Mr. Frederic Dugre reports

H2O INNOVATION EXPANDS ITS OFFICES TO CONSOLIDATE BUSINESS OPERATIONS IN TEXAS

H2O Innovation Inc. is relocating its Cypress and Spring operation and maintenance (O&M) offices into a single and larger industrial facility to better serve its clients and expand its market presence in the Houston area.

Since H2O Innovation entered the Houston market with the acquisition of Hays Utility South Corp. in 2018 and Gulf Utility Service Inc. (GUS) in 2020, it has experienced significant growth. This transition will consolidate and relocate the corporation's O&M offices in Texas to streamline its operations in one single 24,500-square-foot industrial facility. The key improvements in H2O Innovation's new facility include a customer service desk designed to cater to over 65 municipal utility districts (MUD), public utility districts, private water systems and industrial clients, which represent more than 37,448 connections, a new call-in centre, as well as more convenient premises and modern equipment for the corporation's 97 employees in Houston. The new facility's more functional parking lot will also provide increased convenience and ease of access for H2O Innovation's clients.

Furthermore, H2O Innovation will use an adjacent 1.5-acre laydown yard to optimize its service vehicle operations, as this new space will accommodate the corporation's fleet of over 100 vehicles. This relocation thus involves growth potential and aligns with H2O Innovation's objectives of expanding its market presence and fortifying its operational capabilities.

"We are excited about consolidating our operations into this facility. This strategic decision will allow us to better serve our clients and should position us for enhanced growth in the years to come. We also expect the consolidation of our two offices to improve the synergies within our team in the Houston area," stated Frederic Dugre, president, chief executive officer and co-founder of H2O Innovation.

The negotiations were facilitated by Transwestern Real Estate Services (TRS), a trusted partner in this pivotal move. The corporation's relocation to the new facility is expected to take place in November, 2023.

About H2O Innovation Inc.

Innovation is in its name, and it is what drives the organization. H2O Innovation is a complete water solutions company focused on providing best-in-class technologies and services to its customers. The corporation's activities rely on three pillars: i) water technologies and services (WTS) applies membrane technologies and engineering expertise to deliver equipment and services to municipal and industrial water, waste water and water reuse customers; ii) specialty products (SP) is a set of businesses that manufacture and supply a complete line of specialty chemicals, consumables and engineered products for the global water treatment industry; and iii) operation and maintenance (O&M) provides contract operations and associated services for water and waste water treatment systems.

We seek Safe Harbor.