Hydroxyl Systems Licenses ActiveCell™ Environmental Technology to Infilco Degremont

June 16, 2006

Hydroxyl Systems, Inc. announced that it awarded Infilco Degremont, Inc. (IDI), headquartered in Richmond, Va., an exclusive license to market and distribute ActiveCell™ Hybrid technology for capacity upgrades and environmental process enhancements of municipal wastewater treatment facilities in the U.S.

A subsidiary of SUEZ Environment, Infilco Degremont is a leading provider of integrated water solutions across North America and throughout the world. Under this agreement, Infilco Degremont will provide complete design, engineering, project management, marketing and distribution of ActiveCell Hybrid technology.

“With Infilco Degremont’s advanced biological process knowledge, engineering capabilities, piloting program and extensive distribution network, Hydroxyl has the ideal partner to grow our business within this important market,” said Dan Turner, vice president sales of Hydroxyl Systems. “Hydroxyl’s ActiveCell Hybrid process provides municipalities the shortest payback solution for wastewater facility upgrades, delivering high-performance treatment with process flexibility. This agreement strategically enhances the position of both companies within this important market sector.”

Joe Giannone, COO of Infilco Degremont said, “After an extensive market survey to find the best available hybrid technology, we concluded that Hydroxyl’s ActiveCell™ Hybrid technology was unparalleled in the field of media-based solutions that increase the performance and capacity of municipal wastewater treatment plants. We believe the combination of both companies’ technology, expertise, and strong brand recognition represents the ideal next-generation solution for publicly owned wastewater facility upgrades. We are confident that this relationship will be mutually beneficial and will leverage our respective strengths.”

ActiveCell Hybrid technology significantly enhances performance in conventional municipal wastewater treatment facilities by integrating biofilm carrier technology within existing treatment processes. Biofilm carriers provide a dynamic surface area that sustains heterotrophic and autotrophic bacteria within protected cells, yielding high-rate and reliable biodegradation productivity. This added productivity enables facilities to meet population demand and more stringent regulatory discharge requirements.

Increasing government regulation of nutrient discharges (levels of nitrogen and phosphorus in effluent from publicly-owned wastewater treatment facilities), accelerating population growth, and increased water scarcity are contributing greatly to the fast rate of growth in the municipal wastewater treatment market sector. The EPA has estimated that about 1,700 plants will require upgrades to advanced treatment to meet foreseeable needs; many others will require capacity increases. One of the most cost-effective technologies to upgrade these existing plants without facility expansion is the ActiveCell™ Hybrid process.

Source: Hydroxyl Systems, Inc.

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