H20 Innovation Concludes Agency Agreement with WATCO, Wins Contract in the United Arab Emirates

June 8, 2006

H20 Innovation 2000, Inc. has signed an agency agreement with WaterTechnologies & Contracting Company S.A.E., an Egyptian company active in water and wastewater treatment such as desalination, disinfection, softening, as well as biological and chemical treatments, mainly in Egypt and the United Arab Emirates. Following the signature of this agency agreement, H20 won its first contract through its agent WATCO, $140,000 project dedicated to Abu Dhabi.

The agreement stipulates that WATCO will be an exclusive agent of H20’s products in the territory defined as the Arab Republic of Egypt and the United Arab Emirates, and will seek clients forming part of the market in this territory. The impressive development of luxurious hotel complexes all along the Red Sea represents the main market that WATCO and H20 are aiming at.

Established in 1997, WATCO is an organization offering a wide range of services and managing more than 50 systems of water and wastewater treatment. The company works principally in the following sectors: tourism, chemicals and petrochemicals industries, cement, maritime and offshore platforms, energy production, and technological and manufacturing plants. WATCO presently counts an impressive list of references in water system installations such as the wastewater treatment plant at the Coral Bay Resort of Sharm, Egypt, or the reverse osmosis/desalination plant for drinking water at the Grand Plaza Resort of Hurghada, Egypt.

Moreover, H20 has obtained a first contract, through its local agent WATCO, for a water treatment system of an hotel chain complex in Abu Dhabi, capital of the United Arab Emirates. The project includes two reverse osmosis desalination package plants assembled into containers. The price of this first contract amounts to $140,000.

Following his visit in Egypt, Guy Goulet, president and CEO of H20, said, “The water treatment market in the Near East is booming right now considering the great demand for drinking water in relation to the construction and the development of new tourist infrastructures. There is an obvious need in the hotel industry for water and wastewater treatment, and WATCO is an important ally to introduce our products among this emerging market.” Goulet added, “As announced in the press release of May 10, 2006, the new acquisition of Membrane System Corp., a company based in California and specialized in water treatment systems using membrane technologies, will contribute directly to better serve this burgeoning market, considering its extensive experience in the desalination market.”

Source: H2O Innovation

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