QUEBEC CITY, QUEBEC -- (Marketwired) -- 05/24/16

(TSX VENTURE:HEO)(OTCQX:HEOFF)(ALTERNEXT:MNEMO:ALHEO) - H2O Innovation Inc. ("H2O Innovation" or the "Company") is proud to announce that it has recently secured, following a full-scale demonstration, a leasing contract of its Clearlogx® proprietary technology with one of the world's most famous PGA golf courses: Pebble Beach - Carmel Area Wastewater District, California. This contract, for a two-year period, will control and optimize the coagulant dosing of a 2 MGD (7,570 m3/day) membrane filtration plant. In addition, the Company has continued to expand its speciality chemical sales by adding six new municipal customers in the State of Colorado.

The addition of Clearlogx® at the Pebble Beach golf course will allow the existing membrane tertiary wastewater treatment plant to optimize its operating costs, prevent premature clogging of the submerged membranes and ultimately extending its membranes' life. As with most water reuse treatment systems, there is a continuous challenge with combating the fouling of ultrafiltration ("UF") membranes. In order to maintain filtrate production to an optimal level and avoid excessive membrane cleaning, Clearlogx® is used to control the coagulant injection and to maintain a proper pH level and a stability of the particle charge.

A Clearlogx® trial was conducted at the end of 2015, demonstrating a significant reduction in fouling that allowed for the desired production capacity to be maintained. Based on these results, Pebble Beach has decided to sign a two-year lease with the Company. As of today, the use of Clearlogx® has reduced the system's membrane fouling by at least 60%, while increasing the flow by 25%.

"The addition of Clearlogx® to our portfolio bridges and complements our two fundamentals business pillars: our water and wastewater projects and our specialty products & services (SP&S). The integration of this new technology into our company was performed quickly and efficiently. We have been able to create a value proposition for our customers by demonstrating the benefits of Clearlogx®: improving UF membrane plant performance and operating costs", stated Frederic Dugre, President and CEO of H2O Innovation.

Within six months following its acquisition, the Company has won six (6) new chemical supply contracts with municipalities in Colorado. Cumulatively, these new contracts provide a 40% increase in the annual total speciality coagulant sales.

About Clearlogx®

Clearlogx® is a proprietary technology, which precisely and continuously controls the feed of specialty coagulants used in water treatment to maintain a proper pH level and an optimum particle charge, while simultaneously improving overall treatment process efficiency. For more information, please visit www.clearlogx.com.

About H2O Innovation

H2O Innovation designs and provides state-of-the-art, custom-built, and integrated water treatment solutions based on membrane filtration technology for municipal, energy and natural resources end-users. Also, directly and through its affiliates, H2O Innovation provides products and services complementary to its membrane filtration and reverse osmosis systems. These products consist of a complete line of specialty chemicals, consumables and couplings. For more information, visit www.h2oinnovation.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Alternext Exchange accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Source:
H2O Innovation Inc.
www.h2oinnovation.com

Contact:
Marc Blanchet
+1 418-688-0170
marc.blanchet@h2oinnovation.com