Mr. Marc Blanchet reports

H2O INNOVATION: PWT(TM) ANNOUNCES NEW DISTRIBUTOR IN SAUDI ARABIA AND SECURES FIRST STOCKING ORDERS OF SPECTRAGUARD(TM) ANTISCALANT

H2O Innovation Inc. has executed a distribution agreement between its subsidiary PWT, specialized in membrane filtration specialty chemicals, and Chemsbro, provider of integrated chemical solutions and specialty chemicals for water and waste water treatment plants in Saudi Arabia. In complement to this distribution agreement, Chemsbro received first stocking orders of SpectraGuard antiscalant which would be used notably by two sea water desalination plants in Saudi Arabia.

Founded in 2005, Chemsbro is a member of SBCC Water Group that includes SAWACO-Water Desalination and Suido Kiko Middle East. Chemsbro is also known as a leader in niche industrial sectors as well as a consultant and troubleshooter for membrane-based desalination plants. While its headquarters reside in Jeddah, Saudi Arabia, Chemsbro has many other offices across the country.

"Chemsbro is delighted to establish a unique relationship with PWT. This partnership will allow PWT to enter the Saudi market and benefit from the competitive edge that Chemsbro enjoys in the public and private sectors. For its part, Chemsbro will benefit from the experience and research and development capabilities of PWT in the membrane-based desalination industry," added Nizar Kammourie, chief executive officer of Chemsbro.

Chemsbro's main customers are the Water and Electricity Ministry of Saudi Arabia, National Water Company, the Saudi Industrial Property Authority (Modon), and many industrial companies in Saudi Arabia. Among these customers, Chemsbro has started to provide the SpectraGuard antiscalant to two sea water desalination plants owned by SAWACO.

Furthermore, Chemsbro has been awarded a three-year contract with the City of Riyadh, the capital of Saudi Arabia, to supply services and specialty chemicals for seven water treatment plants, which represent about 30 per cent of the water in the city. This contract represents a great opportunity for PWT to get its products used in major water treatment plants of Saudi Arabia.

"We are very excited about the business venture with Chemsbro. We are positioning ourselves to establish a presence in Saudi Arabia, the world's biggest desalination market. Many initiatives and huge investments are done worldwide to promote water efficiency and Saudi Arabia differentiates itself by its waste water reuse market, which is the third largest in the world. Through our unique specialty products for both desalination and waste water reuse, we are confident to capitalize on those opportunities. We see a lot of potential to repeat our global success story in Saudi Arabia with the support of our partner Chemsbro," stated Gregory Madden, vice-president, specialty products and services, with responsibility for the Piedmont and PWT business units.