QUEBEC CITY, Dec. 6 /CNW Telbec/ - The management of H2O Innovation (2000) Inc. ("H2O" TSX V : HOI) wishes to inform its shareholders of its intention to propose the nomination of an additional member for its Board of Directors at the Annual and Special General Meeting of the Shareholders to be held on December 7, 2005 at 2 p.m. New candidacy for the Board of Directors The management intends to submit the candidacy of Mr. Jacques Putzeys to the shareholders for the position of director of H2O. This proposed change to the composition of the Board of H2O is further to the private placement recently completed with the Amsterdams Effectenkantoor B.V. group ("AEK"), among others. This candidate is in addition to the candidates proposed by the management, namely Messrs. Guy Goulet, FrDedDeric DugrDe, John G. Booth, Philippe Gervais, Tony Bergeron and AndrDe Duquenne. Mr. Jacques Putzeys is a Belgian national with extensive experience in the financial markets. He has directed several banks (FORTIS in New York, NAGELMAECKERS in Brussels), where he acquired great expertise in the fields of corporate auditing, control and financing. Mr. Putzeys was also a co-founder and officer of a technology stock market in Europe (EASDAQ), which he integrated into NASDAQ. He chaired the Market Authority and participated in the admission of 53 companies to the Exchange. Mr. Putzeys serves as Chairman of the Supervisory Board of the French corporation THEOLIA S.A. Consolidation of Shares As provided in the H2O proxy circular dated October 26, 2005, the shareholders will also be asked to vote on a special resolution for the consolidation of the 93,256,011 Common Shares currently issued and outstanding, on the basis of 10 currently issued shares for 1 new Common Share. No fractional Common Share of H2O will be issued to the H2O shareholders following the consolidation. Any fractional share of less than one half (1/2) share will be cancelled without compensation and any fractional share greater than one half (1/2) share will be increased to one (1) Common Share. Following this consolidation, nearly 9,325,601 new post-consolidation shares will be issued and outstanding. This consolidation is being done to favour and facilitate the investments of various institutional investors, especially European investors, following major issues of shares and convertible securities by H2O over the past few months. The realization of this consolidation is also conditional on obtaining the final approval of the TSX Venture Exchange Inc. for this purpose. Following approval by its shareholders and the TSX Venture Exchange Inc., H2O will proceed with the filing of amending clauses and will send each of its shareholders, through its transfer agent and registrar, a transmittal form containing the conditions and instructions required in order to proceed with the exchange of currently issued and outstanding shares for the new Common Shares issued following the consolidation. Moreover, the warrants currently issued and outstanding will be adjusted automatically, according to their terms and conditions, as at the effective date of consolidation to adjust the exercise price of these warrants and the shares that may be acquired following this consolidation. AEK private placement H2O also wishes to remind its shareholders that the closing of the second portion of the private placement concluded with AEK, which was announced by press release this November 21, should be completed on or about December 7, 2005, upon receipt of all of the authorizations required by the competent securities authorities. About H2O H2O's mission is to develop, manufacture and market innovative, environmentally friendly products, intended for production of drinking water and treatment of sewage and industrial process water. The TSX Venture Exchange assumes no responsibility for the relevance or accuracy of this press release.