H20 Innovation Appoints Phenix to Board, Offers Options

Jan. 11, 2007

Guy Goulet, Chairman of the Board of H2O Innovation announced the nomination of Élaine C. Phénix to the Board of Directors of the Company. Furthermore, the management of H2O announces the grant of share purchase options.

Phénix has over 25 years of experience in the Canadian capital market, especially as Senior Vice-President, Underwriting, at Lévesque, Beaubien, Geoffrion Inc. (today National Bank Financial Inc.) and as Senior Vice-President, Capital Training at the Montreal Exchange. Since 1999, Phénix has served as a consultant in assets management and president of Phénix Capital Inc.. During her career, Phénix has been a member of 12 Boards of Directors of private and public companies and associations (six of which she is still a member).

H2O has also announced the grant of a total of 465,000 share purchase options to its directors and selected key personnel, in accordance with the terms and conditions of its share option plan. This grant is effective as of January 6th, 2007. Each share purchase option grants its holder the right to acquire one common share of H2O at a price of $ 1.20 before January 6th, 2012.

Source: H20 Innovation