O&M Backlog Reaches $130.1 M with New Contracts and Renewals as H2O Innovation Consolidates Brand

All amounts are in Canadian dollars unless otherwise stated.

(TSX: HEO) – H₂O Innovation Inc. (“H₂O Innovation” or the “Corporation”) is proud to announce the successful award of two new contracts for industrial clients as well as the extension of three existing contracts for the operation and maintenance (O&M) of water and wastewater treatment systems. These projects, with a combined annual value of $4.6 M, bring the Corporation’s O&M backlog to $130.1 M, further solidifying its position in the industry.

The first new project is for an industrial workers’ camp located in northern Alberta. H₂O Innovation will provide O&M operations for the water and wastewater facilities for an initial three-year period. Additional scope will be added after the first year with the hiring of a new employee. “This new contract is a great example of how our business model generates synergies across our different business lines, as the customer came back to us after we provided a nanofiltration system for its drinking water plant back in 2008, and a reverse osmosis skid for its central processing facility a few years after that,” stated Frédéric Dugré, President, Chief Executive Officer and co-Founder of H₂O Innovation.

The second new project is for a manufacturing and distribution client located in the Hudson Valley, in the State of New York. The wastewater facility is positioned to discharge into the New York City watershed and is regulated and funded by the Department of Environmental Protection. The new contract has been granted to the Corporation for an initial period of five years. H₂O Innovation also renewed three existing O&M contracts in the same region, which highlights the clients’ level of satisfaction with the Corporation’s expertise, commitment to safety, and dedication to meeting environmental compliance regulations.

These developments come on the heels of the Corporation’s July 1, 2023, rebranding of two recently acquired businesses, JCO Inc. (JCO) and Environmental Consultants, L.L.C. (EC), under the H₂O Innovation brand. This strategic move further consolidates the Corporation’s position in the market and enhances its ability to deliver comprehensive and innovative water and wastewater management solutions. As part of its growth strategy, the Corporation acquired JCO and EC in December 2021. By rebranding these businesses, the Corporation aims to streamline its operations, unify its brand identity, and capitalize on the collective strengths of its O&M business.

"This rebranding marks an exciting milestone, as we continue to strengthen our position as a leading player in water and wastewater treatment operations and maintenance," added Frédéric Dugré. "The integration of JCO and EC under the H₂O Innovation brand allows us to provide our clients with a comprehensive and diversified portfolio of solutions to address their unique water management challenges." Customers can expect a seamless transition as all business operations and communications now operate under the H₂O Innovation name.

Prospective Disclosures

The information and statements contained in this press release and in other Corporation’s oral and written public communications regarding the Corporation’s business and activities and/or describing management’s objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of the applicable securities legislation. Forward-looking statements include the use of words such as “anticipate,” “if,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” and other similar expressions, as well as those usually used in the future and the conditional, although not all forward-looking statements include such words. H₂O Innovation would like to point out that forward-looking statements involve a number of uncertainties, known and unknown risks and other factors which may cause the actual results, performance or achievements of the Corporation, or of its industry, to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Major factors that may lead to a material difference between the Corporation’s actual results and the projections or expectations set forth in the forward-looking statements include, without limitation, the execution and performance of the services described in the O&M contracts, in a timely manner and without additional costs, considering the challenges resulting from the labor shortage and the inflation rate on good and services, the creation of synergies between the Corporation’s business pillars despite the competitive environment in which it operates, the successful integration of previously acquired businesses and such other risks as described in the Corporation’s Annual Information Form dated September 27, 2022, which is available on SEDAR (www.sedar.com). The forward-looking information contained in this press release is based on information available as of the date of the release and is subject to change after this date. Unless otherwise required by the applicable securities laws, H₂O Innovation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About H₂O Innovation

Innovation is in our name, and it is what drives the organization. H₂O Innovation is a complete water solutions company focused on providing best-in-class technologies and services to its customers. The Corporation’s activities rely on three pillars: (i) Water Technologies & Services (WTS) applies membrane technologies and engineering expertise to deliver equipment and services to municipal and industrial water, wastewater, and water reuse customers, (ii) Specialty Products (SP) is a set of businesses that manufacture and supply a complete line of specialty chemicals, consumables and engineered products for the global water treatment industry, and (iii) Operation & Maintenance (O&M) provides contract operations and associated services for water and wastewater treatment systems. Through innovation, we strive to simplify water. For more information, visit www.h2oinnovation.com.

Source:

H₂O Innovation Inc.

www.h2oinnovation.com

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