H₂O Innovation Announces Signature Of New Contracts For An Amount Of $8.8M And Reaches New High Of $31.6M In Its Sales Backlog

All amounts in Canadian dollars unless otherwise stated.

H2O Innovation Inc. (“H2O Innovation” or the “Company”) announces recently that it was recently awarded $8.8M in new contracts. These new contracts bring the Company’s order backlog for water treatment projects to $31.6M as of May 20, 2014, excluding backlog from its Specialty Products and Services division (PWT, Piedmont and H2O Innovation Maple).

Amongst the contracts announced today, the most significant is a 30 MGD (113,562 m3/day) hollow fiber ultrafiltration (UF) membrane system to replace the existing conventional Montevina Water Treatment Plant (WTP) owned and operated by the San Jose Water Company. The Montevina WTP will treat rainfall collected in the Santa Cruz Mountains watershed and provide potable water to the Town of Los Gatos and surrounding West Valley communities. For this design-build project, H2O Innovation will team up with HDR Constructors, Inc. and will be responsible for the design, fabrication, installation and commissioning of the new 30 MGD UF system. H2O Innovation was selected amongst 3 other bidders as the proposed system had the most attractive net present value for the end-user when considering both the initial capital cost and the long term operating cost. The UF system will incorporate 840 of Inge’s dizzer modules, with robust Multibore fibers, using their T-Rack 3.0 configuration.

Prior to final design and fabrication of the full scale system, a proof pilot will be performed to validate the power consumption, chemical consumption and membrane performance. ‘’This system will be our largest UF reference and shows one more time that our strategy to be able to offer different UF modules is appreciated and valued by our customers and is increasingly popular in the industry’’ stated David Faber, Director, Systems Sales - USA of H2O Innovation.

The second most significant contract announced today will be executed in close collaboration with the Canadian engineering firm Groupe SM International (SMi). SMi, well-established in North Africa, has teamed up with H2O Innovation to supply one of their institutional customers in Maghreb with fifteen (15) mobile water treatment units. Equipped with media filtration, reverse osmosis, UV and chlorination, the robust trailers will be able to purify water from different sources of water. Each unit will treat approximately 40 m3/day (10,500 GPD) of water.

Finally, the Company will supply membrane filtration equipment for two potable water treatment plants and one wastewater treatment plant for clients located in Manitoba and Quebec.

“As the Company’s backlog for water treatment projects is growing steadily, the average project value is also increasing. This trend is clearly showing that our decision to expand the water treatment project sales team in North America has a positive impact for the Company’s growth. This backlog coupled with the on-going sales in the Specialty Products and Services division gives the Company the ability to have a more efficient, more productive and, we believe, more profitable business operation”, said Frédéric Dugré, President and Chief Executive Officer of H2O Innovation.

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