TMX group

H2O now has the largest portfolio of innovative, certified water 
treatment solutions for the communities of Quebec.

QUEBEC, July 27 /CNW Telbec/ - The Direction of H2O Innovation (2000)
Inc. ("H2O") is pleased to announce the completion of the acquisition of all
of the outstanding shares of BIOSOR Technologies Inc. ("Biosor"). This
transaction (the "Transaction") was made following the announcement, as of
April 28, 2005, of the signing of an agreement in principle concerning the
acquisition of Biosor and the principal terms and conditions of the
Transaction. Through this transaction, H2O acquires exclusive rights related
to the BIOSOR(TM) technology in America and know-how developed over the past
10 years by the Centre de recherche industrielle du QuDebec (CRIQ). BIOSOR(TM)
has patents in Canada and the United States as well as patents pending in
Mexico and eight European countries, and is certified standard by the
MinistGere du DDeveloppment Durable, de l'Environnement et des Parcs (MDDEP)
( http://www.mddep.gouv.qc.ca/eau/eaux-usees/usees/fiches/biosor.htm ).
H2O Innovation (2000) Inc. becomes the Quebec Company with the most
solutions certified by the MDDEP in the industry of water treatment for
commercial, institutional and community applications. BIOSOR(TM) adds to the
existing H2O portfolio for waste water treatment offering to its clients a
complete line of solutions. "By offering such a large portfolio of solutions
we can provide the best solution adapted to a client's specific problem. This
is a strong competitive advantage" explains Jacques Labrecque, Sales Manager.

BIOSOR(TM) is a filtration technology essentially based on peat and wood
chips. Its treatment capacity is comprised of various filtration, biological
and chemical processes that allow more than 95% purification of the organic
pollutants found in municipal, agri-food and agricultural effluents. The
technology is also in trials for other types of liquid and gaseous effluents.
"The proven simplicity and performance of BIOSOR(TM) responds to the needs of
clients governed by environmental standards as severe as for large cities or
large industries, but with fewer resources" affirms Elise Villeneuve, former
president of Biosor, who is accepting a full time position with H2O, and will
ensure the integration of the technology.
The purchase price of the Transaction may be paid entirely in shares of
H2O. The total value of this Transaction will be a maximum of 1 575 000$, with
325 000$ payable at the closing of the Transaction in the form of 2 166 667
common shares of H20 at $0.15 per share. Provided that sales objectives are
reached, H2O will be required to pay the balance of the purchase price of the
Transaction in common shares, which will be a maximum of 1 250 000$ over a
period of five years, at a price per share equal to the greater of the average
price of H2O shares for the 20 business days preceding the closing of the
Transaction, and $0.15 per share. At the option of H2O, these amounts can be
paid in cash. For the full amount of this transaction to be paid, the annual
sales of BIOSOR(TM) must attain $1 000 000. All shares issued by H2O will be
subject to a holding period of four months from the date of closing, and each
anniversary date of the transaction.

For more information on BIOSOR(TM): www.biosor.com or on the site of the
CRIQ :
http://www.criq.qc.ca/fr/0202_envir/p020202_biofiltration.html .

Information contained in this press release has neither been approbed nor
disapproved by the TSX Venture Exchange.