- 16 November 2006 -

H2O closes acquisition of Membrane Systems Corp

H2O Innovation Inc has announced the closing, on October 1, 2006, of the acquisition of substantially all assets of Membrane Systems Corp by Membrane Systems, Inc, a new wholly-owned subsidiary of H2O incorporated under the laws of the State of Delaware, USA following the US$2,875,000 purchase at the beginning of September.

This acquisition will include a business place within the San Diego area ( California ), heart of the membrane technology development or the so called " Membrane Valley " and new sales and business opportunities for H2O in the United States , the largest growing market for water treatment technologies in the Americas.

On an unaudited basis for the six-month period ended on June 30, 2006, MSC had sales of US$4,312,456 and net earnings of US$477,362, sales backlog of approximately US$5,000,000 and a track record of more than 100 municipal and industrial water treatment systems installed in the United States.

"This transaction entitles H2O to strengthen its position in the water treatment industry. MSC will enable H2O to access US based market as well as an impressive reference list projects," explains Guy Goulet, president and CEO of H2O. "This strategic acquisition, in addition to contributing towards growth of MSC, is expected to increase significantly the revenues of H2O, enlarge H2O's customer base and leverage its expertise in the membrane sector."

www.h2oinnovation.com