Mr. Gregory Madden reports

H2O INNOVATION: PROFESSIONAL WATER TECHNOLOGIES (TM) EXPERIENCES SUSTAINED GROWTH OF 25%, EXPANDS ITS INSTALLATIONS AND INCREASES ITS GLOBAL FOOTPRINT

H2O Innovation Inc. is providing an update on the activities of its specialty chemicals business unit known as Professional Water Technologies (PWT). Since the beginning of April, 2015, PWT has expanded its installations located in California due to the significant growth of its specialty chemicals' sales during the last 12 months. Additionally, a new distributor located in Brazil joins PWT's distributors network in order to further develop South American markets.

Expansion of its installations

At the beginning of April, 2015, PWT increased significantly its production and warehouse capacity, by around 60 per cent, by renting a new warehouse of approximately 7,640 square feet, adjacent to its headquarters in Vista, Calif. This new location will house most of the company's inventory and free up space in the existing building to expand manufacturing, cleaning and membrane autopsy work as well as laboratory services facilities. The addition of such a new functional warehouse will enable PWT to shorten its delivery time for domestic customers and international distributors.

Such increase in PWT's production and warehouse capacity is tied directly to significant increase in sales of specialty chemicals. As of today, PWT's sales of specialty chemicals surpass last year's sales by 25 per cent and the company is gaining important market shares in the reuse application industry with its anti-scalants and cleaners.

"We have seen an increase in demand for specialty anti-scalants that can handle the difficult chemistries involved in waste water and water reuse. Product development efforts over the past few years have allowed us to keep ahead of this demand. Expected growth is also fuelled by the increasing demand for new waste water and water reuse plants driven by the drought affecting California and other southern states," said Gregory Madden, vice-president of PWT.

PWT's flagship products, the dendrimer-based anti-scalants SpectraGuard and Titan, remain the best-selling chemicals across the markets and industries serviced by the company. The Asian market currently maintains its growth and U.S. sales are growing with the focus on municipal and industrial applications.

New South American distributor

PWT increases its global footprint by adding a new distributor located in Brazil, bringing to 28 the number of distributors worldwide. Nanoffshore is a company specialized in providing products and services for membrane-based seawater systems and for potable water on offshore platforms. As distributor, Nanoffshore will provide PWT access to several industries including the oil and gas industry, and will support PWT's ability to service this market.

With the arrival of another international distributor in PWT's team, the company is confident to keep its current growth momentum and successfully penetrate new markets.