PRESS RELEASE TSX-V: HEO For immediate release Alternext: MNEMO: ALHEO H2O Innovation opens new office in Ontario, reinforces its growth strategy in Canada

Quebec City, January 23, 2013 - (TSX-V: HEO) - H2O Innovation Inc. ("H2O Innovation" or the "Company") announces today that it has recently opened a new office in Burlington, ON - part of the dynamic Greater Toronto Area. Located in the heart of a North-American strategic area in the water treatment industry, this new office is another major positioning and growth platform for the Company, more particularly in the industrial, mining and municipal markets.
"We are most happy to open this new Ontario office, which will enable us to have access to a new strategic market. It also confirms H2O Innovation as a North-American leader in the water treatment industry. In addition to San Diego, CA and Minneapolis, MN, Ontario is the 3rd most important pole in North America for water

treatment technologies. Through the consolidation of our existing workforce in Ontario into a central location we will have another base where our expert technical resources will be able to make the most of their pioneering knowledge", stated Frédéric Dugré, President and Chief Executive Officer of H2O Innovation.

This new office will be led by Denis Guibert, Director - Engineering. The contact information is as follows: H2O Innovation
17-5100 South Service Road
Burlington (ON) L7L 6A5
Canada
Phone: 289-813-5533

Prospective disclosures

Certain statements set forth in this press release regarding the operations and the activities of H2O Innovation as well as other communications by the Company to the public that describe more generally management objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of securities legislation. Forward-looking statements concern analysis and other information based on forecast future results and the estimate of amounts that cannot yet be determined. Forward-looking statements include the use of words such as "anticipate", "if", "believe", "continue", "could", "estimate", "expect", "intend", "may", "plan", "potential", "predict", "project", "should" or "will", and other similar expressions, as well as those usually used in the future and the conditional, notably regarding certain assumptions as to the success of a venture. Those forward-looking statements involve a number of risks and uncertainties, which may result in actual and future results of the Company to be materially different than those indicated. Information about the risk factors to which the Company is exposed is provided in the Annual Information Form dated September 25,
2012 available on SEDAR (www.sedar.com). Unless required to do so pursuant to applicable securities legislation, H2O Innovation assumes no obligation to update or revise forward-looking statements contained in
this press release or in other communications as a result of new information, future events and other changes.

H2O Innovation Inc.

330, rue Saint-Vallier Est, Suite 340

Quebec City (Quebec) G1K 9C5

Canada

Tel. : +1 418-688-0170

Fax : +1 418-688-9259 www.h2oinnovation.com info@h2oinnovation.com

About H2O Innovation

H2O Innovation designs and provides state-of-the-art, custom-built, and integrated water treatment solutions based on membrane filtration technology to municipal, energy & natural resources end-users. H2O Innovation also provides a complete line of specialty chemicals and consumables for membrane filtration and reverse osmosis systems. For more, visit www.h2oinnovation.com.

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.

- 30 -

Source:

H2O Innovation Inc. www.h2oinnovation.com

Contact:

Marc Blanchet
+1 418-688-0170 marc.blanchet@h2oinnovation.com

H2O Innovation Inc.

330, rue Saint-Vallier Est, Suite 340

Quebec City (Quebec) G1K 9C5

Canada

Tel. : +1 418-688-0170

Fax : +1 418-688-9259 www.h2oinnovation.com info@h2oinnovation.com

distributed by