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H2O Innovation awarded $8 M of new contracts in North America

QUEBEC CITY, QUEBEC -- (Marketwired) -- 12/01/16 -- H2O Innovation Inc. ("H2O Innovation" or the "Corporation") (TSX VENTURE:HEO) (ALTERNEXT:MNEMO:ALHEO) (OTCQX:HEOFF) is proud to announce that it was awarded three (3) new contracts - two (2) wastewater projects using membrane bioreactor (MBR) technology and a drinking water project. These new contracts bring the Corporation's project sales backlog to $55 M, which is included in the $108 M consolidated backlog (combining Projects and Operation & Maintenance contracts).

The two first contracts won by the Corporation consist of wastewater treatment systems using the MBR technology. The first of them was awarded by the City of Decatur in Arkansas (USA) and currently has a sequential batch reactor (SBR) operating at a flow rate of approximately 1.2 MGD (4,542 m3/day). H2O Innovation was selected among five (5) suppliers to retrofit the existing process with a membrane bioreactor. The addition of the MBR will increase the system capacity to 3.8 MGD (14,385 m3/day) with future expansion to 4.6 MGD (17,413 m3/day), and will incorporate biological nutrient removal. The Corporation's unique approach will allow the retrofit to occur without interruption to the treatment system. This will be the first MBR system in the State of Arkansas. "We are very excited to be a part of this innovative MBR retrofit in Arkansas! There are hundreds of SBR water treatment systems in North America that require expansion and this project will certainly pave the way to secure similar opportunities in the future", stated Dr. Fraser Kent, P.Eng, Manager - Wastewater Process Engineering of H2O Innovation.

The second MBR project will treat up to 0.1 MGD (421 m3/day) of wastewater from the municipality of Riviere-Beaudette, in the province of Quebec (Canada). This will be the third MBR system installed by the Corporation in Quebec.

The third and last project is for a water treatment system using reverse osmosis (RO) and provides up to 2 MGD (7,571 m3/day) of drinking water for Cinco Municipal Utility District No. 1, in Fort Bend County, Texas (USA).

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, industrial, energy and natural resources end-users. The Corporation's activities rely on three pillars which are i) water and wastewater 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 wastewater treatment systems. 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.

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