Mr. Frederic Dugre reports

H2O INNOVATION ANNOUNCES THE APPOINTMENT OF CHIEF FINANCIAL OFFICER AND CHIEF OPERATING OFFICER

H2O Innovation Inc. has nominated Marc Blanchet as chief financial officer and Guillaume Clairet as chief operating officer.

Mr. Blanchet is a lawyer admitted to the Quebec Bar in 2003. At the beginning of his career, Mr. Blanchet served as a business lawyer specializing in mergers and acquisitions and financing in different law firms in Quebec City and in Paris, France. Mr. Blanchet joined H2O Innovation in February, 2007, as director of corporate and legal affairs; he was appointed corporate secretary on Dec. 4, 2008, and, since July 1, 2011, he has held the position of vice-president, corporate and legal affairs, and corporate secretary.

The role of Mr. Blanchet as chief financial officer will focus on communication with the different stakeholders of the corporation, such as potential investors, shareholders and financial partners. He will also assume a pivotal role within the corporation's corporate and financial teams by co-ordinating acquisition projects and growth plans. His extensive knowledge of H2O Innovation, acquired over the last eight years within H2O Innovation's organization, gives him an invaluable expertise to lead the different mandates entrusted to him and to ensure that the whole organization is fully committed in the achievement of the corporation's financial, tactical and strategic objectives.

For his part, Mr. Clairet is a registered professional engineer in the province of Quebec, Canada, and holds an MBA from the University of San Diego in California. Over the last years, Mr. Clairet has served within the corporation, in sequence, as project manager, sales manager, director of business development and vice-president of strategic business development. Since July 1, 2012, he has held the position of executive vice-president of the corporation.

In order to clarify the role of Mr. Clairet within the operations of the corporation, a change in position and title became necessary. Working closely with the president and chief executive officer for the past 12 years in the progression, changes and growth of the corporation, Mr. Clairet has the necessary qualifications, skills and expertise to bring the organization to its next level of development, to improve its profitability and to optimize its business model. Mr. Clairet's extensive knowledge of the water treatment industry and active involvement in numerous industry associations are important and strategic assets necessary for the strong growth expected in the coming years.

"These appointments are perfectly in line with the corporation's development strategy, considering its progression during the last few years, its sustained growth and its future challenges. These changes will allow me to focus on the implementation and deployment of our strategic vision, which is based on more innovation, greater synergy across our different business lines, and a sustained growth both organically and by acquisition in order to complement our business model. Therefore, these changes within the corporation's senior management will allow me to further promote H2O Innovation with new clients, partners and shareholders," explained Frederic Dugre, president and chief executive office of H2O Innovation.