MARKETPLACE AND ANNOUNCES A PROPOSED SHARE CONSOLIDATION OF ITS COMMON SHARES

H2O Innovation Inc.'s common shares have begun trading under the ticker symbol HEOFF, on the OTCQX marketplace in the United States, a marketplace operated by OTC Markets Group for established U.S. and international companies. The company will continue to trade on the TSX Venture Exchange under its existing symbol HEO and on Euronext/Alternext (France) under ALHEO. U.S. investors can find current financial disclosure and real-time Level 2 quotes for the company on the OTC Markets website.

"We are confident that trading in the United States on OTCQX is an important milestone in our growth strategy and shall increase significantly our visibility with the U.S. investor community. The United States represents an important part of our business activities since a great portion of our employees are based over there, and work in our major manufacturing and engineering premises located in Minnesota and California. In addition, a significant part of our sales backlog as well as existing customers are also located throughout the United States. These factors add to the relevancy to trade our common shares on OTCQX," stated Frederic Dugre, president and chief executive officer of H2O Innovation.

Roth Capital Partners LLC will serve as H2O innovation's principal American liaison (PAL) on OTCQX, responsible for providing professional guidance on OTCQX requirements.

Share consolidation

The company also announces that a proposition to consolidate its common shares will be included in the management proxy circular of the company for consideration and approval by its shareholders at the next annual and special meeting of shareholders to be held on Nov. 11, 2014.

"H2O Innovation is not a start-up company any more, since our growth has reached a certain level of maturity. Thus, as we are expecting growth in revenues and profitability in the coming years, we believe it is important to position the company on the right market at the right price," added Mr. Dugre.

H2O Innovation currently has 104,632,977 issued and outstanding common shares and proposes to consolidate its common shares on the basis of one postconsolidated common share for every five preconsolidation common shares on the effective date of the consolidation.

Following a share consolidation on a 1:5 basis, the company would have approximately 20,926,595 issued and outstanding common shares. The change in the number of issued and outstanding common shares that would result from the share consolidation would not materially affect any shareholders' percentage ownership in the company, although such ownership would be represented by a smaller number of common shares.

The proposed share consolidation is subject to the approval of the shareholders of H2O Innovation, by special resolution, and to the approval of the TSX Venture Exchange. Additional details on the proposed share consolidation will be outlined in the management proxy circular that will be filed on SEDAR.

Information to be available through S&P Capital IQ corporation records program

H2O Innovation's information would be made available via S&P Capital IQ corporation records listing program. As part of such program, a full description of H2O Innovation will be published in the daily news section of Standard & Poors' corporation records, a recognized securities manual for secondary trading in up to 38 states under the blue sky laws. S&P Capital IQ corporation records is available in print, CD-ROM and via the website, as well as through numerous electronic vendors.

The information about H2O Innovation to be made available through this program includes an in-depth description of the H2O Innovation's business operations, share price, dividend history, shares outstanding, company financial position, earnings, and full statements of income and financial position.

We seek Safe Harbor.