H2O Innovation Announces the Departure of a Director and a New Chairman of the Board

QUEBEC CITY, QUEBEC, Jun 30 (MARKET WIRE) --
H2O Innovation Inc. (TSX VENTURE: HEO)(ALTERNEX: MNEMO:ALHEO) ("H2O
Innovation" or the "Company") announces that Mr. Guy Goulet has informed
the Company of his intention to resign from his position as Chairman of
the Board of Directors and Director of H2O Innovation. His resignation is
effective immediately. Mr. Goulet had been Chairman of the Board since
the Company's founding. He will continue to collaborate with the Company
in identifying and evaluating international sales and development
opportunities.

"On behalf of the Board and on my own behalf, I wish to thank Guy for all
he has done to help the Company grow over the years. He has been with the
Company since its founding, playing a key role in securing the early
funding that was essential to startup and implementation of our business
plan. We are very grateful for all the effort and enthusiasm he has
brought to his work," stated Frederic Dugre, President and CEO of H2O
Innovation Inc. The Company does not intend to replace Mr. Goulet on the
Board.

H2O Innovation also announces that the Directors have appointed Mr.
Philippe Gervais as the Company's new Chairman of the Board of Directors.
He will fill the position effective immediately. Vice-Chairman of the
Board, Mr. Gervais has been a Company Director since December 2001 and
has also served on the Board's various committees over the course of this
period.

Philippe Gervais graduated from the University of Montreal in 1988 with a
Bachelor of Science in Economics. From 1990 to 1993, he worked for the
Minister of National Revenue as Special Assistant responsible for the
implementation of the GST. His government service continued with
positions as Executive Assistant to the Federal Minister of Public Works
and Government Services and then as Political Attache to the Deputy
Premier and President of Treasury Board of Quebec. In 1995, Mr. Gervais
joined the Capital Hill Group, a government relations firm, as a senior
consultant. He also advises a handful of private and public companies as
a member of their Boards of Directors. His vast experience, excellent
reputation, and impressive track record make him a prized strategic
consultant among Canadian and American business and political decision
makers.

Following this announcement, H2O Innovation's Board of Directors is now
composed of John G. Booth, Frederic Dugre, Andre Duquenne, Philippe
Gervais, Richard A. Hoel, and Elaine C. Phenix.

About H2O Innovation

Exclusively dedicated to water treatment, H2O Innovation is establishing
itself as a key player in sustainable development and the field of clean
technologies. H2O Innovation designs, develops, produces, and integrates
state-of-the-art water treatment systems for the production of drinking
water, the reclamation of water, the treatment of wastewater and
industrial processed water in the municipal, commercial, pharmaceutical,
industrial, mining, and energy markets. H2O Innovation has approximately
100 employees and eight offices including two manufacturing and assembly
plants in Canada and the United States. Shares of H2O Innovation are
listed on the TSX Venture Exchange (HEO) as well as on the NYSE Euronext
Alternext Exchange (MNEMO: ALHEO).

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) nor the
Alternext Exchange accepts responsibility for the adequacy or accuracy of
this release.

Contacts:
H2O Innovation Inc.
Guillaume Ducharme
418-928-0234
guillaume.ducharme@h2oinnovation.com
www.h2oinnovation.com

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