Mr. Marc Blanchet reports

H2O INNOVATION: UTILITY PARTNERS RENEWS FOUR CONTRACTS AND EXPANDS INTO NEW TERRITORY TOTALING $6.8 M

Utility Partners LLC, H2O Innovation Inc.'s subsidiary providing operation and maintenance (O&M) services in the United States, has recently renewed four municipal contracts and was awarded a project in New Mexico, which bring the corporation's O&M business backlog to $60.4-million.

The municipalities that renewed their O&M contracts with UP are located in the states of California, Mississippi, Georgia and New Hampshire. The first of them was extended for one year with a four-year option, renewable annually. The second contract was signed for an additional five years and includes consumables products as well as membrane replacement for the entire duration of the contract. Specifically for this contract, UP, with H2O Innovation's help, built an added-value proposition for this municipality by engineering the membrane replacement at optimal cost and performance. By doing so, the city benefits from H2O Innovation's membrane expertise -- thus improving its operating costs. As for the other two contracts, they were renewed for an additional year each.

UP also won a new operation and maintenance services contract for an initial period of three years in the state of New Mexico. "This new contract will allow us to establish ourselves in a new territory, the state of New Mexico, where we have not operated any water treatment system so far. This gives us the energy and optimism to keep expanding into new markets. The exceptional customer service provided by our team has definitely played a crucial role in the renewal of these four operation and maintenance municipal contracts. We are also very enthusiast about the synergy between H2O Innovation's and UP's teams. The corporation recently benefited from cross-selling opportunities when H2O Innovation's engineering team was called upon to support UP's team on O&M projects in New Hampshire and Mississippi. The combination of the companies' expertise definitely makes us stronger and better equipped," stated Bill Douglass, vice-president of the operation and maintenance division of H2O Innovation and managing director of Utility Partners.

About H2O Innovation Inc.

H2O Innovation designs and provides state-of-the-art, custom-built and integrated water treatment solutions based on membrane filtration technology for municipal, industrial, energy and natural resources end-users. The corporation's activities rely on three pillars, which are: (i) water and waste water projects, (ii) specialty products and services, including a complete line of specialty chemicals, consumables, specialized products for the water treatment industry, as well as control and monitoring systems, and (iii) operation and maintenance services for water and waste water treatment systems.

Utility Partners operates, maintains and repairs water and waste water treatment plants, distribution equipment, and other water utilities for all of municipal customers. It currently employs 360 employees for the operation of 38 utilities in seven U.S. states.